Buying, selling or simply owning real estate in different countries will give rise to tax issues.
Tax is going to be important both in the country the property is located, and that in which the buyer/owner is located. Tax will be a significant part of the cost on purchase, and, in many cases, on sale too. Tax will inevitably have to be paid during the time the property is owned. This can make the right ownership and financing structure critical for tax purposes. It is also important to know what the tax compliance obligations are.
We work with property investors and developers on both their existing and planned real estate assets. When they are considering a purchase, then we’ll look at how they want to hold that property interest in their home country, and how they will be financing the purchase. We work with the business or the individual to make sure that is then structured in the best way for them.
We also look at the best way to hold a property (compatible with the buyer’s intentions) in the country where the property is located. If necessary we will also look at intermediate entities between the investor’s investment vehicle (if any) and the property owning entity. The aim is to make sure that all tax compliance obligations are met. At the same time it is important to ensure that the return is maximised for the investor with, as far as possible, minimal impact on cash flows.
Where a business or an individual already owns property in a country, we can help them manage their tax compliance obligations there, including making sure that they claim any appropriate reliefs. We can also review existing property ownership structures. If these have been in existence for some time then that may no longer be relevant for the owner’s needs. Also as governments round the world are seeking to maximise their revenue, structures may need to be changed to deal with changes in tax law.
As well as working with private companies, funds and individuals , we do also work with property agents to help them enhance their service offering for their client base. Our Real Estate leaflet gives a little more information on what we do.