Investing in cheap countries can be a great idea. If you are a savvy investor, you’ll know how to identify and capitalize on opportunities in these countries.
Despite the political tumult and economic and financial tensions in China, foreign multinationals continue to invest there in record numbers. Investments in the country are increasingly geared towards making China globally competitive.
A new report by the United Nations titled “Asia-Pacific Trade and Investment Trends” reveals that the world’s largest economies are rethinking some of their protectionist policies. These include the creation of special trade zones, which allow tax breaks for overseas investors.
China also has a number of policies that can help foreign investors, including a preferential corporate income tax rate of 20 per cent for companies with an annual taxable income of less than RMB 1 million. These companies can also benefit from reduced income tax rates, import duty fees, and land use fees.
Investing in Spain is a solid choice, especially since prices are low and the housing market is healthy. This is a prime reason why so many foreigners make the move.
Spain has been a popular holiday destination for decades. The country also boasts one of the warmest climates in Europe. Moreover, the cost of living in Spain is among the lowest in the EU.
The main benefit of buying property in Spain is that it offers a high ROI. The cost of living is also low, making it a great place to retire. In fact, retirees in Spain can live on around $25,000 a year, which is a very affordable price.
Compared to other West European countries, the Czech Republic is one of the cheapest countries to invest in. In fact, it ranks 41st in the World Bank’s Doing Business Report in 2020.
Its multiparty system was relatively stable during the transition to democratic rule. But the country’s political climate became polarized in 2013. The anti-establishment forces, including the Civic Democratic Party (Smer), now hold 61% of parliamentary seats, while the two long-term dominant parties, the Communist Party and the ruling Social Democrats, have lost their positions.
The Civic Democratic Party partially rebounded in the parliamentary elections of 2017, but its position was weakened by scandals. The parliamentary opposition is led by the Pirate Party, a left-wing populist movement, and Tomio Okamura’s radical-right parties.
Located in Central Europe, Hungary boasts a strategic location and easy access to the European Union. It has also experienced one of the highest growth rates in the region.
The government’s investment-friendly economic policies have helped propel Hungary’s economy. There are numerous incentives to overseas firms, including tax allowances and cash subsidies. However, there are also challenges that international companies face. The government sometimes favors domestic companies over foreign ones. Moreover, there are spurious regulatory challenges.
The lack of qualified labor is a major obstacle to investment in Hungary. A number of multinational franchises have reported pressure to sell to government-affiliated investors. The conflict in Ukraine has also been a major impediment to growth.
United Arab Emirates
Located on the Arabian Peninsula in the Gulf of Oman, the UAE is the largest of the seven emirates. Its economy is primarily based on petroleum produced in the Abu Dhabi emirate.
The UAE has a long history of economic growth. Its leaders have focused on attracting foreign investment for decades. They have succeeded in this area. In fact, the country ranks near the top of the World Economic Forum’s competitiveness index.
The United Arab Emirates has some of the world’s largest hydrocarbon reserves. It also has a booming tourism industry. The United Arab Emirates attracts millions of visitors each year. A large number of these travelers are expatriates, making the country a popular tourist destination.
Despite the economic downturn in Mexico, it remains one of the world’s most attractive destinations for foreign direct investment. As a member of the G20 and Pacific Alliance, Mexico has access to markets in important economies around the world. Moreover, its diversified economy and open economic policies attract foreign investors.
In addition, Mexico’s economy is well integrated into the world economic order. It has an active network of free trade agreements with more than 35 countries. The economy is expected to grow by about 2 percent over the next few years.
In the last 10 years, foreign direct investment in Mexico has performed very well. In the period 2011 to 2021, the country saw around 300 billion dollars in FDI.