TAX
BELOW: Le Centaur in Flaine, France. MGM (
www.mgm-
constructeur.com) is building 66 new ski apartments at Le Centaur, a residence de tourisme development in Flaine, with prices starting
from £130,000 for a studio. RIGHT: Villas Valriche
Villas Valriche is situated in the Savanne region of
Mauritius. When complete, there will be 288 Mauritian plantation style villas
overlooking the Indian Ocean. Set around an 18-hole
championship golf course,
prices start from £800,000 – on the market with Cluttons Resorts
(
www.cluttonsresorts.com).
charges no income or capital gains tax, which means that any potential property price gains or rental income would be exempt from tax.
MAURITIUS Overseas nationals can only purchase properties in developments that form part of the Mauritian government’s Integrated Resorts Scheme (IRS). The IRS provides automatic residency to freehold
property owners and their dependants, which also brings substantial fiscal benefits including low income tax and no capital gains or inheritance taxes. Robert Green, director of Cluttons Resorts, says: “Mauritius
offers significant attractions for overseas purchasers. Homes in the IRS provide automatic residency to foreign freehold property owners and their dependants, bringing substantial fiscal benefits, including personal income tax of 15 per cent, no capital gains tax and no inheritance tax.” People who buy a home within the IRS are also
exempted from the requirement to obtain a work permit and can legally run a business from Mauritius. Green adds: “Mauritius was recently voted ‘Best Place to do Business in Africa’ by the World Bank.”
FRANCE (sale-and-leaseback) France offers one of the most stable and low-risk property markets in the world, thanks to its strong economic fundamentals and prudent attitude to mortgage lending. Richard Deans of French property developer MGM
comments: “Property prices in some parts of France are back at the pre-credit crunch levels of 2007 and current demand makes further rises inevitable. “Compared with the summer period last year, enquires
made through MGM’s London office leapt by a massive 70 per cent year-on-year.” Many property investors and holiday homebuyers seeking a low-risk, hands-off, long-term form of investment, opt for
France’s sale-and-leaseback (propriete allege) system. Most properties under the scheme qualify for a 19.6 per
cent VAT rebate from the French government after a period of time, while there are other possible tax advantages. This French property investment concept allows people
to purchase property - often a new-build off-plan apartment - and then lease it back to a management company for a typical term of 9-11 years. This is usually in return for a guaranteed annual rental income of between three and five per cent throughout the duration of the leaseback agreement. During the leaseback period, the management
company is responsible for letting the property, furnishing, maintenance and paying all bills. Always enter into an agreement with a reputable management firm. Any investor who never intends to personally use their
leaseback property may find that their investment qualifies to be placed into a UK Self-invested personal pensions (SIPP), as it would be classified as a commercial investment. Brits are allowed to purchase ‘commercial’ properties in the UK and abroad through their personal pension schemes, as long as they do not make any personal use of it.
Contacts: Property Frontiers:
www.propertyfrontiers.com Savills Oman:
www.sav-oman.com Cluttons Resorts:
www.cluttonsresorts.com The MGM Group:
www.mgm-constructeur.com
Homes Overseas .19 HO .047
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30