|Home| Info| Community| Business| Beaches| What to do?| Rentals| News| Forum| Blogs| Finance| History| FAQ| Contact|
Punter
-
Property Prices
Punter
What is the general view on property prices in Carvoeiro? Is there any upward movement or are they flat. Do properties near town still command a premium and are there any particular areas to avoid? Has teh onshore offshore debate finally been settled and how long generally are properties staying on the estate agents books for? Are villas selling better than apartments?
Any views will be most welcome
Any views will be most welcome
As a fairly rough answer to your questions -
Prices still seem fairly flat.
If you are looking for a rental property then walking distance of Carvoeiro is always a plus.
The offshore situation is not a problem for a new buyer, only for an existing owner.
Properties stay on the books for a matter of weeks or years depending on the asking price and the desirability of the property.
Apartments usually sell better at the moment, a smaller outlay and running costs with longer rental season, but every property is individual, and priced correctly, any good property will sell.
Just my observations, let me know if you want any more detailed info by e-mail or pm
Prices still seem fairly flat.
If you are looking for a rental property then walking distance of Carvoeiro is always a plus.
The offshore situation is not a problem for a new buyer, only for an existing owner.
Properties stay on the books for a matter of weeks or years depending on the asking price and the desirability of the property.
Apartments usually sell better at the moment, a smaller outlay and running costs with longer rental season, but every property is individual, and priced correctly, any good property will sell.
Just my observations, let me know if you want any more detailed info by e-mail or pm
-
Punter
Property Prices
Thank you Kteee
Are offshore props still selling. Are buyers still willing to entertain the annual costs, for what is from my understanding, little benefit to the purchasing party. I think most of the tax breaks and advantages have been eroded.
Are offshore props still selling. Are buyers still willing to entertain the annual costs, for what is from my understanding, little benefit to the purchasing party. I think most of the tax breaks and advantages have been eroded.
If a property is currently offshore it can still be bought in the normal way - the buyer would buy the property from the offshore company instead of buying the company as happened in the past.
I know of several cases where this has happened and, as I said before, there are no implications for the new buyer - the current owner has the responsibility of winding the company up and paying any tax due.
I don't know how many properties are still held offshore in 'black listed' jurisdictions, I would guess that most people who still have offshore properties have re-domiciled to the 'white listed' areas like Malta, New Zealand and Delaware by now.
I know of several cases where this has happened and, as I said before, there are no implications for the new buyer - the current owner has the responsibility of winding the company up and paying any tax due.
I don't know how many properties are still held offshore in 'black listed' jurisdictions, I would guess that most people who still have offshore properties have re-domiciled to the 'white listed' areas like Malta, New Zealand and Delaware by now.
-
punter
Prices
K'tee - but if the property is held in one of the white jurisdictions, then the shares can still be transferred to a buyer who is willing to carry the cost of the offshore Co, can they not? The seller would obviosuly benefit from not having to carry the cost of bringing it onshore, CGT and SISA, and presumably prices are adjusted accordingly?
Does anyome know if this has been doen post the new legislation and what are the main drawbacks?
Thx
Does anyome know if this has been doen post the new legislation and what are the main drawbacks?
Thx
-
kt
-
Punter
Prices
I found this which is scary to say the least. I thought that offshore ownership was exempt from UK reporting. Seems not....
Following a decision in the Inland Revenue's favour in the House of Lords in the case of Regina vs. Dimsey and Allen in October 2001, the Revenue are now able to contend that if an individual owns shares in an off shore company and that company owns a property which the individuals used he would be regarded as a shadow director of that company and accordingly was liable to be charged tax on the benefit for occupying that property.
The taxable benefit for off shore companies is the annual value, i.e. what the property would be let for on the open market. This is normally taken as 8% of the capital value. Therefore on a one million pound property that is equivalent of a rent of £80,000 per annum. The effect of an £80,000 per annum benefit in kind is a tax bill in the United Kingdom of £32,000 per annum.
Following a decision in the Inland Revenue's favour in the House of Lords in the case of Regina vs. Dimsey and Allen in October 2001, the Revenue are now able to contend that if an individual owns shares in an off shore company and that company owns a property which the individuals used he would be regarded as a shadow director of that company and accordingly was liable to be charged tax on the benefit for occupying that property.
The taxable benefit for off shore companies is the annual value, i.e. what the property would be let for on the open market. This is normally taken as 8% of the capital value. Therefore on a one million pound property that is equivalent of a rent of £80,000 per annum. The effect of an £80,000 per annum benefit in kind is a tax bill in the United Kingdom of £32,000 per annum.