Question

What is the effect of the “Foreign-Buyers Tax” in the real estate market. Is it positive or negative？Why？

Answer 1

Consider a foreign citizen who is indeed willing to buy land in our country. While the transfer of property, it can be mentioned that , the foreigner has to pay additional 15% tax than the normal tax rate and this is foreign buyers tax and this tax demotivates foreign buyers from investing in the country and this is the effect of it in the real estate. This indeed is negative as it can reduce the effect of FDI in the home country as investors who seek to set up a business is effected by this.