Contact

Tycoon Businese School

沃原地產開發有限公司版權所有

    Phone:

+886.2.2345.0088

  Service:

 am 10:00 - pm 05:00

   E-mail:

 One of the 10th floors, No. 398, Section 1, Keelung Road, Xinyi District, Taipei City

 

Comparison of taxes and fees in overseas real estate countries

In the current era of economic globalization, investors have not only bought homes in China, but have set their sights on overseas industries.The important consideration of real estate tax and holding costs is the main point of concern. Today we take a look at the status of property taxes in popular investment countries

 

1.United States

The purchase of real estate in the United States is a lot of real estate tax. At present, the real estate tax rate in the United States is determined by various local governments, on average between 1% and 3%. The more expensive the house price, the higher the real estate tax. However, buying a house in the United States not only pays real estate tax, but also pays personal income tax for rent according to investment properties.

 

Payment of taxes during the purchase period includes:

Property investigation fee: 200-300 USD

Property insurance premium: 0.3% -0.5% of house price

Registration fee: 100 USD

Land tax adjustment: real estate tax for 1-6 months

Attorney fee: 500-3000 USD

Housing Management Association Fee: 3 months property fee

House appraisal fee, house inspection fee, notary fee and survey fee: 900-2000 USD

 

Payment of taxes during holding period includes:

Real estate tax: 1-3% of the house price / year

Housing insurance fee: 1000-1500 USD / year

Property fee: 0.3% -2.8% of house price

Personal income tax (required for rental only): 10% -35% of rental income

 

2.United Kingdom

When buying a property in the UK, you must pay stamp tax (SDLT) to the tax office before the sale and purchase transaction is finally recognized by the government. Although the stamp house price rises step by step, if the property valued by the company is more than 2 million pounds, the stamp tax rate is as high as 15%. In addition to stamp duty, buyers must also pay VAT, municipal property tax, personal income tax, etc.

 

 

Payment of taxes during the purchase period includes:

Attorney fees: 1500-5200 GBP

Stamp duty: 2500-10,000 GBP (house purchase price exceeds 350,000 GBP need to pay)

Registration fee: 20 GBP

Land survey fee: 350-400 GBP

Real estate registration fee: 270-910 GBP

 

Payment of taxes during the purchase period includes:

Government rent: 300-1000 GBP / year

Property fee: 0.5% -0.7% of house price

Property fee: 0.5% -0.7% of house price

Lease income tax (only payable if the house is rented): The collection of fees depends on the actual situation

 

3.Australia

The major cost of purchasing real estate in Australia is stamp duty, which accounts for between 11-12% of the transaction price. If the buyer sells the property (Australian real estate) within one year, in addition to the agency fees, lawyers' fees, and capital gains tax, up to 50%. Australia has restrictions on the purchase of second-hand homes by overseas investors. Overseas people who do not have permanent residency (green cards) cannot buy second-hand homes, and the four major Australian banks have refused to lend to overseas people. The investment threshold is high.

 

Payment of taxes during the purchase period includes:

Stamp duty (approximately 4%-5% of the transaction price)

Attorneys 'fees: transfer lawyers' fees for ordinary residences are around 1500-2000 Australian dollars

FIRB application fee

Loan fee: around 1000 AUD

Attorney fee: 500-3000 AUD

 

Payment of taxes during holding period includes:

Property management fee: 800-1000 AUD / year

Municipal administration fees and sewage charges: 1500-3000 AUD / year

Land tax: hundreds of AUD / year

Housing insurance fee: 500-1000 AUD / year

 

4.Japan

House purchase in Japan is subject to fees such as agency fees, stamp tax, real estate acquisition tax, and five-year earthquake and fire insurance. Investors pay various taxes and fees when purchasing a house, which is about 6% -7% of the house price. Housing ownership costs in Japan are extremely high. They also have to pay annual fixed asset tax, urban planning tax, repair fund, tax accountant fees, etc. The cost of holding each year is about 1% -2% of the house price.

