Real Estate Investor Magazine South Africa September/ October 2019 | Page 54

CYPRUS SPONSORED Use Property to switch to a tax ‘haven’ An investors perspective on property and taxes P roperty investors wish to maximise cashflow and in- come but must accept that in the world of tax author- ities exchanging information they are limited to con- trolling certain factors. The investors only source of control is limited to the type of information exchanged between tax authorities. Investors can choose the tax jurisdiction which best serves a family or individual. MAXIMISING YIELD The overriding goal for passive income property investors is to maximise after tax rentals and yield in a stable investment environment. to trade in any EU country with no cross-border restrictions or duties. The corporate tax rate is 12,5% and investors can receive Tax Free Dividends,” says Costas Souris of Quality Group. EXPAT TAX SOLUTION Souris explains that with the new expat tax being implemented in March 2020, South African’s abroad can switch tax residency as a solution to this. To obtain the tax benefits available in Cyprus, you require a tax number and residency. Investing in the Golden VISA | PR | EU Citizenship FASTrack Property Programs brings such benefits. CYPRUS AS A FIRST CHOICE Cyprus is an independent and democratic country with a low tax EU regulated jurisdiction. The country has ‘beneficial’ tax breaks designed to attract investors and families of substance; a deliberate strategy employed by the government of Cyprus. The plan has been wildly successful with unemployment after the global crises falling from over 16% to less than 5%. Cyprus has a GDP that is outperforming European countries at almost €uro 4% per annum. The local economy is geared up by your investments in property which generates jobs in construction, services and tourism with additional revenue for government such as, VAT. “Investors win due to low personal and corporate taxes compared to any other tax jurisdiction. Personal Estate Planning is simplified in a jurisdiction of zero inheritance taxes. For business, Cyprus is an EU jurisdiction giving you the ability 52 SEPTEMBER/OCTOBER 2019 SA Real Estate Investor Magazine BENEFITS FOR GOLDEN VISA/PR/EU CITIZENSHIP PROGRAMMES 1. Residency for life now and in the future 2. Tax residency for life (180-day rule or 60-day rule) 3. Very familiar to South Africans being a former British colony 4. Stable and “safest country” in Europe with inflation below 2% 5. Euro passive income with 5-year rental guarantees of Euro 6% pa NET! [email protected] [phone]