MATLAW - Mestre Associate Lawyers’ Post

DAY 1 - Tips to buying property overseas! When buying property abroad, performing due diligence is essential. This process entails comprehensive research and investigation to mitigate risks. Here are the key areas to concentrate on: 1. Verifying property ownership when buying property overseas is crucial: ✅ Prevents fraud by confirming the seller's legal right to sell. ✅ Identifies liens, disputes, or encumbrances that could impact ownership. ✅ Clarifies inheritance laws for passing property to heirs. ✅ Ensures compliance with local laws to avoid legal issues. ✅ Helps secure financing with clear property titles. ✅ Facilitates a smooth transaction process and reduces risks. ✅ Offers peace of mind by protecting investments under legal frameworks. 2. Conducting building inspections when purchasing property abroad is essential as it guarantees a secure investment without any concealed problems that may result in expensive repairs or safety risks. A comprehensive inspection can uncover structural, electrical, or plumbing issues, as well as confirm compliance with local building regulations. This not only provides reassurance and negotiation leverage but also aids in planning for future upkeep and enhancements, safeguarding your investment and ensuring a safe and pleasant living space. 3. Understanding tax implications when buying property abroad is crucial for financial planning. Each country has its tax laws including property, inheritance, capital gains, and rental income taxes. Consulting a tax advisor specialising in international real estate can provide tailored advice on tax treaties and optimising your tax situation. Consider currency exchange rates, real estate market trends, and economic conditions for informed decision-making and maximising returns on your investment. 4. When purchasing property abroad, understanding legal and regulatory compliance is crucial. Key factors to consider include local property laws, tax implications, and financing options. Consulting local real estate attorneys and tax professionals can provide clarity and guidance in navigating these complexities. By conducting thorough due diligence, you safeguard your investment and prevent costly errors. Investing in overseas property can be profitable with careful planning. By following these steps, you can make well-informed choices and confidently pursue your real estate objectives abroad. #duediligence #propertyinvestment #overseasproperty #realestate #investment

🚨 Selling Property in Canada? Don’t Lose This Key Document! When it’s time to sell your Canadian property, there’s one document you absolutely cannot afford to lose: the purchase and sale agreement from when you bought the property. Here’s why: ✅ It’s the first document CRA will ask for when you sell your property. ✅ Without it, proving your property’s cost basis becomes a nightmare—and CRA won’t hesitate to make things difficult. ✅ Pro Tip: Keep your purchase and sale agreement safe—store it in a safety deposit box or wherever you keep your important documents. 💡 Avoid unnecessary headaches and penalties by staying organized. Selling property as a non-resident is complex—let us help you navigate the process! 📞 Need cross-border tax help? We’re here for you. Contact us at TheMacTax.com   #CrossBorderTax #CanadianTaxes #RealEstateTax #CRAAwareness #TaxTips #NonResidentTax #CPA #BookkeepingServices #CanadaUSTaxes #RealEstateInvesting #PropertyTax

Learned this today about investing in Dominican Republic real estate … I’ll explain what I learned, how I’m applying it and something REALLY annoying that happened An SRL here is essentially an LLC - you name it - you register it - you acquire the asset in it - it provides personal asset protection - different tax advantages Here’s why we set up an SRL vs buying the property in our name 1. Asset protection .. nuff said 2. Tax strategy .. while the tax rate is higher the write offs associated bring it down significantly to essentially normalize it. Plus we’re thinking long term, not just this one investment 3. CONFOTUR transfer .. ok this doesn’t apply to us, but it’s a reason to consider anyway if you’re buying with CONFOTUR CONFOTUR approved properties mean you pay no transfer tax (3% of purchase price) and no property taxes for 15 years We bought a condo at $170k that is not CONFOTUR. Property taxes don’t apply under $180k in value, and the 3% doesn’t matter to us because we feel the location is excellent The builder didn’t want to go through the expense and headache of approval as well Now if it WAS CONFOTUR, and in my personal name, when I sell, it doesn’t transfer But because I’m buying in an SRL, the new buyer could purchase the SRL keeping remaining CONFOTUR benefits in place Now what’s annoying? I tried to name the SRL and the attorney replied it was taken. Dammit!!!

