Where to invest in real estate in the world?
Barry Copeland
22 / December / 23
Visitors: 160
Real estate investment is considered a lucrative business. To increase their profits, some real estate developers try their luck abroad. So what are the best countries to buy real estate abroad? In this guide, we will take a look at the countries where real estate deals are worth pursuing.
The best destinations for real estate investment
Investing in real estate abroad is a serious business. To limit the financial risks, you need to choose your host country carefully.
Italy
Italy is one of the best places to invest in real estate. In 2019, the government has introduced a more attractive tax measure, the "flat tax", aimed at people over sixty who want to spend their golden years there. This tax measure, valid for 5 years, allows retirees moving to live in Italy to benefit from a 7% cap on tax on foreign income. The measure applies to a number of regions including: Calabria, Puglia, Abruzzo, Sicily.
In these areas, the price per square meter is €1,000 compared to €15,000 in major cities such as Rome and Milan.
Canada
For several years now, buying real estate in Canada has been an attractive proposition. In Quebec, the cost per square meter is more affordable than in other major cities. According to industry experts, residential real estate here is three times cheaper. An investor with a budget of 150 thousand euros can buy a building. This is a real advantage if you want to make rental investments. In terms of taxation, income from real estate in Canada is taxed more favorably than in Europe.
Indonesia
Indonesia is a popular destination for foreign investors. This is due to the country's political stability and economic growth. In terms of taxation, there is no property tax. However, expatriates do not have full ownership of real estate. They only hold a usufruct of ownership of residential properties with the possibility of renewal for 30 years. This allows them to generate income from real estate. With the influx of tourists to the country, this way of acquiring real estate is attractive as it provides a return on investment.
Thailand
In Thailand, the cost of real estate is more affordable. This means that you can easily invest in luxury without running out of funds. To help you get the most out of your investment, there are various land plots for sale in exceptional locations such as the coast. In some locations, properties are available exclusively for expatriates married to Thai nationals.
Mauritius
If you are looking for a destination favorable for real estate investment, Mauritius, located in the heart of the Indian Ocean, is the one for you. Thanks to the IRS (Integrated Resort Scheme), you can own a luxury property and become a permanent resident of the country. In addition, you can take advantage of a number of tax benefits. For example, the government of Mauritius does not charge tax on real estate, regardless of its value. Moreover, VAT in Mauritius is 15% compared to 20% in Europe.
What are the formalities involved in buying a property abroad?
Whatever your plans are, whether you want to buy a rental property, a second home or a home to live in in retirement, you need to learn about the terms and conditions of buying property abroad.
In some cases, it is quite possible to draw up a private contract of sale. In other countries, a notary or lawyer must be consulted to complete a real estate transaction. Whatever the case, it is necessary to contact a translation agency to reproduce the identity documents in the language of the host country. A sworn translation is very important at this stage. In other words, a professional translator can confirm that the translated document is identical to the original. You should also keep in mind that this process gives your documents legal validity. It can also protect you from any disputes with the property owner.
It is important to remember that legislation and taxation can vary from country to country. For example, in some Asian countries, expats are required by law to enter into a partnership with a local resident in order to own real estate. To avoid surprises, it is best to contact a real estate professional to get more information on how to purchase residential property in your chosen country. To get in touch with a local lawyer, it is best to utilize the services of a translation agency. This way, you will be able to translate the legal document easily. Once you arrive in the country, an interpreting agency can also offer their services for the duration of your stay. This professional will help you to communicate better with the locals.
As for financing your project, it is quite possible to get a loan in the country where you want to buy real estate. To do this, you will need to open a bank account and provide a surety. You will also need a good legal translation of the documents. By submitting a convincing application to the bank, you increase your chances of getting a mortgage loan. Typically, banks will pay 30% to 50% of the total cost of the project.
