Many countries are aware that by imposing excessive taxes, expats are likely to simply take their wealth elsewhere. That is why many countries create tax benefits. In this article we are going to explore the 3 Countries With No Property Taxes
Many countries, specifically those that are engaged in expanding their economy and gaining more attention on the international stage are realizing that in order to grow, they need to create an environment that is attractive to investors and property owners.
CROATIA
In a country that sees more than three-quarters of its population owning their own homes, the impact of property taxes was far-reaching and widespread.
However, Croatia charges tax on property transactions, such as the sale of a home. This 3% rate also came under fire as recently as 2020 when a proposal to have it removed was brought before parliament. But one of these cities is the exception
This is Liechtenstein, in this city there are no property taxes, but notional income on the net value of the property is subject to income tax. For corporations, there is no real estate tax either. But the sale of a real estate share in a Liechtenstein company or real estate in Liechtenstein is subject to capital gains tax.
SRI-LANKA
After years of being overlooked, Sri Lanka is becoming a popular destination and it’s easy to see why, not only for its azure beaches and climate but also for its tax-friendly environment.
Sri Lanka has no property taxes and rental income earned by non-residents is taxed at 20%. This nation, located below India in the Indian Ocean, is more and more of interest to many entrepreneurs and nomads because of its growing tourism industry and potential towards more pro-business policies.
The economy has had steady growth rates in recent years and is home to major industries such as precious metals, agriculture, IT, and textiles. Capital gains tax was abolished in Sri Lanka over a decade ago and rental income is taxed at a flat rate.
BULGARIA
Bulgaria has the lowest personal and corporate tax rates within the European Union , both of which are a flat rate of 10%. While you will also pay a 10% capital gains tax on profits from the sale of property, there is no capital gains tax on your profits if you have investments or trade the stock market in the EU.
You can become a tax resident of Bulgaria in one of two ways:
Live there at least 183 days each year;
Demonstrate to the tax office that Bulgaria is your vital center of interest by presenting evidence in relation to the location of your employment or business.
The country has low corporate tax rates, low operational costs, and if the company has employees lower labor costs than in other EU countries. If the investor just wants to open a private company, on the other hand, there is a quick registration process that takes less than two weeks and a symbolic minimum required capitalization of $1.25 USD
GEORGIA
Thanks to its free economic policies and low taxes, Georgia is one of the most business-friendly countries in the world.Most entrepreneurs own a number of properties in Georgia, and haven’t paid a dime in taxes on any of them.
However, there is a trap here, if you make more than USD $15,000 per year through Georgian-sourced income, then you need to pay a small annual property tax of 1%. For example, my lawyer’s income exceeds that limit, so he must pay about $1,000 per year on his $100,000 apartment. If you don’t have any Georgian-sourced income, on the other hand, then you won’t pay any property tax, and as an added benefit, Georgia also does not charge any kind of transfer tax or stamp duty.
So, if you are interested in finding out more about tax benefits and its opportunities to develop business, contact us today! Below this article, you will find a link to set up a free fifteen-minute consultation with us to discuss your options further.
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