Archive for the ‘Buyer's guide’ Category
Why buy an existing business now?
It’s an unfortunate fact that many businesses are unprepared for a major crisis and got surprised by it. A recession is generally a difficult time for many companies and especially for those, who failed to recalculate correctly their expenses. This is the perfect time for wise buyers to make their choice and make the best of a deal.
- Save money! It may sound surprising, but buying an existing business does not mean that it will cost you more. In fact, many times it’s less expensive than launching a start-up and not to mention all the time that you save for developing the new business. Even in those cases where it may require a premium, at least you know what you are getting. Plus, with the right information you can negotiate incredible deal terms that you could not achieve with a new business. When you know what sort of business you can run, how much you can afford to pay for it and how profitable it should be, it is time to get looking.
- Save time! When you buy an existing business you will have the benefit of a built-in infrastructure. You will inherit active customers, suppliers, employees, equipment and systems. You will save yourself a lot of trouble as this will allow you to focus on developing the business further. You will have positive cash flow on your first day of operation and you can skip the many years it usually takes to get your business name known through expensive advertising and trial-and-error marketing.
- Reduce the risk of failure! With an existing business you will have access to actual historical information that will allow you to thoroughly investigate its past activities, the financials, the market, the customers, the industry, the employees, the competition, its operations, its current status, and its future potential.
Buying a business is something that anyone can achieve. Put yourself in a position to buy. Above all, educate yourself. You cannot guess your way to success! With the right information and advice, you’ll make all the right decisions.
For many, owning a business is a dream. For some, it will become reality. Your fate is in your hands.
The final decision is yours! Never feel intimidated by sellers or be afraid to ask questions. Your broker will help you and ensure you receive the right answers to all your queries. The majority of buyers’ in today’s market will raise finance on their homes.
Cost of living in Bulgaria – 2009
With the following article we would like to help everyone who is considering a property purchase in Bulgaria and would like to know what the standard of life here is. You hear from everywhere that it is cheap in Bulgaria and that investing your money in a property in this picturesque country is a wise decision, but it is hard to believe without being familiar with real digits.
Here you can see the prices of main products and services for 2009.
Food prices:
Bread – 1lv/ 800gr
Eggs – 0.22lv/ 1piece
Milk – 1.40lv/ 1l
Yoghurt – 0.60lv/ 500gr
White cheese – 4.70lv/ 1kg
Yellow cheese – 10.00lv/ 1kg
Sausages – 5.80lv/ 1kg
Vegetable oil – 2.20lv/ 1l
Vinegar – 0.60lv/ 1l
Salt – 0.30lv/ 1kg
Sugar – 1.80lv/ 1kg
Chicken – 4.70lv/ 1kg
Pork meat – 7.00lv/ kg
Fish – 6.00lv/ 1kg of scad
Olives – 4.00lv/ 1kg
Honey – 5.00lv/ 500gr
Chocolate – 1.20lv/ 500gr
Ice cream – 1.20lv/ 200gr
Baby Puree – 1.10lv/ 120gr
Fruits and Vegetables:
Tomatoes – 1.40lv/ 1kg
Cucumbers – 1.40lv/ 1kg
Beans – 3.00lv/ 1kg
Potatoes – 1.00lv/ 1kg
Bananas – 2.50lv/ 1kg
Oranges – 1.80lv/ 1kg
Drinks and Cigarettes Prices:
Mineral water – 1.50lv/ 1.5l
Coke – 2.40lv/ 2l
Juice – 2.00lv/ 1l
Coffee espresso- 1.10lv/ 200gr
Nescafe 3 in 1- 0.40lv/ 1cup
Spirit drinks – 6.00lv/ 1l
Wine – 4.50lv/ 0.700l
Cigarettes – 3.00lv/ 1pack – 20pieces
Prices of goods of daily demand:
Soap – 0.85lv/ 1piece
Shampoo – 2.50lv/ 200ml
Tooth paste – 0.70lv/ 1piece
Washing powder – 1.50/ 330gr
Communal taxes:
Electricity – 0.20lv/ 1kwh
Water – 1.10lv/ m3
Internet – 30lv/ month
Property government tax – 0.15% of the price of the property per year
Diesel – 1.75lv/ l
Petrol – 1.95lv/ l
Gas – 0.93lv/ l
A lunch for two – 20€ (starters, main courses, drinks, desserts, coffee)
Hairdresser services – 5-25€
Main electricity appliances:
TV – 37″ plasma TV – 350€
Fridge – 130€
Air-conditioner – cooling and heating – 300€
Italian properties. Legals and taxes
Italy Investment Property – Tax Planning
Italy’s tax system can be complicated and it is important to consult an expert tax advisor when considering your Italian property investment. Here you can obtain a brief guideline to Italy’s property tax system.
