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10 | International property
what they expect to be increasingly harsh tax
rises. Very often, these clients are looking to
take their businesses with them. It is no wonder For many months now, 20% of all
that the offshore locations are benefitting with
healthy property markets, but it is a very sorry
situation for the UK and for those taxpayers new business at our London office
who aren’t able to go offshore.”
“What is extraordinary is that the UK
government appears to believe its most has been from wealthy individuals
productive citizens will sit still to be fleeced,”
said Mr Bilton. “This is not the 1960s, when
currency controls and limited communications looking to move offshore to escape
made it difficult to relocate yourself and your
business. This is the broadband age, when
voting with your feet where tax is concerned is what they expect to be increasingly
a very viable option for many. Everyone has to
compete these days and tax authorities should
not be any different.” harsh tax rises. Very often, these
Against a background of falling property
prices across Europe, Sovereign used its
extensive network of expert property and clients are looking to take their
investment contacts in all the jurisdictions
surveyed, as well as local and international
public record resources, to compile the survey businesses with them
since the beginning of this year.
In Monaco (which, significantly, now boasts
100% broadband coverage), for instance, there to plummet by record levels - several major Even closer to Britain, a few dozen miles
have been reports that property prices have new residential property developments have from the English South Coast’s languishing
risen by as much as 30% - the same amount recently been completed and the developers say property market, Jersey’s chief government
that even the most optimistic observer would they have been finished “in the nick of time” to statistician Dr Duncan Gibaut said property
acknowledge they have fallen in neighbouring satisfy a wave of new residents. Sovereign’s own prices had risen 7% and the worst scenario to
Provence. One leading Monte Carlo estate sources confirm this, including Gibraltar which homeowners and investors in Jersey
agent said in a recent report that Monaco’s “tax property agent Justin Bray of Bray Properties. might look forward in the coming months
haven status ensures the market remains “Recently we have noted a marked increase in would be a period of “stabilising” house values.
buoyant and prices stable so investment in interest for Gibraltar properties and a greater “Prices are still rising but at a lower annual
Monaco property continues to be attractive.” proportion of these enquiries are leading to rate,” said Dr Gibaut.
The situation is similar in Gibraltar where actual sales, allowing us to be even more A stone’s throw away from Jersey, residential
despite prices on the Costa del Sol continuing confident for the future.” property prices in Guernsey were mixed, with
small apartments falling in value by up to
Comments re: Sovereign
sourced income and £200,000 for Guernsey 17%, according to the island’s Policy Council.
Group report on ‘offshore’
sourced income. However, at the same time the price of houses
property prices
“The even greater benefit to Guernsey is - representing 60% of residential property
that these HNWIs tend to also relocate their sales - were up a fraction at 0.1%. “From what
By Peter Niven, Chief Executive of Guernsey business interests. We have seen several we have heard,” said Howard Bilton of
Finance. Guernsey Finance is the high profile examples over the years and Sovereign Group, “that buoyancy at the
promotional agency for the island’s finance this is also something we look to support as wealthier end of the market comes from a
industry. they bring added value to the island, steady stream of new interest from the UK
“Guernsey has in place a number of including enhancing our reputation as a mainland.”
initiatives to attract high net worth good place to do business.” In the Isle of Man, property prices last year
individuals (HNWIs). This is nothing new but Geoff Cook, Chief Executive of Jersey increased by 4% and this year are “holding
what we are being told by those on the Finance, observes that the property market steady” according to Chrystals estate agents,
ground such as estate agents is that there on the island remains robust. “In the past the leading commentator on Manx property
have been an increased number of inquiries couple of years there has perhaps been a trends.
following the UK Government’s levelling-off in terms of price, but I see no In Geneva, housing demand hit a new peak
announcement that the top rate of tax will evidence of an actual decline. I suspect the when the apartment vacancy rate fell to
next year rise from 40p to 50p in pound for issue is primarily concerned with the fact between 0.25% and 0.5% last year and it will
earnings above £150,000. that we are an island, which obviously continue to hold firm this year, according to
“Our own standard 20p in the pound tax means it’s a finite land mass with a finite “Swiss Issues Real Estate 2009,” a report on
rate compares extremely favourably and the housing stock.” While there is normally no Swiss housing published by bank Credit Suisse
case for HNWIs to relocate to Guernsey is problem in gaining planning permission for earlier this year. In addition, the international
even more compelling when you consider a redevelopment of an existing site, estate agents Savills have recently published
that that we have tax capping. This means expansion into fresh greenfield terrain extensive research on the residential market in
that the maximum amount payable per would encounter opposition from a variety Geneva, concluding: “The Geneva market is
individual is £100,000 on non-Guernsey of sources, Geoff adds. expected to plateau, but not decrease during
2009.”
July/August 2009 Investment International www.investmentinternational.com
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