Buying property in 5 popular overseas
Countries and people are different; that is what makes them exciting, but if you are investing abroad you need to be fully aware of the pitfalls and the benefits before you start?, says Richard Way, Editor of Overseas Guides Company (OGC) www.overseasguidescompany.com
?Ignorance is the greatest factor for things going wrong when purchasing a property abroad?, continues Richard. ?A little homework before you start can ensure an easy transaction and a safe purchase. This is why we write our Guides. They are to help everyone to know more about the country in which they wish to own a home. For instance below are some of the bizarre and equally noteworthy facts from around the world?.
USA : Despite central Florida attracting millions of tourists each year, only a small percentage of privately owned properties there can be let on a short-term contract to holidaymakers and these must be within a specially designated zone and have a hotel licence issued by the local authority. So, if you?re buying in Florida and intend to rent out your property on a daily, weekly or monthly basis choose your location carefully.
SPAIN: It?s true, there?s no escaping tax. If you own a second home in Spain that you keep for personal use only, so don?t let it, you are still liable for an ?imputed? income tax, known as Impuesto de la Renta de No Residentes (IRNR). Why? In the eyes of the Spanish Government you derive a taxable benefit simply from owning a property in Spain. Anyone liable for, but currently not paying, IRNR take heed: given the current economic climate, the Spanish tax authorities are scraping in tax from wherever they can and clamping down on evaders.
FRANCE : French inheritance law imposes forced heir ship. This means that a fixed portion of a deceased person?s property in France must pass to his/her children or if not his/her parents. If you?re buying in France, speak to a French legal expert for advice on how to retain more control over who inherits your estate there.
TURKEY: In order to get registration of the Title Deeds (TAPU) in Turkey it is necessary to get military clearance for a property. This should be done once the contracts have been signed and the deposit has been paid. The process can take between 3 and 4 months, and the TAPU will not be awarded to a foreign buyer until the military clearance has been authorised.
BULGARIA: Currently, Bulgarian law states that foreign individuals may purchase property, but not land. However there is a way around this law. You can set up a limited company, and then purchase land, or property with land. This is not illegal, and is commonly practised by foreigners wanting to buy land in Bulgaria. A Bulgarian estate agent will be able to advise you on how to set up your limited company. This law is set to change, and 2014 will see foreign individuals able to buy land. Please note however, that if you are buying a property which has for example, a garden, this is classed as land, therefore a company will still have to be set up.
Concluded Richard,? Knowledge gives you peace of mind. Who would think that you would need military clearance to purchase a property in Turkey or a Limited Company formation to own a garden in Bulgaria! A little homework before you put a deposit down on a new home is without doubt the way forward.
Protecting your assets and making sure your investment works for you, from all perspectives; capital growth, a good rental return a dream holiday home or retirement nest, is very important. A little light reading and understanding of how the country of your choice ?works?, can make an enormous difference.?
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