When investing in property, it is important to consider the added costs if you want to maximize your profits. There are a lot of additional taxes that you have to pay when purchasing a property and on the income that you make from your investment. Capital gains tax, which is charged on your income and when you sell the property, is a particular problem for investors because it eats into profits.
However, the good news is there are plenty of places around the world that don’t charge capital gains taxes on properties. If you are looking to increase your income from your investments, you should consider looking further afield and investing in some of these countries.
Switzerland is a world renowned center for banking and wealth because it has very favorable tax laws. In most cases, there are no capital gains taxes charged on investments of any kind (unless you trade securities for a living) and that includes residential properties. There are other taxes you have to pay but these are also reduced the longer you hold the property for. So, as long as you own the property for more than 4 or 5 years, your taxes will be minimal. If you’re looking for a European property investment, Switzerland is one of the best choices. The country is ideal for investors of any kind because it’s an incredibly stable economy. They are politically and internationally very neutral, so the chances of your property investment plummeting in value are very low.
Singapore has seen a large amount of investment in the last few decades and it is now an international business hub with a lot of amazing investment opportunities. There are lots of great hdb properties available to investors and you will not be charged capital gains taxes on your income from them or if you eventually sell the property. Singapore is a vibrant cultural hub that is just as popular with tourists as it is with business people, so there are some excellent options for investors. As the economy continues to grow, it’s likely that property prices will rise, so it’s a good time to get in right now.
In Monaco, there is a strong focus on creating a tax system that is attractive to foreign investors and expats, so there are no capital gains taxes for anybody that is not a French citizen. The prices put some investors off because property prices are high in Monaco. However, it is a country with a lot of wealth, so whether you are renting your property out or selling it on, you can still make a good profit. The other good thing about Monaco is that there are a lot of simple paths to residency. So, if you are thinking long term about retiring somewhere abroad and you want a great investment, buying in Monaco is a great idea.
Capital gains taxes can be a big problem for property investors, but you can avoid them if you invest in these great countries instead.
