Hey biz! I have up to 600000 usd that I want to invest into a property In a European capital. The idea is to rent it and live comfortably in asia and then maybe sell it in 10-15 years for profit. If you had half a mill to invest, where would you buy?
>>1261400
Considering you aren't bound to a location I'd invest in a city that's still growing. Not necessarily a capital. Plus I'd prefer to buy two properties for that money instead of one to spread the risks.
I'd also invest in a place that I could easily reach to take care of matters. That said, you posted a picture of Amsterdam. Here in the Netherlands you do have businesses that can rent your apartment out for you.
>>1261407
Do you know what are the taxes on renting in Amsterdam? Are the laws pro landlord or pro tenant? Thanks for the reply btw. The more I do my research the more I am leaning towards Amsterdam. Any good neighborhoods you can recommend?
>>1261400
City of London. Prices will only rise in the financial capital of the world. Just make sure to buy the property in a good neighbourhood.
>>1261426
lol nice try. financial capital of europe probably, don't push it.
>>1261411
Box 1 = income taxes
Box 3 = taxes on savings
Box 1 does not apply to passive income streams. So by default, if you buy a house and rent it out to other people, it’s considered an investment. So you do not pay income taxes over that revenue stream.
Box 3 has the fiction that you earn 4% of the value of your house every year (minus some part you don’t have to pay taxes over). And you pay 30% taxes over that. So effectively you pay 1,2% taxes over the value of your house every year.
Note that the abovementioned does not apply if you put the houses in a business and actively make it your business renting out houses. Because that isn’t considered investing.
In Amsterdam you also pay 0,05719% of the value of your house in local taxes. Plus some other things like gas and water and so on.
Another note about Amsterdam is that Amsterdam is pretty much the only Dutch city where a lot of ground isn’t bought but leased from the city. This is should worry you.
I'm not too familiar with the neighbourhoods of Amsterdam.
>>1261426
Bubble much
>>1261429
What I just said does not factor in mortgages of course. Because if you have a mortgage of 100 and a house worth 100 then you have 0 savings.
>>1261431
So then you pay 30% taxes over 4% of 0.
>>1261429
Wow I cant believe that biz can actually deliver. Thank you for this. It is very helpful. Do you think that the best way is to put it into a renting out business? What is the worst thing the government can do since the land is leased?
>>1261426
Wont I get raped with having to give like 50% of my revenue if i sell? My parents did that without paying any tax but that was some serious offshore magic.
>>1261446
>Do you think that the best way is to put it into a renting out business?
That's up to you. But I wouldnt trust some tenant with my house if I was in Asia.
>What is the worst thing the government can do since the land is leased?
Ask a lot of money.
But there is one advantage to buying in the Netherlands. The rents on the private market are usually more expensive than mortgages. So buying is actually cheaper than renting. The only reason why people here rent is because they cant get a mortgage. So after 30 years or something you would have gotten your house for free, paid for by the tenant.
>>1261429
Doesn't this only count for dutch residents? When a foreign person invests Dutch real estate there won't be a "box 3" as the Dutch taxman doesn't know what the assets are of said investor.
It really all depends on the OP's nationality and treaties between NL and his country in that case.
>>1261470
I'm quite sure non-Dutch citizens get taxed based on the same system.
But I indeed don't know how his assets would be calculated or which treaties might apply. Most Dutch tax treaties are only to prevent double taxation, so you won't be taxed for the property in the USA and in the Netherlands. And the Dutch law implies that, when it comes to foreigners, the law only applies to savings and investments located within the Netherlands. But if you want to be certain you'd probably have to contact our IRS.
