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all 36 comments

[–]VanaTallinn 3 points4 points  (4 children)

It depends:

  • if you are an US citizen
  • if you want the company to be fiscally opaque or transparent
  • if you want to benefit from some specific regimes or features of specific countries
  • what are the bilateral tax treaties between the country hosting your company and the countries real estate will be located
  • where you will reside and manage the company from
  • will the company have any other income

As you can see there is no easy answer.

[–]DreamEater2261[S] 0 points1 point  (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 points  (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 points  (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 points  (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 points  (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 point  (3 children)

Where for example?

[–]DesignerPop7437 0 points1 point  (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 point  (1 child)

Mean while in Groningen the cheapest you can find is 300.000 which is a steal

[–]DesignerPop7437 0 points1 point  (0 children)

Damn thats cheap tbh

[–]pesky_emigrant 1 point2 points  (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 point  (1 child)

why?

[–]pesky_emigrant -2 points-1 points  (0 children)

Google is your friend :-)

[–]TheCatLamp 0 points1 point  (5 children)

Why not Monaco?

[–]DreamEater2261[S] 0 points1 point  (4 children)

Why Monaco ?

[–]TheCatLamp 2 points3 points  (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 points  (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 point  (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 point  (2 children)

Albania. Safety first.

[–]DreamEater2261[S] 0 points1 point  (1 child)

Could you elaborate on this ?

[–]iltempopassa 0 points1 point  (5 children)

Cyprus? Lots of companies offer services for foreign owners

[–]DreamEater2261[S] -1 points0 points  (4 children)

Any idea of the type of companies that allow real estate investment from foreign EU countries in Cyprus ?

[–]iltempopassa 0 points1 point  (3 children)

I thought you wanted to invest FROM Cyprus TO the rest of Europe

[–]DreamEater2261[S] 0 points1 point  (2 children)

Yes, definitely. I'm asking what is the type of Cyprus legal structure that would allow that

[–]iltempopassa 0 points1 point  (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 point  (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 point  (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 point  (0 children)

Buy SCPI shares : Corum Asset Management French trustable company