If you are looking at ways of securing your retirement then one popular trend that keeps on growing is investing in property overseas using your personal pension fund, also known as a SIPP property investment.
Pension regulations differ for different pension funds and some pension funds can be used to purchase property. Typically a property overseas is bought and sold using a SIPP pension fund and any profits and gains are then taxable as a pensionable income. A SIPP (Self Invested Pension Plan) is the most tax efficient way of using your pension fund to build up a portfolio of property investments.
When looking to invest in overseas property using a SIPP it has to be commercial property and cannot be property that is buy to let property. Certain FSA requirements must be met when using your pension fund to purchase SIPP properties. This is because different SIPP pensions will require different amounts of information with regards to different developments in different countries. This is also the safeguard before your money is invested in a SIPP property. By having to comply with all these FSA guidelines, you have that extra peace of mind that any SIPP property you are using your pension to fund will be a safe investment.
Currently countries including Brazil and Barbados are popular destinations for purchasing a SIPP property. A number of newly developed resorts are being constructed each with luxury 5 star properties. These resorts are located in exquisite locations offering breath taking and spectacular scenery, fantastic all year round weather and facilities including:
- Luxury spas
- Sports academies
- High tech fitness centres
- Beautiful beaches
- Renowned restaurants.
The Caribbean is one of the most popular destinations for purchasing overseas property as all properties are SIPP compliant and SIPP approved making them safe investments. These entire Caribbean SIPP properties offer guaranteed 10% rental income for two years with 30 days free usage per year. Investing in a SIPP property also provides a tax benefit as no capital tax gains apply to a SIPP investment
Overseas property investment using a SIPP is an area that is complex and one which requires professional advice. Experienced wealth management consultants can provide you with all the advice and guidance that you need when looking at SIPP property investment as well as provide an assessment of your current pension fund to see if it can be transferred to a SIPP.
Tags: Investment Abroad, Overseas Property Investments, Pension Investment, Property for Investment, SIPP Investment, SIPP Pension, SIPP Property
