EU: The End of Foreign Property Acquisition?

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EU: The End of Foreign Property Acquisition?

The shortfall in the EU Member States’ budgets is pushing the national government of the EU Member States to find the solution on how to fill out the national treasurers. France has recently introduced additional tax on foreign-owned property, companies, trusts, and foundations. The new tax is 3% on the market value of the property. Also, foreign owners have to make the full disclosure of the beneficiary ownership.

With the COVID-19 crisis looming, the investors are looking for more tangible investments instead of investing in the international share and bond markets. One of the success stories of lifting the real estate market in Cyprus. The 2013 Financial Crisis in Cyprus has crushed the property market. The Cyprus Government has introduced the Cyprus Passport for Investment Scheme where the applicants must invest €2m in the primary property market and purchase a primary residency at the value of EUR €500k and above. The overall improvement in the Cyprus economy has helped to list and the corporate service industry as the demand for Cyprus trading and holding companies increased due to the relatively low cost of incorporation and maintenance of Cyprus companies and advantages of the Cyprus tax system.