Foreign property owners risk overpaying thousands each year. And most don't even know it. What happened last month perfectly shows why: A client's renovation invoice landed in their inbox. 22% VAT rate. Standard rate in Italy, right? Except this specific work qualified for a 12% cut. One simple expert check = €20,000 saved. But this isn't just about VAT rates. What foreign owners often miss: • Contractor quotes above local rates • “Administrative fees" that shouldn't exist • Hidden charges in service contracts • Tax rates applied incorrectly The truth? Managing property in Italy isn't just about maintaining your investment. It's about protecting it. While everyone focuses on the purchase price, The real costs are hidden in the details.

💼🏠 Canadian Property Flipping Rules: What You Need to Know The Canada Revenue Agency (CRA) has rules regarding property flipping that could impact anyone buying and selling real estate in Canada. Here's what you need to know: 1. Residential Property Flip Tax: If you sell a residential property within 12 months of purchase, the CRA may treat your profit as business income rather than capital gain. This means higher taxes and no access to the principal residence exemption. 2. Exemptions: The rule includes exemptions for sales made within 12 months due to certain life events: - Death: If the sale occurs as a result of the owner's death. - Disability: If the owner or a related person experiences a serious disability. - Breakdown of a Marriage or Common-Law Partnership:In the case of relationship breakdown. - Employment Change: If the sale is due to a change in employment circumstances. - Insolvency: If the owner or a related person is declared bankrupt. - Threat to Personal Safety: If the owner faces a significant threat to their safety. - Other Prescribed Circumstances: Any other situation that the CRA may specify. 3. Reporting Requirements: Be prepared for increased scrutiny and documentation when reporting the sale of a flipped property on your tax return. This includes disclosing the sale date, purchase price, and sale price. 4. Penalties for Non-Compliance: Failure to report the sale or correctly classify the income could result in penalties and interest charges from the CRA. Before making any real estate moves, it's crucial to understand these new rules and their potential impact on your taxes. Consult with a tax professional for personalized advice. Stay informed and share this post to keep your network in the loop! #RealEstate #PropertyFlipping #Taxation #Canada

🌍 Thinking of investing in UK property as a foreign buyer? The UK market holds great promise, but it also comes with its own set of unique challenges—especially for those purchasing from overseas. Many foreign investors make mistakes that can result in unexpected costs, compliance issues, or missed opportunities. Here’s a summary of the five most common pitfalls: 1️⃣ Underestimating Additional Costs – Beyond the purchase price, there are additional expenses to consider, such as Stamp Duty Land Tax (which is higher for non-residents), legal fees, survey costs, and currency exchange fees. Overlooking these can strain your budget. 2️⃣ Lack of Research on Location – Not all UK regions perform the same way. It’s essential to understand local rental demand, future development plans, and letting regulations to choose an area that aligns with your goals. 3️⃣ Overlooking Tax Implications – From income tax on rental earnings to Capital Gains Tax when you sell, UK tax rules can impact your returns. Planning for these early with a tax advisor can help you maximise your post-tax profits. 4️⃣ Attempting Remote Management Without Support – Managing a property remotely can be tricky. Maintenance, tenant management, and local regulations require hands-on attention, making a reliable property manager a valuable asset. 5️⃣ Neglecting Proper Legal Documentation – The UK property market has strict legal requirements. Proof of identity, address, and funds are essential, and any delay in documentation could hold up your transaction. 💼 By being aware of these potential errors, you can approach the UK property market with confidence and ensure a smoother buying process. Learn more about each of these points in our latest article to make your property investment journey a success. 👉 Read the full blog at https://bit.ly/3AlIjWT #UKPropertyInvestment #ForeignInvestors #PropertyAdvice #AvantusProperties #RealEstateTips

