Brazil Property News: IFAs integral to foreign property investment




17th October 2007 02:26


Talking to an independent financial advisor (IFA) is integral to buying a foreign property, according to industry analysts.

Property investors considering buying property in lucrative markets such as Brazil should discuss the tax implications, capital gains tax and the effect on their overall financial affairs with an IFA, says the ifs School of Finance.

Mark Roberts, head of financial regulation for the charity which educates financial services, professionals and consumers, explained why this was so important.

"If the customer is eager to invest in overseas property then the likelihood is the IFA would be promoting the best ways of the funding of the purchase," he said.

Mr Roberts added: "[In] the majority of cases in which people have found themselves in [an] unfortunate position, they haven’t sought any independent legal advice or any specialist estate agent advice."

Brazilian property laws offer foreign investors who are not domiciled in a tax haven the ability to receive tax benefits by applying for Resolution BACEN 2689.

There is no property tax in Brazil and it does not have a double taxation agreement with the UK.

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