Italian property tax, ICI, is charged to anyone who owns land in Italy and this is charged at between 0.4 and 0.7% depending upon the local authority and the size, location and category of property you purchase. If the property is classed as uninhabitable or it is being restored, the tax is reduced by 50%.
ICI is paid in two installments – 90% by the 30th June each year and 10% between the 1st and 20th December. If the tax is not paid on time, a surcharge of up to 200% can be levied.
Tax on Rental Income
Tax is charged on income received from your property rentals in Italy and you can deduct from this any of your expenses for property maintenance. The rate can be anything from 19% to 46% depending on the property and rental conditions.
Capital Gains Tax
Italy has not charged capital gains tax since 1993 and instead it is incorporated into the ICI.
Inheritance/Wealth Tax
Unlike many other countries, Italy does not charge a wealth tax.
Stamp Duty
If the property is purchased from an individual, the rate is 11% of the government valuation. The value of the property is not the purchase price itself, but the figure assessed by the local tax office and it is calculated from official tables.
UK-Italy Tax Treaty
There is a double tax treaty between Italy and the UK and this protects the investor from paying tax on his Italian assets in both countries.
Buy your dream home in Egypt!
Buying property in Egypt is a straightforward affair provided you employ a lawyer to sort out an otherwise complex system of property registration.
Foreign purchasers have the right to own real estate and land in Egypt. Today the government recognizes the great value foreign investors in property have for the success of the economy and have set about actively encouraging overseas buyers to Egypt. New laws have been established to make the Egyptian property purchase procedure more secure. For example, the government can no longer impound or nationalize any property they wish – a practice that stood for centuries. These changes, along with a few others, are increasing confidence amongst overseas buyers.
1. Make your choice! You will have to choose a property first and here you can use the help of our overseas consultants. Our agents will be glad to help you with your choice as well as to give you professional advice.
2. Make a reservation! Once you decide on a property, you will need to pay a reservation deposit to take the property off the market while contracts are drawn up.
3. Find a lawyer! Lawyers in Egypt will normally speak English and will be able to produce your necessary paperwork in Arabic, as required by all the authorities. Egypt has many complex real estate registration issues so it is critical to have a lawyer conduct the appropriate searches and provide you with legal advice regarding the purchase.
Local lawyers will also help you through the best way to conduct business with the local people who have their own particular idiosyncrasies and customs which are important to be aware of.
4. Take care of all Fees and Taxes! There are some taxes that you will have to pay around a property purchase in Egypt. They are as follows:
- Property registration and legal fees for conveyance total around 6%.
- Stamp Duty on property is payable by the buyer at 3%. The buyer will also pay a small inspection and measurement fee (approx. 65 euros).
- Tax on any form of income from property runs at 20 to 22% and is basically the alternative to Value Added Tax. Many countries enjoy a double taxation treaty with Egypt.
- Egypt levies no inheritance or capital gains taxes.
5. Property Registration. Most Egyptian properties are not registered, even though registration is an essential pre-requisite to a purchase. Therefore the lawyer’s assistance in liaising with the Real Estate Registration Office in Egypt is essential in order to ensure the property is duly registered and prepared for foreign purchase. Registration can take up to four months. After inspections and payment of taxes/fees, you will finally obtain a new title from the Registry.
Red Sea Pharaoh Development Hurghada, Egypt
An excellent choice for anyone wanting to live right in the heart of Hurghada, with all of the town’s facilities right on your doorstep, and all at very affordable prices.Red Sea Pharaoh is a small, intimate development that will appeal to anyone looking for a friendly and personal touch – more like a club than a vast and faceless resort.
Dreams Development Hurghada, Egypt
Hurghada Dreams is a brand new gated development of hotel-style apartments (one & two bedrooms), commercial units and extensive facilities. The project is located centrally in Hurghada in a strategic location between downtown and newtown.This project presents a unique opportunity to invest in Egypt’s rapidly emerging property market.
Water House townhouses Hurghada, Egypt
Water House is a totally unique project to Hurghada that is designed by Europeans, for Europeans. It gives buyers the very best of both worlds – all of the comforts of a world class resort including its own private beach, beautiful landscaped gardens and three enormous swimming pools.
Buyers guide – Italian properties
Off Plan properties
Buying an off plan property in Italy is nice and simple. There isn’t a stack of paperwork to sign like France, and the tax laws are clear and attractive for investment.
To calculate the purchasing costs, you need to divide the process in the “Front end” and the “Back end”
At the front end how much you pay when you sign your preliminary contract will depend on the payment terms of the developer. For example you may have 50% upfront and then 50% on completion, or 30% upfront and 70% on completion.
In most cases you will have to pay a solicitors fee upon signing the preliminary contract which can be anywhere between 1% and 3%, depending on the solicitor. If you are paying a solicitor who is not an expert in Italian Property it is likely to cost you a lot more because he or she will need to spend more time researching to make sure your title is clean. It is also wise to use a solicitor who speaks your native language.
