| Online Reference |
    |
» Investing in Croatia
» Investing in Dubai (UAE)
» Investing in Slovenia
» Investing in Turkey
INVESTING IN CROATIAAs more and more European discover small Mediterranean country in southeast of Europe - more going to find residence on east side of Adriatic See. Still many lands, apartments, simple rural and old stone property waiting for new owners.
Croatia has population density 78,5 per km and many undiscovered warm places waiting to be founded. Sea coast of 5835,3 km, especially 4000 km on Croatia islands offer many chances for investing amount in
something
promising
in near future. Port villages, churches and palazzi, all built from the same Dalmatian stone attracting visitors from ancient times seek new owners.
Now, Dalmatia's coast is Mediterranean's next Riviera and hot investment opportunity in west and east.
Ownership and legal aspects
Currently, to acquire property as a foreign entity, permission from the Justice Ministry is required, which can take up to nine months. To avoid bureaucracy, international investors normally fund a local company, which enables them to acquire real estate without waiting for permission. After Croatia joins the EU, the legal procedures to acquire property will become easier for members of the European Union.
Real property can be acquired by sale, exchange, inheritance, gift, putting into or taking it out of
a company,
liquidation or bankruptcy procedure, pursuant to judicial decisions or any other transfer of the ownership of real property.
How much cost set up a company in Croatia?
Set up company cost 1800 euro plus initial working capital which is going to be reclaimable as soon as the company is in operation.
What real property foreign citizens could not acquire?
There are areas in the Republic of Croatia in which foreign citizens may not acquire ownership of real property, like the excluded areas (Art. 358 para 1 of the Law on Property Ownership and other Real Rights), agricultural land (Art. 1 para 3 of the Agricultural Land Act), protected natural areas (Art. 40 para 3 of the Nature Protection Act), forests and forest land (Art. 1 para 3 of the Forests Act).
How much down payment should be paid at the conclusion of pre-contract?
Usually is 10% of the sales price.
Is it possible to conclude and verify a sales contract abroad?
Yes. In such a case it is the best to have it verified in a Croatian embassy or consulate, or you can give 'Power of Attorney' to a trusted person or a legal body in Croatia to sign the papers and act on your behalf in all matters relating to your purchase.
Are there any restrictions on taking money out of Croatia?
None. Most banks have internet banking facilities for your convenience. You or your Croatian company can have an account in euros or dollars rather than local currency kuna.
What are Croatian tax advantages?
These are exempted from the tax:
- bodies of national government and local government, public institutions, foundations, the Red Cross and similar charitable organizations founded according to special regulations
- foreign embassies and consulates on condition of reciprocity, and international organizations
- people acquiring real property during the process of the giving back of confiscated property, and the land consolidation of real property
- displaced persons and refugees who acquire real property through exchanging real property abroad
- citizens who purchase a residential building or a flat (including land) to which they had tenants' rights or with the consent of the person owning the tenants' rights according to the regulations through which the sale of flats with tenants' rights is governed. The same thing goes for protected tenants who buy a residential building or flat in which they are living on the basis of a lease
- persons who acquire real property in line with the regulations that govern the transformation of public ownership into other forms of ownership
- persons who acquire real property according to a contract for lifelong maintenance, the heirs being in the first line of descent with respect to the giver of the real property
- persons who acquire certain special parts of a building by the breaking up of joint ownership or the division of common ownership of property, up to the value of their joint property, or the common property before the split.
Croatia also offers important tax advantages to boat owners. As it is not as yet an EU member, Value Added Tax can be avoided if resident in Croatia.
Executive summary
Croatia represents a blend of Mediterranean and Eastern European culture and is the next candidate to join the EU, expected in 2010. Croatia is already a member of the United Nations and the World Trade Organisation as well as NATO.
Croatia is strategically located on the Trans-European Transport Corridors V, VII and X. The A3 (E70) motorway, as part of Corridor X, provides the shortest connection between Western Europe, South East Europe and the Middle East, linking Vienna with Istanbul. In comparison with other South Eastern European countries, Croatia has a good quality, modern road infrastructure, connecting all major cities.
