Early Warning About Investing In Real Estate Abroad

The American dream, the European dream is that many companies consulted with investors, but the money to buy real estate is simple people?

Brokerage brokers

Trying to leave “traces” is the interest in the seminar on real estate investment in Europe, after 3 to 4 hours, the reporter received a call for advice and are invited to the event from USIS Group with lots of interesting information.

Another time, as an investor with idle money and a desire to invest in the Republic of Cyprus, the correspondent received an invitation to attend a “narrow” seminar on Cyprus real estate investment and the opportunity to receive a card. Green residence, naturalization and becoming a European citizen. The workshop was organized by Bac Son International Investment and Settlement Company, with only about 10 investors attending. All investors have pre-registered and confirmed invitations for this unit.

“Just spend a minimum of 300,000 euros to buy property in the Republic of Cyprus, investors will be granted green cards for all three generations (wife, Husband, child, parent of both sides) is naturalized and becomes a European citizen, passport validation within 3 months, nationality within half a year.

The investment policy is quite attractive with information on taxes (standard value-added tax is 19%, promotion 15% tax reduction for the first purchase of real estate, corporate income tax Low, only 12.5%). In particular, investors do not need to prove the source of money, no need to prove healthy and do not need to be present in Cyprus, the investor just puts money and the Bac Son Company will take care of the rest.

Invest in real estate abroad

There are quite a number of consulting companies, inviting domestic investors to invest in real estate abroad to issue green cards.

Not too much to say, carrying money to buy foreign property as a knife play, but certainly, the investor is the knife holder.

In a separate interview with Pacom Vietnam consultant, the reporter received the following advice: “After investing 2 – 3 million euros, he will receive rapid nationality in Malta and Cyprus (in Cyprus). Is 2 – 3 months, Malta is 1 year), other European countries are from 4 to 10 years. Cyprus is a real estate investment, while Malta is a mixed investment.

Investments in Malta in the form of government grants, non-refundable amounts (the name of the investor is over 600,000 Euros, with each case of wife, children, accompanying parents, the fee is 25,000 Then you have to buy more than 320,000 Euros of real estate, invest 150,000 Euros more to buy stocks and bonds, and you will have citizenship. “

“Investors can transfer money from a third party (with a foreign account or a private money transfer service). In addition, Pacom will also be able to apply for an investment license for a fee of 40 million + 1% of real estate value, Pacom said.

Thus, the price to become a European citizen also varies significantly with each consulting unit, brokerage.

Warning about capital safety and investment purpose

As noted by the reporter, the safety of the capital is based on the contract of cooperation but can be considered as a guarantee by the commitment of prestige.

In addition, the legal issues related to investment abroad, to the transfer of foreign currency … is not simple.

Not only that, apart from investing in real estate, investors will have to pay additional fees such as project management fees and attorney’s fees. However, even during the Bac Son project introduction, when we asked about these fees, the consultants were awkward and rather obscure in providing information. It is known that this fee is not small, there are investment programs, rates of the types sometimes up to tens of thousands of Euros.

Invest in real estate abroad

Legal issues related to offshore investment, to foreign currency transfer … are not simple either.

It is quite common for countries to introduce attractive policies on taxes, residence and citizenship. This is a policy of immigrating the rich and creating a blow to real estate in the host country. Each country has its own reasons, as well as its own legal system, but in terms of investors and management units, investing overseas, this is a matter worth the warnings.

Point 8, Article 8, Decree No. 83/2015 states that real estate is an area where documentation of the location of an investment project is required, with emphasis on Legal issues such as: “The principle agreement on land allocation, land lease, business location lease, investment cooperation agreement of competent agencies, organizations and individuals in the country. “

However, according to reporters’ observation, most investors only handle the project in the style of “travel through the small screen,” with brief, preliminary reports. At the same time, when questioning the consulting unit about the information and documents to prove the legality, the representative of the consulting company refused on the grounds … “leader to go abroad.”

In a statement about investors buying real estate for green card residence, representatives of the Foreign Investment Agency (MPI) said, “We do not accept applications and do not accept applications. To issue certificates of investment registration abroad for investment purposes to buy houses to receive “green card”. According to regulations, the issuance of certificates of investment registration abroad is to carry out investment and business activities. Organizations and individuals must have a valid dossier and have clear investment and business objectives and must fully meet the conditions prescribed by law. The agency issuing the investment registration certificate shall base on the validity and conditions as prescribed in the new grant is granted. “

The consultants are committed to reimbursement of fees in the event of failure to obtain a green card, nationality or investment license. However, many experts said that the “turnover” when cooperation is not swept cool is absolutely possible. And then, investors will fall into the chickens’ chase.

Borrow investment to create shelter

Putting aside the issues of capital, legal security, and investment efficiency, this activity also presents a great potential security risk.

Article 4 of the Nationality Law 2008, amended in 2014, states: “The Socialist Republic of Vietnam recognizes that Vietnamese citizens have a nationality of Vietnamese nationality and other regulations”. Thus, in principle, the state only recognizes each Vietnamese citizen has a nationality is Vietnamese nationality.

Talking to the reporter, Nguyen Cong Khanh, civil status expert, stated that: “In the Vietnamese territory, the law only recognizes persons having a Vietnamese nationality. In the case of investing abroad and being open for naturalization by those countries, according to the law of their country, we are not forbidden.

Firstly, investors lack everything, from information, country law, real estate market information, project … Secondly, the investor is encapsulated in two words of trust with the consulting unit.

Invest in real estate abroad

Putting aside the issues of capital and legal security and investment efficiency, this activity also presents a great potential security risk.

However, citizens with dual nationality when disputes arise, the treatment will be very complex. For those who are economically and politically criminalized, having a nationality in another country, especially those who do not carry out extradition, will make it difficult to prosecute criminals. “

Also common worry, Mr. Dong Xuan Thuan, Minh Gia Law Firm said: “With political economic crimes, the amount of 300,000 Euros is not large, even small. Their aim is not real estate or investment profit, but a safe haven when there is “turn”. In particular, if they are citizens of a non-extradited country, they will easily avoid any liability in Vietnam when they are high.

Thus, with Vietnam only recognizing citizen with a nationality, the addition of a nationality also leads to noteworthy consequences.

Talking to a reporter about his second nationality as a safe haven, a representative from the Justice Department said: “The maintenance of duality will bring barriers to law enforcement to deal with this situation, we need to sign international treaties with other countries. However, until now, Vietnam has not signed international treaties with any country to prevent similar cases.

Investing in real estate abroad, though little, although many are also real needs of people. However, in order to manage this activity, to ensure the interests of investors, ensure security and law enforcement in state management, it is not only the cooperation of many management agencies but also the management of amendments and supplements to the law. Thus, investment activities abroad are really effective.

You are reading the article “Early Warning About Investing In Real Estate Abroad” in the section “Real Estate News” on the website: https://realestatevietnam.com.vn/.
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