 

 

Payment of taxes during the purchase period includes:

Registration tax: 2% of house price

Real estate acquisition tax: 3% of house price

Agency fee: 3% of house price + 60,000 JPY + consumption tax

Stamp duty: pay according to the purchase price of the house, the cost is 10,000-100,000 JPY

 

Payment of taxes during holding period includes::

Fixed asset tax: 1.4% of fixed asset evaluation

Urban planning tax: 0.3% of fixed assets evaluation

Property tax: see property company regulations

 

 

5.Dubai

Dubai also has many reputations and advantages such as "Middle East Switzerland", "Financial Center" and "", and has become one of the destinations for "real estate investment" of high net worth individuals. The tax and fee for buying a house in Dubai is only 4% of the land office registration fee, and the rest is zero.

The United States, Japan, the United Kingdom, Australia, and Dubai are the most popular overseas investment countries. Taxes and fees in the process of real estate transactions and holdings have their own weights. Compared with the five countries, Dubai has an absolute advantage for foreign investors.

 

It is the largest city in the Middle East, the financial center, and the most influential city of trade. It is ranked seventh by Forbes. 88,800,000 foreigners can borrow 50-75%, interest rate is about 4.5%, rental return rate is 8-15%, and buy an investment visa of Dh1 million or more with a rent over ten years.

 

Advantages of Malaysian Real Estate

The main advantages of Malaysian real estate investment can be cut from these aspects:

    

1.Property rights in Malaysia are generally 99 years or perpetual property rights. They can be inherited from generation to generation.

2.The geographical location is excellent. The annual temperature is between 21 ° C and 30 ° C. There is no obvious winter. The green coverage rate reaches 70%, of which 58.7% is virgin forest, no natural disasters, suitable for living and vacation.

3.Following the British education system, bilingual environmental English teaching, diplomas are internationally recognized, and the cost of studying abroad is only 1/3 of European and American countries. Malaysia has become a springboard for many international students.

4.The cost of living is low, the people are gentle and friendly, the multi-racial and multi-cultural environment, the basic public facilities are perfect, the world's leading medical experts and medical standards have developed into Asia's outstanding medical centers, and it is also a country recommended by the Asian regional government for medical tourism. Quality of living standard, suitable for old age.

5.Chinese account for about 1/4 of the population, and Mandarin is common. In 2017, Malaysia welcomed 25.9 million foreign tourists. The increasing inbound tourist population year by year, plus the 45th anniversary of the establishment of diplomatic relations between China and Malaysia, is also one of the important nodes of the Belt and Road policy. Cooperation is getting closer, multicultural and multilingual have international competitive advantages and a good investment environment.

6.A sound Commonwealth legal system, the Malaysian government actively encourages and supports overseas investment through a series of services and plans. In Malaysia, real estate transactions have formed a sound legal system, the market is relatively mature and standardized, there is a sound legal system, and information is open Transparency, developer integrity is high, professional lawyers protect the owner's own interests, and minimize the risk of buyers.

7.Malaysia's real estate market has very developed leasing.

8.The second home plan is for one person to apply, the family can enjoy permanent residence, and enjoy the dual status of China and Malaysia flexibly. International travel is more convenient and the application threshold is low.

 

Under the influence of so many advantages, more and more people are buying a house, and new problems are constantly emerging. If you intend to invest, you must understand what problems foreigners will encounter when buying a house in Malaysia?

 

Q1. Eligibility questions: Can foreigners buy a house in Malaysia?

can. Foreigners are legally free to purchase real estate such as detached houses, townhouses, apartments, landed properties, suites, commercial properties, industrial real estate, agricultural land (non-Malay reserve) and industrial land (non-Malay reserve ), Except for the properties listed below:

1.Property for less than RM1 million

2.State-designated cheap residential units

3.Building in Malay Reserve

4.Property under development designated by the government as an indigenous unit

Q2. Immigration Question: Can I Buy a House in Malaysia?

No! Malaysia does not yet have an immigration policy for foreigners. Buying a house is not the same as immigration.

