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Euro Tax Haven Threat |
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by: Roger
Munns |
Media reporting of a new EU
savings tax directive has left many people wondering whether
European tax havens could soon become obselete.
The July
directive requires banks throughout Europe, including low and no tax
areas such as Gibraltar, Monaco, Malta and Andorra, to disclose bank
account owner information to their home country?s tax
authority.
But Roger Munns, Managing Director of tax haven
property specialists Tribune Properties, says that some of the
reporting has been less than accurate.
?The purpose behind
this directive is primarily aimed at those who hold illicit funds,
such as drug dealers, who will need to look outside of the European
banking system to place large cash deposits. The main attraction of
Monaco and Andorra is the zero per cent income and inheritance
taxes, and this remains intact and there are no plans whatsoever to
change this.?
Monaco and Andorra have long been favoured
destinations for the well to do, but with new technology allowing
businessmen and women to run their offices from anywhere in the
world, operating from low tax bases has seen added interest for
Europe?s primary tax havens, doubling property prices in the last
ten years.
Both Monaco and Andorra are outside the EU, and
their signing of the directive voluntarily is often overlooked in
the media?s analysis of any effects on the two small countries long
term popularity.
Property prices have risen steadily over the
last decade, often topping ten per cent a year, but this year has
seen a slow down of that increase.
Property Price
Uncertainty
Both Monaco and Andorra?s property prices have
seen a levelling off this year, according to Tribune Properties, but
say this can be explained by factors other than the new EU
directive.
Tribune say that in Monaco the passing of Prince
Rainier earlier this year cast a shadow over the Principality, while
in Andorra the local market has slowed as Andorrans struggle to keep
up with the price of property, fuelled by buyers from around the
world seeking residency.
Two other factors have contributed
to the slow down in the first half of the year which could be
reversed in the second half ? the absence of UK buyers awaiting the
outcome of their election in May which saw the Labour Government
returned for a historic third term with Tony Blair as Prime Minister
and possible tax rises in the pipeline, and buyers holding US
dollars who were hit by the rise in value of the Euro ? which has
now peaked following the EU Constitution ?No? votes in France and
The Netherlands in June.
Both Andorra and Monaco require new
residents to live there for six months a year to maintain their
residency (but Andorra doesn?t police this once residency is
granted). Andorra property prices start from just over 200,000 Euros
for a one bedroom apartment, while Monaco is more expensive with one
bedroom apartments from around 600,000 Euros.
Tribune Properties
offer details of properties for sale in both Andorra and Monaco. For
Andorra property visit http://www.propertyandorra.com/ , for property and
real estate in Monaco and Monte Carlo http://www.monacoproperty.net/ Tribune also offer
to e-mail current property for sale in Malta at http://www.maltaproperty.info/ and property in
Menorca at http://www.menorcaproperty.info/
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