Under Italian law if a developer is building off plan they need to provide the customer with an Insurance Bond or Bank Guarantee for their initial deposit. If the builder should go bankrupt this insurance bond covers the full amount of the deposit.
When you pay your deposit upon signing the preliminary contract your money should be held in the solicitors Escrow account, until you receive a copy of your bond.
All banks and insurance companies in Italy are guaranteed by the Central Bank and so if the particular company who has provided your bond goes bankrupt it is insured by the Central Bank of Italy. What this means essentially is your risk is much lower as you cannot loose your money should the builder be bankrupt.
Before you reach the “Back end” ie. before your property is completed and you can move in, you also have the option of selling the property, as long as the developer does not prohibit this in the preliminary contract.
From an investment point of view this can be very profitable.
Firstly if you sell before completion you are not required to pay VAT, which in Italy amounts to 10%, the notary fee which is in the region of 2%, and two other small Italian taxes which come just under €400.
In Italy there is no capital gains tax if you sell before completion, but should you be a resident of the UK or Ireland those governments require you to declare any income you make abroad.
If you intend to sell your property before completion, it is also wise to have an avenue to sell it through. For example will the developer resell it for you? And how does the developer intend to do that? If there is a high supply in the market it may be more difficult to sell your property. For example in Northern Italy the market is more mature so it would be more difficult to ‘flip’ a property then the emerging southern market.
On completion of your property you are required to pay the ‘closing costs’ mentioned above. You are required to pay 10% VAT of the purchase price of the property, alongside a notary fee and two other small Italian taxes which will amount to roughly 2%.
The notary is a legal body in Italy nominated to complete all the legal details in a completion of sale. The fee however is not a standard 2%, it will often come down to the purchase price of the property. For example if you are purchasing a Villa for €500,000 the fee will be lower then 2%, as €10,000 is too much to pay a notary for a single property transaction.
Should you decide to sell your property within 5 years of it being completed you a required to pay 12.5% capital gains tax to the Italian government. If you sell it after that 5 years, currently there is no Capital Gains Tax.
There is a dual taxation agreement between the UK and Italy, and The Republic of Ireland and Italy which means in your country of residence you are required to pay the balance between the varying tax rates. For example if the rate was 20% in Ireland you would have to pay the extra 7.5% in Ireland when you declare your income.
There is also no inheritance tax on property in Italy. The particular law relating to this is called ‘Uso Fruto’. For example if you put your sons name on your title deeds along with your own, he does not have claim to the rents generated or he cannot sell the property from under you; however if you die the property is passed straight on to your son tax free, as his name is already on the deeds.
Overall the risks in purchasing off plan in Italy are very low because your money is insured; so in comparison to many of the other markets in Europe it is a much safer bet. Usually the financial return on Off Plan property compensates for the risk involved in purchasing something you cannot see and touch yet. In Italy the risks are far lower then a country that may not have an insurance bond or bank guarantee as law; with the main benefit to the buyer being that the potential returns are not affected by this reduction in risk, which makes it a better investment overall.
Why Invest in Italian property?
Italy is an enchanting country of colour and contrast. Magnificent architecture, great food and wine, inspiring arts, classic hilltop towns all continue to entice visitors every year…
Natural And Cultural Factors
- Abundance of culture, history and magnificent architecture.
- Stunning variation in natural beauty, from lakes, mountains and lush vegetation to rugged or sandy beaches.
- Warm Mediterranean climate.
- Recreational activities to cater for all needs, from skiing, hiking or beach holidays to sightseeing and cultural activities.
- Dream lifestyle, modern systems and friendly people make Italy an easy relocation destination.
Economic Factors
- No capital gains tax on profits from Italian property, creating maximum returns on investment.
- Possibility to cut purchase costs in half by becoming a resident.
- Prices remain relatively low, compared to many EU destinations.
- Capital growth of 20% per year in some locations. Many new markets in Italy still remain undiscovered and ripe for investment.
- Possibility to renovate beautiful old Italian houses into fabulous residences that earn high rent in peak season.
- Italy is at the hub of the low cost flights revolution, forever enhancing its strong tourist industry.
- The Italian government offers investors grants to reform rural.
- Italy has pioneered property tax reforms, offering great opportunities for the rural renovator, including substantial VAT discounts.
- EU member country.
- Economic and political security.
- Only 2 ¼ hours direct flying time from UK.
Summary
Italy’s booming and ever expanding tourist industry is a clear indicator of a healthy investment climate. Latest price rises in key locations of Italy were around 22% last year while Italian property remains relatively cheap compared with many other EU countries.
Flying to Italy has been revolutionized by budget airlines, so wherever you choose to invest, your property will be readily accessible. Variety in property type and prices are an added advantage, making Italy an ideal investment for a second or holiday home destination. A gradual move away from the more popular destinations towards some more hidden investment hotspots is the current trend while today property in southern regions such as Calabria is well regarded as a highly promising investment.