Croatia has seen significant real GDP growth and has achieved considerable exchange rate stability. Generally the Croatian population is well educated.
INVESTING IN DUBAI (UAE)Today Dubai is one of the most popular overseas locations for expatriate professionals seeking employment opportunities in this, the fastest growing, most exciting tax free destination in the world. Approximately 800 new international residents set up home in Dubai every day.
Global commonalities: It is often said that buying a home is often the biggest financial decision in a person’s life; and the experience
can also rank very high on the emotional scale! Whether you are buying for the first time, trading
up or seeking a second home, it is still likely to be a very significant decision. However, most of the key factors influencing your decision will be similar, wherever in the world you
decide to buy: location, build quality, local services and amenities,
security and investment potential.
Dubai residents: Many people choose to buy in Dubai because they already live here and wish to move on from rental accommodation. If you are one of these people, you will be well aware of the attractions of switching from rental accommodation to investing in your own home. Thousands of families and individuals have been delighted by the opportunity to escape the previous necessity to rent and to see their hard-earned cash contribute towards their future prosperity.
Foreign visitors: If you live overseas, a business trip or a relaxing holiday (or perhaps an energetic holiday!) in Dubai may have stimulated your interest in this Emirate. You might have friends or relatives, who already live here and have shared their experiences with you. Alternatively, you may have seen Dubai featured on TV travel shows or read about the destination in lifestyle magazines.
The Dubai difference: By many means, overseas visitors are discovering the quality of life available in Dubai. Some might be seeking a comfortable and convenient base for family holidays. Others recognize the benefits of owning a home here as a potential retirement retreat. Also, many business people have identified the pure investment potential of owning property in Dubai in order to earn a favorable rental income.
A world of choice: Whether you are looking for a holiday or retirement home, or purely interested in an overseas re-rental investment, there are obviously many alternative locations to consider around the world, so what makes Dubai different and special?
- No corporate and income taxes
- No capital gains tax
- No foreign exchange controls, trade barriers or quotas
- No restrictions on capital repatriation
- 2006 GDP growth expected to be 16%
- Dubai is No. 1 business city in GCC countries, having strong investor incentive and protection and proud of having the fastest growing economy in the world
- Straight forward purchase procedure
- The fastest growing city in the region and one of the highest growth rates in the world for the last decade - Population is growing faster than any city in the developed world
- 15 million tourists and business visitors expected p.a. by 2012
- Presently, Dubai is developing the most spectacular building experiment on the planet, striving to break all world’s records in terms of: the tallest, the biggest, the largest... - e.g. Dubailand will be the world's largest tourist and leisure destination
- Multinational / multicultural society - The land of more than 180 nationalities and cultures, being a multilingual and multicultural city
- 'Can do' attitude from a forward thinking government
- 2 airports will have capacity for 135 million passengers a year
- Dubai, without any doubt, is considered to be one of the safest cities in the world
- The least corrupt city in the region
- Safe and protective environment for families and women
- One of the lowest crime rates in the world
- Strategically located at the crossroads of three continents: Europe – Asia and Africa
- Highest international standards for business, tourism and lifestyle - It is a tourism and high-class lifestyle paradise...
- Freedom from bureaucracy, freedom of living and freedom of speech
- State of the art infrastructure and world-class business environment
- After March 2007, when Law No. 7 legalized freehold ownership of land and property to expatriates in designates areas, Dubai became the No. 1 destination for investors from all over the world
How does the purchase process work?
There is fundamentally no difference in buying a home in Dubai, compared with most other long-established property markets.
Cash or mortgage?: Whether the vendor is an individual or a development company, the buyer may choose whether to pay cash or obtain mortgage finance, to spread his payments over time; non-Emiratis are allowed to finance their home in Dubai over any period, up to 15 years. To satisfy this need, several specialist mortgage companies and local banks now offer loan packages.
Previewing new homes: If you live in Dubai, or are able to visit, you can take the opportunity to take in some of the developers’ dedicated presentation centres, where you can take as much time as you wish to view scale models of the new communities, review the property brochures and ask questions from hospitable and helpful members of staff over a soft drink.
What other costs should I consider?
