You can set up your tax system so that you raise a lot of public money from foreigners using your real estate. Be that Chinese tycoons parking their money in London apartments, or digital nomads renting a large house in the countryside.
It's really straightforward: a high enough property tax will do it automatically. Or if you want to get fancy, use a land value tax, which is like a property tax, but you get a discount for the value of the building.
Between "renting an empty house in the country" and "buying a flat to park money", there is a major difference IMO. The second scenario pushes up housing costs for locals and is almost certainly not a good deal for the host society.
Even the first scenario will fuel inflation, especially given the typical spending power of rich foreigners. It's complicated.
> Between "renting an empty house in the country" and "buying a flat to park money", there is a major difference IMO. The second scenario pushes up housing costs for locals and is almost certainly not a good deal for the host society.
Developers are happy to produce more housing, if there's demand and construction is legal.
Why is producing widgets to sell to foreigners (=exports) generally seen as a good thing, but producing housing to sell to foreigners is seen as bad?
> Even the first scenario will fuel inflation, especially given the typical spending power of rich foreigners. It's complicated.
You can set up your tax system so that you raise a lot of public money from foreigners using your real estate. Be that Chinese tycoons parking their money in London apartments, or digital nomads renting a large house in the countryside.
It's really straightforward: a high enough property tax will do it automatically. Or if you want to get fancy, use a land value tax, which is like a property tax, but you get a discount for the value of the building.