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Real Estate

Real Estate

Residence-by-Investment

International Passport has extraordinarily led several residence-by-Investment plans over the years. We offer private residency advisory and services to our clients so they could experience the best quality of life alongside a suitable business environment and acquisition of citizenship by the state.

International Real Estate

International Real Estate is an important part of both citizenship and residence planning which is why it must be paid some serious attention. From clients to law firms and consulting companies, we provide professional assistance through various affiliated groups and advisory to the people seeking residence or citizenship. Intelligent planning for the acquisition of international real estate can abundantly benefit you in terms of tax savings, security, asset protection, and considerable incentives. International real estate mainly targets those individuals who wish to acquire a real state in one country and are legal residents of another country. With our professional assistance, the sale, purchase, and even structuring of international real estate for such individuals can easily become possible under legal aspects such as tax law, property law, and even international private law.
Our vast network of tax consultants, professionals, specialist lawyers, and investment advisors can help you acquire International real estate under intelligent and professional guidance. We also offer all the necessary services required by an applicant during the process of international real estate acquisition.

Important points to consider

While planning about the place of residence in another country, there are a few important points that must be ingrained into your mind. These points are structured in terms of estate planning and tax.

  • Real estate transfer taxes
  • Annual real estate taxes
  • Local inheritance and gift taxes
  • Local inheritance laws and forced heirs hip rules
  • Taxes and Capital gains as a result of real estate re-sale
  • Maintaining confidentiality
  • Immigration restrictions
  • Personal tax liability and tax residence

When a real estate is purchased in a country, the official sale contract declares the price of the real estate which later becomes the basis of real estate tax transfer. This is one of the most reliable and easiest methods of collecting taxes in any country. However, in countries like Italy and Spain, individuals often declare a lower real estate price in the official contract to get their real estate tax charges dropped, which is an illegal practice. Sometimes, instead of real estate, the real estate holding company shares are transferred to steer clear of direct real estate tax transfer completely. This practice, however, is common in some countries while completely objectionable in others that question the indirect transfers and demand direct real estate tax transfer.

Annual real estate taxes

These real estate taxes are imposed on immovable properties which are collected annually by the authorities. To guarantee the transfer of annual real estate tax, many countries lessen the real estate tax charges on annual basis except for Malta, where individuals don’t have to pay for taxes annually after purchasing the real estate.

Local inheritance and gift taxes

When an inheritance real estate or gift real estate is involved, taxes are usually imposed on the immovable properties that are held by individuals residing in foreign countries. This causes the property holders to pay taxes solely on the basis of inheritance and gift. Countries like Spain, France, and USA have 80%, 60% and 55% of gift and inheritance taxes rates respectively which are considerably higher when compared to Bahamas, Bermuda, and Malta which have 0%, 0% and 5% of gift and inheritance taxes rates respectively where individuals can enjoy very little to no gift and inheritance taxes. Most of the countries have regulated tax laws to ensure that every property holder pays their taxes and refrain from getting engaged in foreign or domestic structures to dodge legal taxes. The tiers of foreign and domestic entities have become increasingly difficult to set up because of Look-through mechanisms. This leads to difficulty in providing real estate ownership to individuals who live in foreign countries.

Local inheritance laws and forced heir ship rules

Another addition to local inheritance tax issues could be forced heir ship rules and local inheritance laws. For instance, in France, the international private law demands that all real estate must be enlisted under heir ship rules and French inheritance forcefully. However, the application of inheritance laws belonging to foreign countries is usually permitted to domestic real estate in other countries. We still insist our clients review all the advantages and disadvantages where international inheritance laws are involved.

Taxes and Capital gains as a result of real estate re-sale

At the time of a real estate purchase, an individual must keep its re-sale in mind for later in life. The real estate is usually passed onto the next generations or sometimes simply sold again to another party. In both cases, the buyer must be vigilant regarding the impending real estate laws and related legislation from the very start. The legal perspective that comes with purchasing real estate in a foreign country must be kept in mind.

Maintaining confidentiality

Confidentiality is mainly for privacy concerns. Mostly, celebrities and high-profile public personalities who move around frequently, prefer to maintain confidentiality for real-estate security. However, several countries object to such capital movements and wish to keep tabs on the income and assets of their taxpayers with proper reporting. Because of such restrictive clauses, individuals have to face tax consequences and are unable to maintain confidentiality while planning foreign real estate business. This increases the demand for confidentiality especially among high-profile celebrities in terms of their real estate holdings.

Immigration restrictions

Immigration restrictions might interfere withthe real estate business. A country might allow you to purchase real estate but the limitations that come with immigration might presume otherwise. For instance, owning a house in Florida doesn’t automatically permit you entry to the USA because of immigration reasons. Similarly, in some countries because of some strict requirements tethered to visas for political reasons, the individuals are limited to certain traveling places. This also happens with the nationals of the USA, Canada, Western Europe, and Japan where it suddenly becomes impossible for them to get a visa. This is due to the imposition of travel restrictions that are temporarily put in place when the country is going through a political menace of economic disturbances. Therefore, for an individual planning to purchase real estate in a foreign country, they must consider all these immigration restrictions beforehand.

Personal tax liability and residence for tax purposes

Living in the holiday home as long as it does not turn you into a tax resident is a difficult practice. We advise individuals to be cautious while using the holiday home in a foreign country or else they may have to face the personal tax consequences that could turn out to be quite problematic. The tax is only imposed when certain factors are struck such as the individual’s nationality, the country name, applicable double taxation treaties, and the duration of one’s physical presence in the holiday home.