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| Asset Design Limited is authorised and regulated by the Financial Services Authority |
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August 2004 - Beware of The Tax Implications Asset Design have become aware a number of prospective purchasers are not aware of the tax laws, inheritance and death duty implications on buying property abroad. In France, for example, if you're not a permanent resident, nor resident for tax purposes (spend more than 183 days a year there, or more time there than in any other country), you'll still be liable to pay tax on any income from your French property. You will also be subject to an annual wealth tax on the value of your French assets. Furthermore, when you sell whatever property you buy, you'll be taxed on any capital gain. If you're a non-resident owner, the rate that applies is 33.3%. Make sure you plan for tax! Please call Asset Design for further advice. Sales and Leaseback Schemes Sale and Leaseback schemes are operated by resort developers selling properties to investors who may only use it for say 6 weeks a year. The rest of the year it is leased back to the developer who in turn will let it out and guarantee an annual income for the first 2 years. The guaranteed income is normally in the region of about 6% of the value of the property. This is an easy option for purchasers not wanting the hassle of managing their property. However, some schemes are poorly regulated so caution should be taken when considering this option. Need
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