Service charge: Owning a new property in Dubai will generally require the owner to contribute an annual service charge, which will vary, according to the level of amenities provided by the developer. Within a specific community, the scale of these charges will normally relate directly to the overall floor area of your home.
Optional extras: You may also choose to customise your home to suit your specific needs and enhance its value further. For example, many people have installed a private swimming pool in the garden of their villa, or made modest modifications. Permissions to conduct such modifications are generally not difficult to obtain, providing safety factors are addressed and your changes do not detrimentally affect your neighbors, their properties, or the visual amenity of the neighborhood.
What if I don’t plan to live full-time in Dubai?
Absentee owners : Should you intend to spend most of your time outside Dubai, you need not worry about the maintenance or security of your home, as there is an extensive support infrastructure already in place. There is also a substantial residential rental market, which caters for the majority of the Dubai population.
Pool services: For those owning a villa with a garden, there are many facilities management companies, providing reliable services with good value for money, which can keep your surroundings in prime condition. Many families also install their own swimming pool, which can also be regularly maintained under a straightforward service agreement.
Concierge services: As you would expect, the needs of overseas owners have encouraged many full-service, property management companies to establish a presence in Dubai. Some of these companies are homegrown and some are affiliates or associates of international organizations. For the ultimate peace of mind, serious consideration of this “one-stop shop” option is recommended.
Dubai is not a dream, Dubai is where imagination knows no boundary...
INVESTING IN SLOVENIASlovenia’s variety of outstanding natural scenery, all wrapped up in a country the size of Wales, sets it apart from other emerging markets in Eastern and Central Europe.
Lesser known than other hotspots, property prices have risen at a steep rate since the country joined the EU. In 2007 Slovenia became the first former communist bloc country to adopt the Euro, further opening it up to foreign investment. Yet the influx remains more of a trickle than a torrent and there are plenty of bargains to be had for the patient buyer.
In the north-west, Slovenia’s Julian Alps have year-round appeal thanks to the skiing in winter and hiking, rafting and riding in the warmer months. In this area, Lake Bled and Lake Bohinj are both stunning with mountain backdrops, while higher up are the popular resorts of Kranjska Gora and Bovec. Holiday apartments or chalets are the most popular choice for investors here. The north-east of the country is home to Maribor, Slovenia’s second city after the capital Ljubljana.
Over 60 per cent of Slovenia is covered in trees and the landscape still harbours wild bears and unspoilt hamlets. Contrasting with the mountain scenery is the short stretch of coastline (approximately 30 kilometres). The pièce de resistance here is the Venetian town of Piran, with its Mediterranean-style beaches and pavement restaurants overlooking the sea. The capital, Ljubljana, is a lively city similar to Prague and with a large student population. Long-term rental opportunities exist here for young professionals or students. There are attractive character apartments available in the city centre, but these are limited and relatively highly priced; a more likely option could be one of the new-build developments in the suburbs, where one-bed apartments are available for under €150,000.
In all, Slovenia has a wide range of property options: from apartments in the ski areas to the old traditional houses with forests and vineyards in the wine-growing areas.
INVESTING IN TURKEYEver thought of investing in Turkey? This ancient land of stunning natural beauty and abundant resources is now actively trying to revive its historic role as the commercial link between east and west.
Besides its choice geographical placement, Turkey seems to have it all: a rich agricultural heartland, heavy industry, huge stretches of coastline on three different seas, as well as great tourism potential.
Especially now that plans have been approved for the long-anticipated Baku-Ceyhan oil pipeline, Turkey is developing into a hot emerging market. The government is actively seeking out foreign investors on huge privatization programs in the fields of energy, telecommunications and infrastructure projects. The Turkish Constitution has also been amended to allow for international arbitration - a previous lack that had scared off potential investors. All in all, the situation is becoming increasingly favorable.
Getting Started: Rules, Procedures and Limitations
To start a corporation in Turkey, or participate in an existing one, a minimum of $50,000 must be brought in from the outside for each investor. Once finances have been prepared, certain documents and applications must be submitted to the GDFI (General Directorate of Foreign Investments). This application process can be divided into three steps.