🏡 Understanding Stamp Duty💰 If you're buying property or land in England or Northern Ireland, Stamp Duty Land Tax (SDLT) is an important cost to factor into your budget. Here's a quick breakdown: Residential Properties (Primary Residence): £0 - £250K: 0% £250K - £925K: 5% £925K - £1.5M: 10% Over £1.5M: 12% First-Time Buyers: 0% on the first £425K (for properties under £625K). 5% on the amount above £425K. Additional Properties (Buy-to-Let or Second Homes): Add a 3% surcharge to standard rates. Why It Matters: Whether you're buying your first home or expanding your portfolio, SDLT can significantly impact your costs. Planning ahead ensures you stay informed and financially prepared. ✅ Tip: Use the official SDLT calculator to estimate your charges. 💡 Ready to discuss your next property move? Let’s connect and talk strategy! #PropertyConsultant #property #propertyforsale #propertyinvestment #firsttimebuyer #propertyforsale #FindMyDreamHouse #iaduk #iad

I am pleased to have shared insights in Business Insider's recent article analyzing Spain's proposed property tax for non-EU buyers. The measure has generated much discussion, touching on housing affordability, real estate dynamics, and international investment. You can read the full article here: https://lnkd.in/dgZS6KzR Key Data: Foreign buyers accounted for 14.85% of property purchases in Spain in 2024, with non-EU buyers making up just 6.2% nationwide (source: Colegio de Registradores). Non-EU buyers typically focus on high-value or luxury properties in regions like the Balearic Islands, Canary Islands, and Comunidad Valenciana. Their activity does not overlap with the housing needs of first-time buyers or middle-income families, who are more affected by affordability issues. The role of non-EU buyers, accounting for just 6.2% of purchases nationwide, raises important questions about the efficacy and potential unintended consequences of the proposed tax. Balancing housing affordability and Spain’s position as a desirable destination for responsible international investment is critical. I encourage you to read the article and explore the data further. Housing is a universal challenge, and informed, evidence-based discussions are vital to making progress. Thank you to Business Insider for the opportunity to contribute to this important topic.

Tax implications on buy to let property Many expats rent out their UK home, while they are abroad for work reasons or having settled abroad for good. Keeping your UK property will give you a peace of mind you are still on the property ladder when returning to the UK, to provide income, and it also makes it easier to obtain further mortgages later on. #PropertyManagementCentralLondon #PropertyManagementChiswick #PropertyManagementHammersmith #PropertyManagementHollandPark #PropertyManagementNottingHill #PropertyManagementShepherdsBush #PropertyManagementWestKensington #PropertyManagementWestLondon #ResidentialPropertyManagementLondon

Can Foreigners Buy Property in the UK? What You Should Know Yes, foreigners can legally buy property in the UK with no restrictions. Here’s a quick guide: Financing Your Purchase Foreign buyers can get UK mortgages but may face higher deposit requirements (25-40%) and interest rates. Proof of income and financial stability from your home country is usually required. Legal Process Hire a Solicitor: To handle legal matters like contracts and property searches. Property Surveys: Recommended to assess property condition. Stamp Duty Land Tax (SDLT): Includes an additional 2% surcharge for non-residents. Tax Considerations Income Tax: Rental income is taxed. Capital Gains Tax (CGT): Applies to non-residents selling UK property. Inheritance Tax: May apply to UK property. Benefits of Buying in the UK Stable Market: Offers potential for capital appreciation. Rental Income: High demand for rentals, especially in cities. Diverse Property Options: From urban apartments to rural homes. Tips for Buyers Research the market thoroughly. Get professional advice. Stay updated on legal and tax regulations. Conclusion Buying property in the UK is a good investment opportunity for foreigners. Understanding the financial, legal, and tax aspects, and getting professional help can make the process smoother and more rewarding. #PropertyInvestment #RealEstate #CommercialProperty #ResidentialProperty #InvestmentGoals #RiskManagement #FinancialPlanning #WealthBuilding #RealEstateTips #ContactUs