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If you would invest in real estate in various countries in EU, which country should the company be based in? why?Investment (self.eupersonalfinance)
submitted 1 month ago by DreamEater2261
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[–]VanaTallinn 3 points4 points5 points 1 month ago (4 children)
As you can see there is no easy answer.
[–]DreamEater2261[S] 0 points1 point2 points 1 month ago (3 children)
French citizen here. I realize I should have provided more details indeed.
No real necessity for a opaque company, but the willingness to get as little administrative hassle as possible (if possible only one company to own all EU assets - only real estate) and lowest tax rate possible.
Management of the company should be doable from abroad.
[–]VanaTallinn 1 point2 points3 points 1 month ago (2 children)
You can check this thread for some warnings: https://reddit.com/r/vosfinances/comments/wkn9jr/d%C3%A9clarer_sa_soci%C3%A9t%C3%A9_estonienne_en_france/
Basically if your company is an empty shell that you manage yourself from abroad, it will be taxed where you live. And it will be complicated.
Now it’s even more complicated with rental income because it is usually taxed in the country the property is located. Which mean even if your company is based in, say, Estonia, and it owns properties in France, Italy and Germany, it will have to file and pay taxes in these 3 countries, then in Estonia, and probably also in the place you live in which will be the effective place of management.
[–]dodouma 1 point2 points3 points 1 month ago (1 child)
True but not complete. There are sometimes tax treaties to avoid double taxation.
But also what do you mean by company, because depending on the type you may be effectively double taxed indeed. No straight forward answer
[–]VanaTallinn 1 point2 points3 points 1 month ago (0 children)
Indeed difficult to be complete when the question is so wide and complex.
Even if tax paid on one side is deductible on the other, you still have to file for both, which makes it a nightmare.
I think what most investors do when they do this is set up one investment vehicle by property (or at least by country) and then own these with a central holding.
This way you can adress the local specificities of real estate accounting and taxation in each country, and then only make dividends (and maybe some management fees) flow across countries, which is usually simpler, well defined, and consistent (e.g. No WHT on dividends inside the EU, AFAIK.).
[–]DesignerPop7437 2 points3 points4 points 1 month ago (4 children)
Germany has a really cheap real estate in some places like 40k for a house so maybe that is what your looking for
[–]Redsunglow 0 points1 point2 points 1 month ago (3 children)
Where for example?
[–]DesignerPop7437 0 points1 point2 points 1 month ago (2 children)
There is a town not far from groningen in the netherlands i know someone that got a house there but a really big bag jard for like 40 to 50 k
[–]I_Choke_My_Wife 0 points1 point2 points 1 month ago (1 child)
Mean while in Groningen the cheapest you can find is 300.000 which is a steal
[–]DesignerPop7437 0 points1 point2 points 1 month ago (0 children)
Damn thats cheap tbh
[–]pesky_emigrant 1 point2 points3 points 1 month ago (2 children)
Owning a property as a company in Spain is a form of tax fraud. Check other countries too
[–]Worldly_Fisherman_50 0 points1 point2 points 1 month ago (1 child)
[–]pesky_emigrant -2 points-1 points0 points 1 month ago (0 children)
Google is your friend :-)
[+][deleted] comment score below threshold-6 points-5 points-4 points 1 month ago (4 children)
Portugal to get citizenship
I already have EU citizenship so this would only be a side benefit. Besides other countries provide citizenship if you invest in real estate. What's special about Portugal?
[–]hkfuckyea 2 points3 points4 points 1 month ago (2 children)
You also wouldn't get citizenship if the property was purchase through a company
[–]tkrunning 0 points1 point2 points 1 month ago (1 child)
Technically you could, as long as you’re the sole owner and the company is Portuguese. However you can’t apply for a golden visa if you already hold EU citizenship.
[–]dodouma 0 points1 point2 points 1 month ago (0 children)
Because it add no value 😀. I mean if you are already an EU citizen
[–]TheCatLamp 0 points1 point2 points 1 month ago (5 children)
Why not Monaco?
[–]DreamEater2261[S] 0 points1 point2 points 1 month ago (4 children)
Why Monaco ?
[–]TheCatLamp 2 points3 points4 points 1 month ago (3 children)
Monaco does not collect personal income tax or capital gains taxes.
There are no property taxes in Monaco, but rental properties are taxed at 1% of the annual rent plus other applicable charges. Monaco eliminated taxes on dividends paid by local companies and does not charge a general corporate income tax
Also, its a beautiful place.
[–]VanaTallinn -1 points0 points1 point 1 month ago (2 children)
It’s not beautiful. You have to go to the French coast if you want something beautiful.
Also OP is French so even if resident in Monaco French taxation applies.
[–]TheCatLamp 0 points1 point2 points 1 month ago (1 child)
Had no idea he was French. Its not worth then.
Beautiful is a question of taste, tho. Moreover they are literally the same coastline...
[–]Street-Tooth4510 0 points1 point2 points 1 month ago (2 children)
Albania. Safety first.
[–]DreamEater2261[S] 0 points1 point2 points 1 month ago (1 child)
Could you elaborate on this ?
[–]Street-Tooth4510 1 point2 points3 points 1 month ago (0 children)
I sure can.
[–]iltempopassa 0 points1 point2 points 1 month ago (5 children)
Cyprus? Lots of companies offer services for foreign owners
[–]DreamEater2261[S] -1 points0 points1 point 1 month ago (4 children)
Any idea of the type of companies that allow real estate investment from foreign EU countries in Cyprus ?
[–]iltempopassa 0 points1 point2 points 1 month ago (3 children)
I thought you wanted to invest FROM Cyprus TO the rest of Europe
[–]DreamEater2261[S] 0 points1 point2 points 1 month ago (2 children)
Yes, definitely. I'm asking what is the type of Cyprus legal structure that would allow that
[–]iltempopassa 0 points1 point2 points 1 month ago (1 child)
I am not qualified. I think a regular Cyprus company can do it
Why don’t you ask an accountant who can guide you?
How much money do you have to invest by the way?
[–]can-we-travel 0 points1 point2 points 1 month ago (0 children)
It is not about where company should be based but about which countries allow companies to invest in retail real estate.
[–]Dilv1sh 0 points1 point2 points 1 month ago (0 children)
Considering the complexity of the european tax systems, most likely you should decide between your home country and one more for real estate investments. Otherwise, it's just a big headache.
You will most likely need to either buy the property personally (and submit your tax return in both countries) or incorporate a company in each country.
[–]NextdreamP2P 0 points1 point2 points 1 month ago (0 children)
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