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Despite banks in the US cutting interest rates to stave off a recession, confidence levels are low and are being felt as far away as the tax havens in Europe. Europe's tax havens have seen rising property prices and buoyant economies in recent years, but oil prices and a global economic slowdown could hit both Monaco and Andorra in 2008. The UK's Tory Party is producing policy statements to help them win the next Geneal Election. Their plan to reform taxation and abolish inheritance tax could affect the European tax havens of Monaco, Andorra and Gibraltar. Britons thinking of moving to Andorra or Monaco for tax feee living will find their government putting new hurdles in their way. Andorra property has had a very mixed 2007. An unusually slow start, big spenders saving the first half of the year, and the big spenders out again to give the market a late boost. Property prices in Andorra have risen consistently over the last few years. But with the same tax benefits as better known Monaco, and property in Monaco at record highs, Andorra now represents the best value full status tax haven in Europe. A good tax shelter is hard to come by, but the perfect shelter may be right in front of your eyes. Most people do not realize that that the government allows us to use our homes as a way of collecting a tax deductions, credits, and benefits. An American magazine claims Monaco is one of the most overpriced real state markets in the world... A Monaco internet site says they're wrong. Higher interest rates across Europe and a slowing property market threatened to send tax haven Andorra's house prices into reverse for the first time in a generation this year. But a good summer has edged prices up. Tax haven Andorra is beginning to take overseas aid more seriously and for the first time is beginning to give assistance to Africa. A poor year for skiing and visitor numbers has hit tax haven Andorra's economy. To add insult to injury the ski slopes have closed two weeks earlier than normal. Benjamin Franklin famously said there are two things certain in life. Death and taxes. But the little country of Andorra seems intent on proving him wrong... Andorra has seen a sharp rise in residency applications over the last two years as rival tax haven Monaco's property prices have become among the most expensive in Europe. The Andorra authorities have responded by more than doubling the residency application quotas allowed in any one year. Monaco is a fvaourite vacation spot for the rich - and now the country has a new facility for their yachts. Their favourite destination has a new shipyard specially designed for their superyachts. For a tax haven, it's a surprise move - Monaco has compiled and released her first ever GDP figures. It's part of a move to play a bigger role at the UN. European tax haven Andorra has seen a sharp rise in residency applications over the last two years as rival tax haven Monaco's property prices have become among the most expensive in Europe. The Andorra authorities have responded by more than doubling the residency application quotas allowed in any one year. A poor start to 2007 has turned to a good first half year for Andorra's estate agents, with property inflation expected to hit over ten per cent. The Isle of Man has a stable and independent legal, economic and political climate. All life assurance companies based there are closely regulated. The island is a designated territory of the UK under the Financial Services & Markets Act 2000. This means investors are protected through laws accepted by the UK authorities as being at least as effective as their own. Buying a property in a tax haven is usually done to gain residency and pay less or no tax. But property buyers in the European tax haven of Andorra have not only cut their tax bills but seen their property values rise as well. Sixteen per cent in 2006, and nineteen per cent in 2005 - what will 2007 bring? Monaco is keeping pace with London and Manhattan property prices. Further demand could see even a studio apartment breaking the million Euro level in the next year. 1 | ||