Q3. Attorney needs: Do I need to hire a lawyer to purchase a house in Malaysia? How much does it cost?

It is necessary to find a lawyer, and it is also a way to protect the interests of buyers. Generally developers will help to hire a lawyer, and the cost is about 0.7% of the total price of the property.

Q4. Related taxes: What are the taxes and fees to pay when buying a house in Malaysia?

1.Deed tax: It is levied on a pro-rata basis based on the total real estate price, ranging from RM0-100,000 to 1%, RM100,000-500,000 to 2%, and RM500,000 to 3%.

2.Attorney fees: Proportionately levied based on the total real estate price, RM0-150,000, lawyers' fees 1%; RM150-85,800, lawyers' fees 0.7%; RM85-200,000, lawyers' fees 0.6%.

3.Loan stamp duty: 0.5% of total loan 

4.Loan lawyer fees and miscellaneous fees: about 0.8% of total loan

5.House tax + title deed tax: around RM1500 (apartment)

6.Property management fee: RM500-1200 per month for 100m2 house

 

Q5. Process: What is the process of buying a house in Malaysia?

After confirming the real estate purchased, first pay a 3% deposit, sign a house purchase agreement within 14 days, pay the remaining 7% deposit, complete the full payment within three months, stamp the sales agreement, and register with the Land Registry.

 

Q6. Loans: Can I Buy a House in Malaysia?

Can. MM2H holders can enjoy up to 80% of the loan amount when applying for a bank loan; non-MM2H holders generally have a maximum loan amount of only 70%, with an interest rate between 4.2% -4.5% and a term of 30 However, the mortgage cannot exceed 70 years of age, the loan stamp duty is 0.5% of the total loan, and the lawyer's fees and miscellaneous fees are 0.8%.

 

Q7. Remittance: How to remit money from home when buying a house in Malaysia?

You can open an account with a Malaysian bank in the country and then send money to the buyer's overseas account.

 

Q8. Duration of Property Rights: What is the duration of property rights in Malaysia?

Houses in Malaysia are divided into 99 years and freehold, which can be left to the next generation without estate tax. When buying, be sure to clarify the property rights of the house and check the contract in detail.

Q9. Joint purchases: Can houses in Malaysia be purchased jointly? Is it divided by how many shares each person holds?

Yes, a few people can put their names. There is no upper limit. In the case of shareholding, it is necessary to indicate who accounts for more and who accounts for less when signing the contract, and the specific proportion, otherwise it will be distributed evenly.

 

Q10. Area calculation: Do houses in Malaysia count as common areas? Are they rough or renovated?

The construction area of ​​Malaysia only calculates the actual use area, including the balcony, not counting the pool. They are usually furnished.

 

Q11. Parking: How to buy a parking space?

When you buy a house, you will be given a parking space. Only small units will not be given. One for two rooms, and two for large units.

 

Q12. Real estate management: I bought a house in Malaysia and I don't live there. How can I take care of it?

You can find a local housing agency, rent or agency.

 

Q13. Tax on rent: Is rental income taxable? What is the rate?

Needs. 0-25% for foreign residents; 25% for non-residents

 

Q14. Taxes and fees for sale: What taxes and fees are required when selling a house?

If the property is sold within five years of purchase, the tax rate is 30% of capital gains; if it is sold after six years, the tax rate is reduced to 5% of gains.

 

Q15. Long-term self-occupation: What do I need to do if I want to live in Malaysia for a long time?

You can apply for a "second home". The second home plan is open to foreign nationals recognized by Malaysia regardless of race, religion, gender and age. This is a special visa for families or individuals who wish to stay in Malaysia for a long period of time, a ten-year extension plan that allows multiple entry. This plan does not limit the length of time applicants are required to stay in Malaysia. After successful application, the applicant can stay in Malaysia for ten years, or only one day in ten years without any residence time requirements. In addition, successful applicants can also enter and leave Malaysia unlimited times within ten years.

Generally, foreign nationals in Malaysia are only allowed to purchase any type of real estate above RM1 million. Having said that, the state governments still retain the power to modify the minimum real estate prices that foreigners can purchase.

