That's actually an excellent point. Australians can set up SMSF and hold properties in those funds for example.Kelman wrote:A lot depends on your domicile and if you remit the income into another country, but Strong Eagle's rule of thumb isn't far off. Trusts or holding companies may help, but it really depends on your specific situation.
One left field option, depending on the type of property, would be to hold them in a pension fund. Not particularly sophisticated, it can be effective.
What is the benefit of doing this, PNGMK? Is this like setting up a self directed IRA in the USA where I can buy and manage real property, and not assume any tax consequences until I withdraw money from the IRA?PNGMK wrote:That's actually an excellent point. Australians can set up SMSF and hold properties in those funds for example.Kelman wrote:A lot depends on your domicile and if you remit the income into another country, but Strong Eagle's rule of thumb isn't far off. Trusts or holding companies may help, but it really depends on your specific situation.
One left field option, depending on the type of property, would be to hold them in a pension fund. Not particularly sophisticated, it can be effective.
Super is CPF in short. You can push in funds that have a high marginal tax rate and receive a discounted rate on tax (15%) instead. The SMSF can buy and hold property (or other investments) and even borrow funds. After retirement age funds can be withdrawn at a concessional tax rate. It's not as good as the IRA fund but is all Australia has. I see a lot of multi family dwellings bought by these funds. They have taken up the gap between family trusts and private corporations for individuals.Strong Eagle wrote:What is the benefit of doing this, PNGMK? Is this like setting up a self directed IRA in the USA where I can buy and manage real property, and not assume any tax consequences until I withdraw money from the IRA?PNGMK wrote:That's actually an excellent point. Australians can set up SMSF and hold properties in those funds for example.Kelman wrote:A lot depends on your domicile and if you remit the income into another country, but Strong Eagle's rule of thumb isn't far off. Trusts or holding companies may help, but it really depends on your specific situation.
One left field option, depending on the type of property, would be to hold them in a pension fund. Not particularly sophisticated, it can be effective.
The controversial revolving Panama papers are individuals setting up holding companies, of which some to hold assets, and a handful to evade taxes. Setting up and ongoing maintenance of trust or holding companies can be expensive. It all depends on how much assets you own. If you only have 1 or 2 properties, a simple tax adviser would suffice. I also have a London property, and the tricky part is, you need to be VERY disciplined towards your tax filing. There is no letter, no communication or any sort, to remind you to do the tax filing. If you are based in Singapore (like us), it is too easy to conveniently forget to do the tax filing. This is a conscious effort that needs to be put in, for a reminder.Kelman wrote:A lot depends on your domicile and if you remit the income into another country, but Strong Eagle's rule of thumb isn't far off. Trusts or holding companies may help, but it really depends on your specific situation.
One left field option, depending on the type of property, would be to hold them in a pension fund. Not particularly sophisticated, it can be effective.
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