Romania land for sale, 20% per annum compound return on investment, SIPPS compliant
Thursday, May 29th, 2008 Posted in Overseas Travel, Overseas Property Exhibition, Romania, Overseas Investments, Romanian Land | No Comments »Outstanding Investment Opportunity: Romanian Land
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20% Per Annum Compound Return On Investment
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Return Of Capital Prioritised
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2-4 Year Investment Period
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Low Risk Investment In Land For Development
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Rapid Economic Growth In Romania
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Meeting Huge Demand For Primary Housing
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Tax Efficient
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Legally Secure
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Available Through Your Pension Fund
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Minimum Investment 30,000 Euros
10 Facts About Romania
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Similar size to Britain, 12th largest country in Europe with population 23m (Britain 60m).
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7.8% GDP growth in 2006, 6.7% in 2007. EU average 3% and 2.9% respectively.
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Entered EU in 2007. Euros 30 billion EU funding promised by 2013, highest of all new members.
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Recent massive foreign investment, E.G Nokia and Pirelli, plus Ford commitment to invest $1 billion.
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Politically stable. Power shared between President and Prime Minister.
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Strong home ownership culture: 97.7% of homes are owned.
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Mortgages only available since 2000, with mortgage debt only 2% GDP (Britain 80%).
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61 Airports, of which 7 are international.
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116 Universities.
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90% of professionals speak English.
Land Strips and Re-Zoning
Post communism land was returned to Romanians as restitution for its previous confiscation. The land was divided into small strips, which have limited individual value. Many owners are therefore keen to sell them. Town councils in growth areas are in favour of the consolidation and re-zoning of land strips, to meet the demand for land for new housing. Our local experts, with proven experience of this process, buy most suitable land strips, consolidate them into larger plots, and work with local authorities to re-zone them for development. Where appropriate we add utilities, and then sell to developers. Very substantial land value growth is achieved.
How Does It Work?
Foreign investors cannot acquire Romanian land in their own name. However, they can own a local company that owns the land. Investors initially transfer funds into a secure UK client bank account, set up soley for this purpose. The team identifies specific land acquisition projects and confirms the funding requirement. Funds are allocated to projects in the order they are received from investors. When the funding requirement on a project is met, monies are transferred from their client account to an investor-owned Trust Company. Each investor is entitled to a share in that company’s assets proportionate to their funds invested. The Trust Company passes funds to a local Romanian company, controlled by Avanti and set up exclusively for the specific project. One local company is formed for each land project, and will hold the land it acquires on trust for the Investor owned Trust Company. The local company enters into agreements with our Romanian experts, who manage the process from buying and re-zoning the land through to sale. When the land is sold the local company pays the net proceeds to the Trust Company, which repays investors their capital plus the return on their investment.
Tax Efficiency
There is no tax liability in the investor owned Trust Company. Romania has a flat rate of tax of only 16%. UK taxpayers can claim double taxation relief, and offset Romanian tax paid against their personal liability. At current CGT rates of 18%, the maximum UK tax liability will be a further 2%.
Who Is Eligible To Invest?
Individuals can invest direct or via offshore accounts. Pension Funds can be invested, via a SIPP. This eliminates UK capital gains tax, and income tax on funds invested can be reclaimed.
Investment Return
Consolidated land parcels will not be sold until the appropriate investor return is guaranteed. Projected returns are 20% of investment per annum, compound. The investment has a projected 2-4 year period. Returns accrue from the date Avanti receives investor funds, not the date they are utilised. The return of capital to investors is prioritised, minimising investment risk.
For more information telephone +44 (0) 1903 500 004 or e-mail mike.bradley@new-horizons.eu.com