As from December 2003 house owners who held their properties in any of the 83 blacklisted tax havens – Gibralter, Guernsey, etc… faced, and continue to face, enormous financial penalties if they remain registered in these jurisdictions.
Each property attracts an annual rates charge of 5% of current declared value and a charge termed “assumed rental income” – even if the property is not let. The situation will become worse when the governments proposed upgraded valuations are introduced when owners of Blacklisted property companies will have to start outlaying a minimum of 10 times and a maximum of 25 times the annual property rates which they would otherwise pay (i.e 0.2% - 0.5% of the upgraded valuations.
If you have been advised that your only option is to transfer the property into your own name, or that potential purchasers are only interested in acquiring privately owned property, don’t be bullied by such comments examine the benefits of re domiciliation, both to the seller and the buyer
You cannot allow your company to remain in black listed off shore jurisdiction. If your existing management company have already re-domiciled your off shore company do also be aware that there are several registrations still required in Portugal before that re domiciliation is recognised here for fiscal purposes, and at the Land Registry to show the world at large that your new white listed Domicile is recognised.
If you property remain blacklisted as of the 31st of December 2005 you will face another year of outrageous punitive taxes.
Sovereign and SMEC LLC offer straight forward, low cost and simple to understand advice. For further free information and advice contact
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