Originally Posted by Goldberg Global

This product is not a 2 year flip, but recommended 5 to 10 years as the Capital gains tax tapers the longer you hold. It is advisable to buy and hold, an ideal pension fund product.


I am curious why it would be an ideal pension fund and why you do not say what your taper is, it could also be a massive burden


With reference to Romania and the yields being 6%, this could be true, This is true, but not for those people who have bought of new found foreign experts, our clients will gladly endorse us n thiswe have partners who say the same. But then we do the reality check, with Romanian friends, If you have a tooth ache do you go to a friend? Try using someone qualified and an authority in the market not a friend who like everyone in Ireland and the UK for the last 10 years said property was to expensive when they did not understand the demographicsthe yields to sales prices are out of kilter, with NO GUARANTEES on rents. Good grief are you serios, GUARANTEES on rents have been one of the biggest cons in overseas property sales, any informed investor has saw the scams or the dilution of potential profit associated with the same. Good knowledge of the area and research is what is important as if you buy crap on day one this is all you will have to sell in your 5-10 years
These are WITH RENTAL GUARANTEES AT 6%. Romania is not! [b] I can get anyone a guaranteed rental return of 6% in Romania, this is very easy to do, but we prefer not to conduct such bussiness and just go for premium investments that generate this unaided There is no such thing as a guaranteed rental return in this world, you can have safe guards yes, but guaranteed, No!!!! Correct me if I am wrong here, but are you refering to French Lease Backs here, I would hate to think you would be endorsing such a poor scheme of Investment due to how the French government is and has been trying to off load theseThere are very few places around the world with this level of protection and security. To date we have not found any where else. France is a very exceptional market.

Why is France so exceptional?

One other contrast between France and Romania. FRANCE IS A REGULATED AND LICENCED And foreign agents do not act as intermediaries, thats like all this crap of being affiliated to or register to................. Investors are spending money and if we could get more to read sites like this perhaps it would become much more difficult for unscrupulos agents to deceive themREAL ESTATE MARKET WHERE YOU NEED TO BE QUALIFIED TO SELL PROPERTY. Romania is a free for all, slightly backward real estate market, with contentious title issues, land registry, alot of cowboy operators. There are no bigger cowboy operators than the British & Irish agents who deceived their own in places like Bulgaria and Spain and when it comes to deception lets look at the Multi National recognised outfits who are nothing more than market makers as we are now seeing in market realignment in Ireland and the UK, not to mention America, It is your own country men you should be more afraid of than the Romanian, I cannot get 169,000 for a house that is currently being sold by one of these agents from 355,000 So for the more risk seeking, higher risk, possibly higher return, though no guaranteed, then voila, enter Romania, where we will help you. I do not understand this sentance

For solid returns, leveraged funds, GUARANTEED RENTAL INCOME, SAFETY, a longer term investment, ideally 10 years plus (so all your profit is not eaten up by real estate commissions, legal fees, some small taxes), Come on, be fair tell us what the small taxes are?then FRANCE IS VERY GOOD.

And when you compare Romania to France, MY PENSION FUND MONEY will be on the country MOST VISITED IN THE WORLD, with a completely CLEAN AND TRANSPARENT REAL ESTATE MARKET, with the most TOURISTS per year, with an under supply in certain areas, with very hard planning laws to restrict supply and keep prices rising. Check your facts on France's demograhics, it is currently no bed of Roses

SOME DOCUMENTS BELOW TAKEN FROM THE INTERNET, PLEASE USE A PROFESSIONAL TAX ADVISER WHEN ASSESSING YOUR TAXES OR REGULATED FRENCH PROFESSIONAL.

Romania is here to stay, but as mentioned my pension fund seeks steady and consistent returns over the long term, rather than casino style investing in certain emerging markets. Then if you see this as casino style you should not be advising anyone as you should have the knowledge to adequate due dilligence and research to make an informed decisionI know Romania through very close contacts, and would prefer the stability and safety and western standards of the worlds most visited tourist destination for my pension fund money. Nothing like toursim to stablise a country, and I actually have my doubts that more people vist France than the USA with its weak dollar



France
Capital gains tax is a flat 16%, 3% in Romaniawith an annual exclusion or allowance of €5600. What is the exclusion?Residents pay an additional 11.6% 'Social Charges', non-residents are not liable to this, there is a 15 year taper relief. And this is where investors get caught, what happens if due to circumstances beyong his control he has to sell in 4 years? He is locked in with severe penaltiesHowever, in some specific situation tax can be reduced or eliminated (such as selling one's principal private residence). This is an investment not primary residence


From French Entree

If you are subject to capital gains tax on a property sale, how is the tax calculated ?

The basic rules are that the purchase price can be revalued, by purchase and sale costs and any major renovation bills, although there is now no inflation allowance. The resulting figure is subtracted from the sale price to calculate the taxable gain.

The gain is then taxable at a set rate of 16%, for European residents, with an a extra “social tax” ( a form of National Insurance contribution) of 10% [( rising to 11% this year) for French residents. Anyone who is not a resident of a European state will pay a set tax rate of 33%. Good grief 33% tax, are you insane, French leasde backs are about as much about investment as Dream oversea apartments in Sunny beach

However, the conditions of acceptance of “renovation work” are very stringent. This must be carried out by a registered French artisan ( with appropriate invoice) and invoices for materials you have purchased yourselves are not allowed.

Unfortunately, the previous possibility that you could have an “expert evaluation” of the work done, instead of producing invoices, no longer exists, so capital gains, for the “bricoleurs”, who have done all the work themselves, is now much more of a problem.

Moreover, if you are non-resident of France, you are obliged to appoint an official “tax representative”, who is responsible for calculating and paying the tax on your behalf. Our experience of certain of these organisations is that they are expensive, uncommunicative and act more like tax inspectors, than your own “representative”.

Even so, all is not lost, since there has always been a significant allowance given for the length of time you have owned a property, which has seen major changes this year :
There is no allowance for the first 5 years of ownership, but every year, from then on, allows you 10% off your capital gain, with the result that a property owned for more than 15 years is free of Capital Gains Tax. So correct me if I am wrong here 29.5% if you sell before 15 years and nothing thereafter

Whatever your situation, these rules show that the tax position of a British resident in France is always going to take some understanding. Taking professional advice has become even more important.


And a look else where maybe a lot more beneficial, I would see 6% in a bank account or saver scheme more attractive, what is discussed here is in my opinion about lifestyle living and in no way investment orientated

Rupert Holderness