 

How can foreigners buy cheaper real estate?

Malaysia's Second Home Plan (MM2H) is designed for those who want to settle in Malaysia for a long time (a 10-year visa can be obtained). Many foreigners who have worked in Malaysia have applied for this plan in order to retire in Malaysia in the future. Before applying, foreigners under the age of 50 must show at least RM500,000 in their bank account (savings, current account, regular account), and those over 50 years old are in the above types of bank accounts, at least RM350,000. Even if this requires a high threshold, Malaysia's second home plan allows foreigners to buy property at a lower price. The following can be compared:

 

Mortgage financing

Applicants for the Malaysian Second Home Program can borrow 80% of the mortgage, while non-Malaysian second home program can only borrow 70% of the mortgage. In this case, foreigners are better off applying for loans from foreign banks in Malaysia. However, foreign spouses who marry locals are another matter, because local spouses can join a mortgage application and the loan amount can be as high as 90%.

 

Philippine economic indicator data

According to the latest reports from Google and Singapore ’s National Investment Fund Temasek on the digital economy in the region, the Philippine e-commerce industry will achieve exponential growth and it is expected that the market share of Southeast Asia will reach $ 10 billion by 2025. However, much remains to be done to achieve this goal.

                  

Dino Araneta, founder and CEO of digital logistics company QuadX, said at an e-commerce industry gathering in the country last month: "E-commerce now accounts for only 1.5% of the Philippines retail market, so there is plenty of room for development."

 

According to Tech in Asia, "We can increase this number to 5% in just three years, but we must gain experience with online orders from buyers and sellers."

 

Currently in the Philippines, cash is still king and cash delivery is very popular. 80% of online merchants offer this payment option, also because up to 98% of Filipinos still do not have a credit card.

 

In addition, the traditional online business is only the first chapter of the story of the Philippines e-commerce industry. As the country ’s Internet knowledge and digital services grow, the number of requests and orders that online companies need to process will also increase, mainly using existing platforms such as Facebook. Product micro, small and medium-sized enterprises are most affected because they may not have sufficient resources to establish a dedicated customer service department. New technologies such as augmented reality and artificial intelligence will also bring brand-new buying experiences. Enterprises will need to promote innovation to maintain Operations.

 

At the same time, in the new online retail forecast for Southeast Asia, research firm Forrester Analytics predicts that e-commerce in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam will grow by an average of 23% per year to reach 53 billion US dollars. In 2023, it is higher than the 19 billion US dollars in 2018. The Philippines will achieve the strongest growth of 30.4% before Vietnam and Thailand.

 

Where is Canada good?

What do you think of Canada with high housing prices?

 

When it comes to Canada, the impressions I think of are: awesome natural environment, economic, cultural and entertainment center, the most suitable for studying abroad, the most suitable for living, the most beautiful and modern, the world garden ... Let's take a look today, why the house prices are so high Canada still attracts more and more young people to develop here? What about the real estate market?

 

As we all know, Canadian big cities not only have high housing prices, but also high rents, especially in Toronto and Vancouver. The concerns caused by high housing prices have forced more and more young people to flee, forming an anti-traditional “reverse flow”. But according to the latest report from Daily Hive, an economic research report by the Royal Bank of Canada (RBC) has reached the opposite conclusion: in the past 10 years, young people who have entered the three major cities of Canada, including Toronto, Vancouver and Montreal, have increased without reduction ,details as following:

 

1.Population growth in the three major cities

The report points out that the population of Millennials (aged 20-34 years) has steadily increased into these three cities over the past 10 years. Taking 2018 just as an example, young people in Canada's top three cities The net increase was nearly 100,000, and the accurate figure was 96,000, an increase of 2.9%. Among them, Toronto increased by 58,000 people, an increase of 4.1%; Montreal increased by 22,000 people, an increase of 1.4%; Vancouver increased by 16,000 people, an increase of 2.4%. The only exception occurred in 2015, only this year the growth rate slightly slowed.

