PROFIT FROM THE NEW VAT LAWS
If you put a deposit down on a condominium before the end of the month, says Eduard Hempel, Director of Tamba Villas, “you can immediately profit from it.”
After the 1st of April, any condominium buyers will have to pay 15% VAT on top of the purchase price, therefore all condominiums are about to go up in price.
If you move quickly, and get a deposit down and registered before the 1st of April, you won’t have to pay the VAT. Not only that, but when you come to resell, your buyer won’t have to pay VAT, so that difference in price between a new condominium and yours will be a profit to you.
Are prices about to rise otherwise? “Well”, says Eduard, “the other important announcement in the budget is that foreign buyers will get three years residents visas if they buy a property for more than $400,000 USD. If that doesn’t drive demand, I don’t know what will.”
To add icing on the cake, “We are offering to pay the airfare of up to $500 USD for foreign investors flying in to visit us, provided they put down their deposit before the deadline.