Czech Republic resonably strong FDI whats the deal with buying property

[ecstatic]

Researching where may be up and coming in next 10-15 years and czech republic keeps on rearing its head:

The FDI figures look quite okay:

http://www.finfacts.com/irelandbusinessnews/publish/article_10002361.shtml

Has anyone purchased property over there any what are there thoughts?

Commercial - residential?

Just throwing a feeler out there at the moment.

I see interest rate is very low but from memory i believe there stock market is sitting at 52 week highs at present.

Whats the buying process and financing process like...?

 

[tcl]

Hi there,

I am wondering if you proceeded with your property quest in the czech republic?
I am looking into property out there myself and I am wondering if its a good deal...I have looked at other places such as Bulgaria, Montenegro and the guar. yeild in the czech ski resort of 7% for 3 years seem to be the best around.
There is also projected property increase of 12-15% per year.
However you go have to set up a limited company to own property out there which costs around 2k. Does anyone have any other information on this?
Capital Gains tax is exempt if you hold onto the property greater than 3 years however you are then caught for corporation tax @ 15%.

Any thoughts on this?

 

[RainyDay]

Capital Gains tax is exempt if you hold onto the property greater than 3 years however you are then caught for corporation tax @ 15%.

But this exemption wouldn't apply to you if you are tax-resident in Ireland.

 

[asdfg]

Capital Gains tax is exempt if you hold onto the property greater than 3 years however you are then caught for corporation tax @ 15%.

In addition,you are still liable for Profit on Rental Income at your marginal rate and Capital Gains Tax in Ireland. If there is a Double Tax Agreement with Czech Republic covering a particular area of tax then you can offset the liability (if any) paid in one country against the liability paid in another.

 

[tcl]

There is a double tax agreement between Ireland and the Czech Republic - does that no imply that the max tax you pay is 20% - i.e. equivalent to 20% CGT - so you may have to pay corporation tax @15% so you need to pay the Irish goverment 5%

 

[RainyDay]

There is a double tax agreement between Ireland and the Czech Republic - does that no imply that the max tax you pay is 20% - i.e. equivalent to 20% CGT - so you may have to pay corporation tax @15% so you need to pay the Irish goverment 5%

Hi Tcl - I know little about double taxation treaties and nothing about the Irish/Czech treaty. All I do know is that it is very dangerous to draw broad conclusions from the existance of such a treaty. In particular, mixing up corporation tax & CGT in this way seems a bit strange. You'd really need to be very sure of your facts via professional advice before making any such investments.