| |
| |
|
Nationalrealtyresource.com
|
| Home | Find a topic | Links | Guest Book |
| Welcome |
|
|
|
Residential Property Abroad
It is increasingly common for individuals to own more than one property and in many cases the first investment after the family residence is in a holiday home. Whether you are buying a place in the sun, a country retreat or a city centre apartment, if it is in a foreign country you will be exposed to an unfamiliar legal system and to taxes in the country concerned. It is therefore important, even before a contract is signed, to decide whether to make the purchase in your personal name or through a company. To change course later will always be expensive. It is however usually possible to reduce exposure to tax. Buying in a personal name Assuming the property is for personal occupation, the form of tax, which is most easily avoided, is estate or inheritance tax. The death of the person in whose name the property is registered will normally give rise to a liability which may exceed 40% of the value at the time and the tax will usually have to be paid before the property can be sold or transferred. Buying in a corporate name If, however, the property is purchased in the name of a company, the death of the owner does not create a need to transfer the property. The property will be owned by the company, and it is the shares in the company which will form part of the owner's estate and not the property itself. If the company is formed in an offshore territory, the British Virgin Islands for example, which does not impose taxation on non-residents, the objective of avoiding foreign death taxes will have been achieved. There is a bonus, in that the name of the owner of the company need not be a matter of public record, thereby maintaining confidentiality. Ownership through an offshore company will also ensure that, on death, the property will pass to the intended heirs. It will overcome the forced inheritance provisions found in the civil law and in Sharia law. Purchasing through a company does increase the cost. The purchase may attract a higher rate of stamp duty, the company will need to be professionally managed and it may be required to file a tax return. These costs are however generally modest in relation to the potential tax saving. Some words of caution Some countries, whether in an attempt to prevent tax evasion by their residents, as part of increased international co-operation against tax avoidance or merely to raise revenue from non-voting foreigners, impose taxes on a notional income of companies incorporated in tax- free centres, but not against companies formed in taxing locations. Examples are France, Spain, Portugal, Greece and Argentina. Others, such as the U.K. have hit on the wheeze of taxing their residents on a notional benefit, where the property is owned by a company rather than by the taxpayer personally, and no occupational rent is paid. Foreign investors in U.K. property are not discriminated against however. The answer, as always, is to take advice before acting. The Chesterfield Group provides a full range of trustee, and corporate advisory, formation and management services and invites enquiries. More particulars can be found on our web-site http://www.chesterfield-management.com REF=CH4EZ
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
Should You Sell Before the Housing Bubble Pops For the past several years housing prices have risen dramatically. With interest rates continuously moving up, and more and more people being priced out of the market, all signs point to an imminent housing market correction. Realtors Brainstorm For Business Even though rates are down opening up the market for even the otherwise unqualified buyers, realtors are desperately brainstorming to keep their professional status above in the real estate field.People are learning how to sell their own real estate. As a Realtor, How Do I Attract Listings? Have you ever noticed that despite the massive number of Realtors in your area, only a hand full are making a fortune selling real estate? Regardless of who these realtors work for; GMAC, Century 21, REMax, they are extremely successful where others in their office are barely scraping by. What is the secret to their success? First and foremost, it is their approach to marketing themselves and their customers. Real Estate Bubble: Sophisticated Musical Chairs? The real estate bubble is a hot topic today; annual appreciation and housing prices have never been higher in most U.S. A Few Easy Ways To Take The Headache Out Of Moving Moving from one house to another is always a challenge, but it doesn't have to be a nightmare. Here are some simple tips on how to get it done with minimal stress and strain. Real Estate Problem Solver IntroductionThere are many areas one can invest in. Since I was 15 years old I have looked for the fastest, most effective way to accumulate a lot of wealth, with the least amount of risk. Real Estate Investing - So You Want to be a Landlord! Is landlording the way to go if you are starting into real estate investing today?Receiving cash flow from rental residuals is an exciting idea. If the rental housing is congregated in large apartments within a focused area, the costs of management and maintenance are more economical. Buying Overseas Property Fourteen Top Tips for Overseas Property Investment:1. Buy what you want to buy. How to Buy a Home When Your in Your Twenties A Single's Game of Real Estate (Getting started in your twenties)Due to the fact that most of us grow up in either a rented apartment or our parent's single family home, it stands to reason that most people, when beginning to ask themselves the question of purchasing their own dwelling, will come to the conclusion that a condo or small house is probably the way to go. That's a result of conditioning and it's a hard mindset to break! After taking the time to talk to or personally guide a respectable number of people in their twenties, I have come to find that firm, direct and accurate information can really adjust the reality of how real estate can be acquired and used to their best advantage starting with property that sets the tone for a much more profitable and rewarding future. Sell Your Home Without a Realtor and Save Thousand$$$ A typical real estate commission on a $234,000 home (national median price for all existing homes as of July 2005) is over $16,000. In many areas the cut a real estate broker gets is much higher. How To Find Your Dream Home In Belize Shopping for property in Belize is not as simple an undertaking as you might initially expect!Firstly, estate agents as we know them are non existent! Real estate brokers that do exist are likely to be unlicensed, unregulated and certainly not trained or insured.Secondly, the majority (and I mean the majority) of property for sale is not advertised!But with property prices remaining affordable, the quality of property available attractive, the climate beautiful, the people welcoming, the quality of life incredible and the opportunities in Belize plentiful, more and more people need to know HOW they can go about procuring themselves their dream home in Belize. A Real Estate Primer There are a great many books and web sites devoted to real estate investing out there, but most of them concentrate on one specific area of investing. It's often hard to find a general description of real estate investing, one that lists the various real estate investing strategies and how to get started. Home Inspectors: 5 Tips to Choosing the Right One Choosing the wrong Home Inspector can cost you a lot more than the fee you paid. If you choose a home inspector solely on price alone, your headed down a dangerous highway. Selling Your Home - What Can Go Wrong With Pricing and Loans So, you're selling your home (house, townhouse, condo, apartment, land, lot, farm, ranch, etc.), what can go wrong? The sad fact is that a lot of things can go wrong. Why Should Sellers Be Absent During Showings? If only there were a way to sell your home without letting all those people come through. Unfortunately, the reality is that homes must be shown in order to be sold. Walnut Creek Real Estate Looking to relocate to a Californian suburb with a low crime rate, beautiful luxury homes and the convenience of being located just minutes from Oakland and San Francisco? Look no further than Walnut Creek. This city of just over 65,000 people is staying relatively stable in population, but new luxury homes are being constructed in this northern suburb all the time, and there are countless options. Seven Tips in Choosing Maui Income Properties Aloha! If you are interested in choosing a Maui income property, then there are some details that you should know. You might be a bit intimidated by the whole process of buying a home. Lake Havasu Real Estate Lake Havasu real estate is a hot commodity. With surrounding attractions such as the London Bridge, English Village, Mohave Desert, and Lake Havasu, it's no wonder that the place has become a popular place to live. Commercial Income Property Financing: Part 1 of 3 Welcome to this first portion of a three-part series about income property. In this first segment we will be discussing financing options for commercial income properties as well as the upside (and downside) of owning this type of property. Buying a Home with Zero Down Payment in Irvine, CA Years ago, the only person that could buy a home in Irvine with zero down payment using a new purchase money loan were Veterans of War (called a VA loan). In the past several years, there has been an explosion of new loan programs designed to fit most any buyers circumstances.
|
| |
| |
|
Home | Guest Book |Site Map | Recommended Resources | Search Powered By: TJTMEDIA |
| © 2006 |