For businesses and legal entities, a Certificate of Activity approved by the related Turkish consulate must be submitted first of all. In the absence of a consular report, the business must apply in accordance with Turkey’s Abolition of the Requirement for Approval of Foreign Official Documents Agreement. Next, the entity must also submit an Activity Report covering the year prior.
For individuals, a notary-certified copy of passport must be provided, along with a detailed summary of personal commercial and industrial background, and the relevant verifying documents. Also in this first stage, the investor must submit a letter of intent, which declares that each foreign partner will bring in at least $50,000 as company capital. The draft articles of the future company must also be submitted. Further, power of attorney must be given to the individual who will represent the shareholders and serve as contact person during the application process. Finally, investors must fill out an application provided by the Turkish government.
The second step is to publish the new company’s establishment, and this must be done through direct application to the Ministry of Industry and Trade. The third step, which concerns endorsement of permission certificate, is also done through direct application (to the GDFI).
In this application, both the original of the permission certificate and the Trade Registry Gazette which published the company’s establishment must be provided. Finance receipts are also required at this point. If foreign capital brought in has already been converted into Turkish Liras, Foreign Exchange Purchase Receipts must be submitted. If the cash is being held in foreign exchange deposit accounts, related bank documents should be provided. Both of these must include the names of the foreign capital company and the foreign partner, the country of original transference, and the currency amount in USD and TL. These documents must state that the currency was brought in as company capital.
Generally, Turkey tries to encourage foreign investment by making most sectors open to foreign as well as domestic investors. In the interests of national security and health, however, some fields are restricted. For example, a foreign investor can only constitute 20 percent equity participation in broadcasting, and up to 49 percent in aviation, maritime transportation, port services and value-added telecommunications services. Real estate trading and fishing are currently off-limits. Special official permission is required to get involved with finance, petroleum and mining.
In an effort to reduce bureaucratic unpleasantry, the government now pledges that new companies can be registered in three weeks or less. The government also promises now that it only takes 1-15 days to obtain land use, planning or building permits, and that the cost of such permits is “negligible.”
Investment Incentives
Part of Turkey’s economic strategy is to create conditions amenable to foreign investors. The country thus provides generous incentives in various ways. Besides a speedy promised application process, there is a wide-open playing field (in terms of the relatively open sectors of activity). There are no conditions for approval of foreign credit acquisition, nor for approval of licenses, technical assistance or managerial agreements. There are no limitations regarding participation of foreign capital, nor regarding the number of foreigners who may be employed as managers and staff. Profits, fees, royalties and repatriation of capital (in the event of sale or liquidation) are also free and guaranteed. Further, there is no ceiling on licensing fees and royalty rates.
Another major (and classic) incentive is tax exemption. There is a catch, however, in that one must invest a certain amount of money to get them. Here, the magic number is relative, changing to reflect the economic importance of the region where the investment is being made. For this purpose, the government has divided Turkey’s territory into three economic categories. It is therefore important to know precisely where you are planning on investing.
First of all are the “developed” regions (the cities of Istanbul and Kocaeli, and the municipalities of Ankara, Izmir, Bursa, Adana and Antalya). For incentive benefits, minimum required investment here is 600 billion TL. The second area is known as the “first priority regions,” and constitutes the next fifty largest cities in Turkey (exact list to be determined by the Turkish Council of Ministers). Here, the minimum investment is 400 billion TL. Finally come the “normal regions,” which are made up of all the remaining (the more sparsely populated) areas. The minimum investment requirement here is 200 billion TL. Currently, foreign investors are exempt from customs duties and funds levies, and are also exempt from VAT on machinery and equipment, whether imported or purchased within Turkey. Investment allowance also applies.
The first exemption is designed to encourage investors to bring in the high-quality, technologically advanced equipment they might need, without being burdened by customs taxes. Of course, raw materials are not allowed to be imported, and machinery must be listed in advance, for registration with Turkey’s GDFI. The VAT exemption also aims to encourage investors needing to import or purchase locally needed equipment. Again, this equipment must be listed with the GDFI.
Investment allowance is a corporate tax exemption which deals with investment-related expenses. Chiefly, investment allowance benefits derive from buildings, machinery, freight and installation.
