Real estate is one of the safest investments and it is one of the most efficient ways for diversification of the investment portfolio. Investment in real estate has a steady flow of cash from rental income or long-term financial security if you keep the asset for capital appreciation as property prices on average increase every year. Moreover, investing in real estate is one of the best ways to hedge against inflation and has a variety of tax benefits such as reduction of tax income from capital allowances and loan interest exemption from investments in real estate.

 Having all your real estate investments in one country you are expose in high risk, threats such as inflation, economic crisis, recession, political corruption and decrease in returns within the country are reasons to negatively impact your investments. One of the most efficient economic ways to avoid those risks is to invest in real estate abroad and diversify your investment portfolio and internationalize your life as well.

Benefits of owning a real estate abroad, why it is important to invest in real estate abroad!

  1. The most important reason for owning real estate abroad is to earn higher returns. For example, real estate investments in the UK have approximately on average 2% to 3% return per annum compared with Cyprus which revenue from rental returns from real estate investments are approximately 4.7% to 5.6% per annum which is one of the highest yields in Europe.
  2. Having properties abroad minimize investment risk by avoiding any risks that your local country is facing. If you have all your eggs in one basket and the basket falls then you lose everything. By investing in real estate abroad the eggs are no longer in one basket, but they are scattered into many baskets thus you reduce the risk.
  3. The investment does not depend on one currency. Investing only in your local country means you have all your money in one currency, and you are in mercy of one economy which is risky.
  4. You can benefit from the changes in currency rates. For example, if £1 equivalent to €1.17 means that if you spend £100.000 you can buy a property in a European country with the amount of €117.000. If the euro is undervalued, then you can buy more euro (€) with the same pounds (£). For example, £1 equivalent to €1.30, thus with the same expenditure of £100.000 you can buy a property in a European country with the amount of €130.000.
  5. Travel cost to manage and visit the investment properties overseas is tax deductible for most counties.
  6. Managing investment in real estate abroad is not hard. You just must hire a property management company and they will be responsible to maintain and repair the house, collect the rent, pay the taxes, and find tenants. You will just enjoy your passive income each month without doing anything important.
  7.   If someone makes a lawsuit against you then it is much easier to claim the investment property in your local country, compared with a property overseas thus you have advantage of international asset protection.
  8. In some countries, you can even get a residency visa or passport out of your real estate investment. For example, if you live outside Europe, then by owning a real estate in a European country you can get a European citizenship with all the benefits included, such as benefits for education, health, employment and traveling easier.
  9. Foreign countries might have lower capital gain tax and more income tax exemptions compared to your local country. Tax exemptions such as maintenance repairs, insurance, property taxes and legal fees which is a very important tax benefit as you will pay less tax charge from your passive income from the investment in real estate abroad. The mortgage interest also might be tax deductible if you buy the property for future retirement or residence.
  10. Owning property overseas gives you the opportunity to live part-time in the country you own the property or retire there. Cost of living in your local country might be high compared with your income. Thus, an efficient way is to live part-time or retire in a beautiful and peaceful country with lower cost of living.
  11.  It is an opportunity to meet new people, learn new languages, expand your connections, travel more, and see new places and cultures.

There are plenty of benefits of owning a real estate abroad. It is one of the most efficient economic ways to diversify your investment property portfolio, increase your return, protect your assets and benefit from tax exemptions and reductions. It is also a great opportunity to change your lifestyle by owning a second residence in a cheaper and more peaceful country and retiring or doing holidays there. If you want to benefit from all the above, then our experts have the competence to advise you and provide you with an effective investment plan in real estate. 

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