 

2.Work and life in big cities attract young people

The report shows that, in fact, no matter whether Vancouver, Toronto or Montreal, these big cities are still huge magnets that attract young talents. They are also the dominant force in shaping the composition of the urban population. The flow of young people is “migration” far greater than “moving out”; Specific example: If a young person leaves these big cities because of housing or living pressure, then 7 to 12 young people from overseas or from other provinces will move in, so the young people will be moved because the housing price is too high. The expression of worry about "getting out" is obviously overstated.

 

3.Housing demand won't fall anytime soon

 

The report also mentions that, while housing prices in Vancouver and Toronto remain high, demand for housing is not expected to fall anytime soon, and the decline may be due to the proportion of young families owning homes. A recent study by Zoocasa, a Toronto real estate website, revealed:

1.n Toronto, the average house price in March was $ 873,100, and only the top 10% of people with annual income could afford it.

2.The average price in Vancouver is $ 1,441,100, and people with an annual income of more than $ 200,000 can afford loans. This population accounts for only about 2.5% of residents.

 

According to the proportion, the housing demand of young people has always existed, so the government is now turning its attention to regulating house prices and counseling young people to buy housing; after all, millennial-dominated young people are not only the most dynamic and most populous in the population. The creative group is also the most energetic, talented and talented generation. It is also important that they are also the most able to consume. The report states that large cities such as Toronto, Vancouver and Montreal are willing to spend huge amounts of money to attract millennials, and at the federal level, they have also set up fast-track visa channels for young high-tech immigrants. At the same time, Canada has been an international student As long as they are yearning, they are constantly pouring into Canadian cities. In this way, they hope to achieve a reasonable balance between economic development and housing prices, so that each city has better development. And let us wait and see!

 

Changes in U.S. home loan interest rates

According to Freddie Mac, the average interest rate on 30-year fixed mortgage loans in the United States fell to about 4%, a decline of 22 basis points, the largest weekly decline in average interest rates in ten years. Previously, the average interest rate on 30-year fixed home mortgages was 4.28%; the same period a year ago, the value was 4.40%.

 

Freddie Chief Economist Sam Khater said:

1.The US Federal Reserve ’s (Fed) concerns over the slowdown in future economic growth have caused nervousness among investors and led to the largest decline in mortgage interest rates in 10 years.

2.The US economy continues to create jobs, which is very helpful to increasing demand for housing, and it is expected that the demand for purchases will continue to grow.

 

In addition, data from the Mortgage Bankers Association shows that applications for mortgage interest rates increased by 8.9% last week due to falling interest rates. Historically, changes in interest rates have had a limited impact on house prices, and falling interest rates will not cause house prices to rise significantly. , But it has a great impact on buyers. The cost of buying a house with a buyer's loan will be significantly reduced. Generally, the interest rate of overseas buyers who buy a house in the United States may be 0.5% to 1% higher than the starting interest rate of American loans. Higher interest rates increase the cost of buying a house. The higher the loan amount, the more money you pay, and of course the less .

 

The Fed's multiple interest rate hikes in 2018 pushed up housing mortgage rates, and in 2019, the Fed switched from "eagles" (controlling inflation and supporting tight monetary policies at high interest rates, tending to raise interest rates) to "doves" ( The best way to stimulate employment is to loosen monetary policy at low interest rates), which will gradually reduce the interest rate on housing loans. The current mortgage interest rate is about 4.5%, lower than the 5% in November last year, but higher than the current interest rate. Existing home sales in the United States have increased significantly by 11.8% compared to the previous year. Due to a 5% increase in sales of homes for sale in January, the market expects that sales of homes for sale will decline slightly afterwards, but actual data shows that the decline is greater than expected.

 

In summary, due to rising housing prices and insufficient housing supply, U.S. real estate is still highly sought after by buyers, and the decline in home mortgage interest rates will also increase purchasing power, so the decline in home loan interest rates may continue to boost the US real estate market. Overseas buyers should still pay attention to changes in the US dollar exchange rate.