What if Non-Resident Doesn't Pay Local Tax?

[Silvio]

Hypothetical question: Let's say a non-resident buys a property in a European country.

The non-resident sells the property few years later and makes a profit.
The non-resident simply doesn't pay the tax on the profit and leaves the country.

What can the tax office do? Will they chase you to the country of residency\citizenship?

Let's assume for question's sake that it is a strong\aggressive EU country (France\Italy\Germany\Sweden etc).

 

[karishi]

If you are a non resident, you pay taxes in the country where you are currently resident or in your original country of citizenship. I don't think that there is a problem if a UAE citizen buys a property in Italy and sells it for a profit, this is not an issue for the italian government. If your buy/sell behavior looks more like a business, you need to open a company in Italy to conduct that business. I don't know the specifics, or what they can / can't do, this is just my thought and can be 100% wrong, but it's clear that at some point you cross the line between personal investment to business and you will need to create a company. Netflix still doesn't have a company in Italy and they sell a product to millions of italians, but that's an edge case. If you buy/sell property like a business they will have ways to force you into having a proper company structure

 

[Silvio]

So in multiple EU countries you can buy a property, and then need to wait 5-10 years until you sell in order to not pay tax.
If you sell before these years have passed, you definitely need to pay tax on that profit in the country where this profit was generated- local tax as if you earned income by renting the property.
So your answer @shikari I don't think applies here.

 

[karishi]

So in multiple EU countries you can buy a property, and then need to wait 5-10 years until you sell in order to not pay tax.
If you sell before these years have passed, you definitely need to pay tax on that profit in the country where this profit was generated- local tax as if you earned income by renting the property.
So your answer @shikari I don't think applies here.

possible

 

[MrYellow]

Most European countries charge a tax for speculation of sold within 10 years or less. But exact rules vary let country to give precise answer its necessary to understand the country where the real estate is located.

 

[JackAlabama]

Hypothetical question: Let's say a non-resident buys a property in a European country.

The non-resident sells the property few years later and makes a profit.
The non-resident simply doesn't pay the tax on the profit and leaves the country.

What can the tax office do? Will they chase you to the country of residency\citizenship?

Let's assume for question's sake that it is a strong\aggressive EU country (France\Italy\Germany\Sweden etc).

eu is not stupid when they want sack your money.
Oftentimes they just sack the tax due when you sell and a portion goes straight to tax and you have to claim excessive tax.
Others like spain in barcelona tells you a minimum sell price you have to pay tax. etc.

 

[Silvio]

eu is not stupid when they want sack your money.
Oftentimes they just sack the tax due when you sell and a portion goes straight to tax and you have to claim excessive tax.
Others like spain in barcelona tells you a minimum sell price you have to pay tax. etc.

I have never heard of a country in EU claiming tax in the moment of the sale.
I know for a fact of someone that did this in Germany, bought and sold through an offshore company and paid no tax, just killed the company afterwads (I don't know what happened to him later).
Germany is a super aggressive when it comes to tax and even they don't do such a thing, you can sell whatever you want and then file your taxes at the end of the year.