Worldwide legal news LEGAL NEWS
20 | ROUND UP What’s it about?
This is a regular feature of OPP magazine. Over 70 lawyers and accountants around the world have agreed to keep us informed about any new develop- ments in the law in their country that they think are of particular interest to the overseas property industry. If you are aware of any interesting changes to the law in your country of residence or business, contact
john.howell@opp-connect.com. Alternatively, if you know of a good, reliable lawyer who might be prepared to help, please do the same.
The most important of this month’s legal news from our correspondents around the world. More legal news is available in the News section at
www.opp-connect.com
Changes to rental laws in Spain The Spanish government has altered its rental laws in a bid to encourage buyers to buy properties and rent them out. As a result of large national and bank debts, and a poor property market, legislation will be in favour of landlords rather than tenants. The time in which tenants are permitted to stay in rented properties will be changed, and the government will offer a tax relief
“Changes to rental laws which favour landlords can only help attract more British buyers”
generating up to 100% on the rental income. These are specifi cally designed to target overseas investors – the group bought 12% more property in Spain in the second quarter of 2012 than in the same period in 2011. Nick Marr, director of overseas property specialists
HomesGoFast.com, said “changes to rental laws which favour landlords can only help attract more British buyers to the Spanish property market.” [Source:
HomesGoFast.com]
Cyprus to see immovable property tax reform
Cyprus is currently preparing a bill to reform immovable property tax, which will create circa €29 million more for the government annually. The tax-free value of immovable property will be lowered from €120,000 to €40,000. The fi nance ministry stated that due to
the country’s calculation of property tax value using standards from the 1980s, the government has incurred a large loss in revenue and inequality between property owners. They view this reform, therefore, as a quick and effective solution. The proposals have already been submitted to parliament. [Source:
Propertyshowrooms.com]
Portugal gives extended visas to non-residents
United Arab Emirates have introduced a multiple-entry visa for businessmen, property investors and tourists, the plan of which has been under discussion for nearly three years. This is on the basis that they are connected with a private or public company in the country, or own property in the country, and therefore may require frequent access into the country. Tourists on-board cruise ships will also be entitled, as their schedule includes entering the country more than once. There are, however, conditions:
“The [Cypriot] government views this reform as a quick and effective solution”
businessmen are permitted to enter the country several times within six months of the issue date, but each stay must be no more than 30 days. For a property investor, they may also enter the country several times within six months of the issue date, but they are allowed to stay for as long as the visa is valid. Tourists on-board cruise ships may enter the country several times within three months of the date of issuance, and are only allowed to stay a maximum of 14 days per visit. [Source:
emirates247.com;
breakingtravelnews.com]
In an attempt to attract non-residents who are interested in investing, a new legislation has been put in place in Portugal to extend non-residents’ long-term visas. The law was effective from the start of November 2012, and is expected to generate employment opportunities and business funds. The new rules for visa eligibility state that one can purchase a property in the country that is worth a minimum of €500,000, or that will create at least thirty job opportunities. [Source:
Property-abroad.com]
UAE to issue multiple-entry visas
Abu Dhabi extends 5% rent cap Abu Dhabi’s rent cap, which prevents landlords increasing the capital of rented properties by more than 5% annually, has been extended for another year. General Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, issued the extension earlier in November. It has been in place since 2006, and will exist in law until 9th November 2013. Leases can only be increased from between 0-5%, if at all, and the tenant must be told in advance of any increase, preventing them experiencing any sudden rise in rents. The extension of tenancy contracts also means that landlords are not allowed to ask tenants to vacate the leased unit because of the expiry of the tenancy contract before the 9th November 2013.
[Source:
gulfnews.com;
thenational.ae]
www.opp-connect.com | DEC 2012/JAN 2013
This month’s legal roundup focuses largely on the many tax changes affecting the world’s property market in recent (and upcoming!) months. We also see changes to mortgage and rental laws, new residency agreements and a variety of other legal news to keep you up-to-date on what’s going on in global real estate law
UK launches campaign to catch rental property tax evaders HM Revenue & Customs (HMRC) has launched a taskforce in the South East of England to target those avoiding rental property taxes. It predicts that the taskforce will cover around £4 million; the department is already on target to collect more than £50 million following forces launched at the end of last year. David Gauke, the Exchequer Secretary at HMRC, said “we will not tolerate tax evasion and will crack down on the minority who choose to break the rules. It cannot be fair that, while most people are paying the right tax, a tiny minority are not paying what they should.” The department is serious about the crackdown, and the taskforce will visit traders to examine their records and carry out other investigations. [Source: Property Wire]
China approves differentiated dividend tax rates
The Chinese government has approved a new policy for differentiated dividend tax rates, due to come into law on January 1st 2013. The plan will help promote long-term investments, and aims to halter short-term speculation. Investors are to be taxed on their dividends from companies according to the amount of time they hold shares, according to the Ministry of Finance. Those holding shares for over a year will pay 5%; those holding for between one month and a year will pay 10%; and those holding for less than a month will pay 20%. These new policies, China hopes, will promote long-term stability and the healthy development of the country’s capital market. “The move will have a positive infl uence on investor behaviour which will boost the capital market in the long term,”
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 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76