New Directives Threaten to Eliminate Tax Haven Status of Monaco, Andorra
Media reporting of an EU tax directive, effective from July 1, suggests the European tax havens of Monaco and Andorra could be under threat. Tribune Properties contend that the real incentive for people moving to Monaco and Andorra remains intact – no income and inheritance taxes.
(PRWEB) July 24, 2005 -- Media reporting of a new E.U. savings tax directive
has left many people wondering whether European tax havens could soon become
obsolete.
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," he said. "The main attraction of Monaco and Andorra
is the zero per cent income and inheritance taxes, and these remains intact and
there are no plans whatsoever to change this."
Monaco and Andorra have
long been favored 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 10 percent 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 leveling 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, fueled 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 Labor Government returned for
a historic third term with Tony Blair as Prime Minister and possible tax rises
in the pipeline, and buyers holding U.S. dollars who were hit by the rise in
value of the Euro – which has now peaked following the E.U. 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 property and real estate for
sale in both Andorra and Monaco.
To request the current availability for
property for sale in Andorra visit http://www.propertyandorra.com, for real estate and property
for sale in Monte Carlo and Monaco http://www.monacoproperty.net
Details of property for
sale in Malta are also available at http://www.maltaproperty.info and in Menorca at http://www.menorcaproperty.info
# # #
Source : http://www.prweb.com/releases/2005/7/prweb264709.htm