New Business proposition: Renting tier to EU residents

((Starting a new thread to stay out of the overall tax rant))

Given how things are now, this is a new market to people locate outside of the EU: Renting out tier.

Assuming I need tier for half a sim, so far I paid US$ 125 per month. Now (assuming a 17.5% tax rate) I'll have to pay US$ 146.88. That's about 1.24 L$ per sq per month.

Since any non-EU av may still have tier available at old rates, I believe anybody offering to contribute tier to a group at a rate of, say, 1 L$ per sq per month should be able to do brisk business now.

Overall this seems a good way to make easy money. Using a premium alt, tiering up to a whole sim's worth should bring a profit margin in the 20% ballpark.

$1L per meter is too high, in my opinion. I've had a tiny bit of tier available for a while. I would not charge more that $L.25 a meter.

if it would only work for an island....

Raymond, I agree. It sucks

But see it from the buyer's side (using 1/4 region as an example):

Option 1 - paying tier: US$ 75 per month for 16,384 sq ... that's 20,700 L$/month if you buy in-world

Option 2 - renting tier: 16,384 L$/month for the same ... saved 4,316 L$/month

As for the seller: He is paying to LL US$ 201.00 ($195+$6) per month or L$ 55,476 ... and has available 65,536 sq to rent out. Everything on top of .85 L$ per month per sq is pure profit.

If only I were located in the US! I'd be registering alts like h*ll by now ....

I got the figure from someone else and thought it was .25 per month but it was per week, so I deleted my erroneous post. Your original estimate was correct as far as what I would charge a month. I suck at math...

with 1l/meter it is some 250US$ on top of what is now.
I'd rather pay the VAT myself . It's more easy and cheaper

Oops ... I forgot the infamous VAT ... in fact the saving is 7,939 L$/month assuming a 17.5% VAT rate!

Gahhh. What is a fair price to charge per week for tier? Help this math impaired person, please.

I have no idea what Brazil is paying (can't be anywhere in SL ), but simple math says:

Monthly premium fee: $6.00
plus monthly tier for 65536 sq: $195.00

Total per month: $ 201.00 or L$ 55,476

Broken down per sq: .846 L$/sq/month (55476/65536)

That's the at-cost minimum. Any price reasonably above that would be fair. Doing the math at my end (in the EU) I'd feel very comfortable with someone asking for 1 L$/sq/month or .25 L$/sq/week, if you like.

my mistake. i thought 1l on top of what i pay now for tier.
But again, you just give a relief of what? 0,015l/meter

if you put the vat on .846 l/sq.meter it is just going a bit over what you suggest.

I tell you what is going to happen. this is not going to work like this. Many have friends here that can help them get out of the situation and give this for free and not for a ripoff as you suggest.

Point is that in all cases TRUST must be in place. You should find someone you trust completely.
Anyway, since 1/3 of sl resident seems to be europeans, this is bad news. ANd for sure it will hurt business. first thought i had was to dump all and quit . Can't compete anymore

I did the math. In my case

as said 6U$ premium fee
sim 195 U$
total before vat 201 US$


Vat applied to me 19%
total 241.2 U$

That's my cost now.
Now let's think who will trust anyone here for just a 1 or 2 or 5 or even 10 US$ relief per sim.
It's just a killing for all europeans doing land business. Hapiness for all the rest due to elimination of competition.

$195 was already pushing it. So sorry, Brazil. Hope this thread gives you a glimmer of hope: /327/b4/213363/1.html

If it's any consolation, I think any shadenfreude will be short-lived: this is disastrous news for the land market on both sides of the pond. Imagine if BC actually were to liquidate all holdings on some self-imposed deadline. Some non-EU speculators will step in, but at what price point, with all the accumulated uncertainty about demand now? I'm not waiting for a free-fall to below-cost prices, but I really don't see where this market will find support.

I already rent tier for 0.25/sqm/week to a number of people. We'll be continuing to do that. So if anyone is interested just drop Skye Whitcroft or I an IM.

Actually, if you're selling land to an EU citizen, it's just as if you were LL..

Ie, YOU have to collect and pay the VAT.

Any European landlord you're outcompeting will be quick to point you out to the authorities. Schadenfreude works both ways, after all.

Sorry

In the VAT FAQ, Linden $ transfers between residents are not taxable. So if you rent your land/tier in L, you do not have to worry about collecting taxes.

If anything will trigger government investigations into the L$ having real value, it's this.

The way it's being claimed,
EU residents buying land from LL will pay 17.5% more;
Anyone renting a land from a EU landlord will pay 17.5% more (because they have to cover the increased cost);
EU residents renting land from US users will pay 17.5% more (because they pay it when they buy their L$);
EU residents renting from EU landlords will pay a whopping 38%(!) more because they pay twice, once when buying their L$ and the other in higher L$ prices to their landlord.

Also, will LL be allowing VAT-registered EU businesses to register for exemption? It really needed to give them the chance to do that _before_ taking the tax on their tier fees..

Nice idea.
It will not work, because to pay you, I need Linden dollars, which I would need to buy with my credit card, for which I have to pay VAT.

All europeans should think seriously if they will continue to hold land after the first illegaly charged tiers with VAT (no warning charge is illegal in EU). Especially the land traders and more specific those in Mainland. Guess also what. I am in EU.

They could report me to the EU all they want, the EU can kiss my ass.

All I want to know is how is your url still clickable on the forums? What's your secret!!!