Thinking of investing abroad? That way, you will bypass the limited offer in Belgium. A foreign investment also offers very many other advantages. In this article, we list for you the main advantages of investing abroad.
Foreign property is often cheaper
A flat in Monaco is obviously more expensive to buy than a flat in Antwerp. But you don't have to go very far at all for a smart and profitable foreign investment. For example, a 2-bedroom flat in Germany costs an average of €89,000. And for that amount, you are investing in a state-of-the-art flat located in a strong tenant market.
Benefits of investing abroad: additional rental income
With an investment abroad, you will realise a substantial capital gain in the event of a later sale. But until you get that far, an investment abroad offers a very tangible additional advantage: if you work with an experienced partner, you are guaranteed to generate a nice extra income from rentals. Not every property investment abroad is as lucrative when it comes to rental income, which is why MOMO estates chooses to focus on real growth poles; with property projects in Europe's strongest tenant markets. For example, the rental yield in our neighbouring countries is 6%, compared to just 2% in Belgium.
Tax advantages of investing abroad
Are you buying property in a country with which Belgium has tax treaties? If so, you are exempt from registration duties, property tax, rental income tax and capital gains tax in Belgium. In concrete terms, this means that you will be taxed in the country where your property investment is located. In the Netherlands, for example, you pay 12% VAT, compared to 21% in Belgium, a clear tax advantage.
Investment diversification: the golden rule of smart investing!
Investing abroad is an excellent method to diversify your investment portfolio. This is also the first piece of advice you will hear from an experienced investment advisor: opt for risk spreading by diversifying your investment portfolio. This can be done in various ways, but an investment abroad is definitely worth looking into!
A home base abroad
Apart from being a good investment, with foreign real estate you also own your own place abroad. This can be practical if you want to get away with the family, or as a pied-à-terre for business trips. Either way, your investment is also a second home, a great bonus of your investment!
Want to know more about the benefits of investing abroad with an experienced partner like MOMO estates? We are happy to advise you personally and fully tailored to your needs.