Foreigners are attracted to London real estate

2011 12 30 | Category: News

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In 2011 citizens of foreign countries have spent 4 billion pounds on London real estate. According to the real estate firm Savills, in 2010 the number was 2,1 bn pounds.

This surge of buyers among other things is influenced by favorable tax treatment and comparatively small amount of paperwork required to proceed with the deal. Companies, incorporated in the offshore jurisdictions, are often the owners of real estate. A buyer can significantly reduce his stamp duty if he makes his deal with the help of the corporate entity established overseas. If one will buy London property priced over 1 mln. pounds directly, than the stamp duty will be 5%, as opposed to the offshore company, which as the new owner of the real estate property, will have to pay only 0,5%. Also the level of confidentiality while using that property acquisition scheme rises.

According to the expert findings, in 2011 65% of the property valued higher than 5 million pounds was made by the citizens from post-soviet states and Middle East.

It is planned, that in the capital of United Kingdom there will be built 9000 new luxury units within next 9 years .

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Sources:

Guardian.com: Lower taxes lure foreign buyers to spend £4bn on London properties (Rupert Neate, December 23 2011)

Taxationinfonews.ru: Недвижимость Лондона привлекательна в силу налогового регулирования (26 December 2011)


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