Evening Standard – 28 July 2004
Change of a lifetime
Brits seeking the sun and a new lifestyle are buying homes with incomes abroad. David Spittles finds some exciting opportunities, but advises caution
Enterprising Britons searching out business opportunities abroad are spreading their wings. The second-home hotspots of mainland Europe are still popular but, increasingly, people are taking money out of their UK property and setting up in places such as the United States, Australia, Canada and Caribbean.
“There is something remarkably global about people’s relocation aspirations,” says Marcus Markou chairman of BusinessesForSale.com, a leading website that lists 14,000 enterprises in 80 countries. “The world seems so much smaller, and people are willing to move thousands of miles to start a completely new life.”
“Brits appear to be leading the way. This has only happened in the current generation. Sometimes they go to the most bizarre places. One Londoner recently bought a car-wash business in Hawaii, and we have had quite a bit of interest in a 50,000 acre safari ranch in Kenya.”
Normally, the preference is a small lifestyle business such as a hotel, guesthouse, or restaurant, where owners can live on the premises and generate an income from tourists or other expatriates
Most people are novices: more than 70 per cent have never bought a business before, adds Markou. So obtaining independent legal and accounting advice is crucial. Acquiring business premises can be complicated enough and there are tax and employment issues.
In Spain, for example, the purchaser of a business takes on any tax debts of the former owner and is also liable for past social security obligations to the employees. BusinessesForSale.com has a resources box on its website with links to relevant contracts, such as chambers of commerce and immigration services. While buying a business within the EU should, in theory, be easy, it can be more straightforward to go further afield. Some countries are eager for investment and business expertise and encourage foreigners by offering visa concessions.
In the US, for example, UK tourists and property owners can stay for only six months a year. However, it is possible to gain full residency status by buying into an existing business. “Pure investment is not enough; you have to participate in the company to qualify says Howard Thorne of Homes America, an estate agent and immigration specialist.
Britons need to put a minimum of $100,000 (about £57,000) to gain a special E2 visa. This is granted for five years and can lead to the sought-after Green Card, which confers US citizenship.
It is also possible to gain an E2 visa by setting up a new business (which could be a property rental company). By investing at least $1m (about £567,000) and employing 10 or more Americans, a Green Card is available almost immediately, adds Thorne.
As long as the business is running you are entitled to live and work in the country. Homes of America has links with Florida estate agents, attorneys and accountants. Visa applications normally take about three months to process. Thorne offers a service that costs about $5,000 (about £2,800).
|
