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Property Ownership Structures

If you wish to purchase real estate elsewhere for investment purposes or for leisure or retirement purposes, there are substantial benefits to be derived through the establishment of a corporate, trust or foundation structure to address capital gains tax issues, inheritance tax and forced heirship rules.

Capital Gains Tax
Capital Gains Tax, which is essentially a profits tax, varies greatly between countries . Countries which impose Capital Gains Tax also have different rules relating to relief so careful consideration has to be given to the nature of the investment, the term of the investment and the specific rules that apply for each country. It should also be noted that certain countries may apply a withholding tax on the disposal of property unless a tax agent satisfies the authorities that the Capital Gains taxes if any have been accounted for.

Inheritance Tax

Inheritance Tax and Succession Taxes are taxes that relate to the transfer, upon death, of assets from spouse to spouse and to children. These taxes are often complicated, onerous and particularly high in some countries. In addition, most  countries have Forced Heirship rules where the laws prescribe that children cannot be disinherited from parent’s estates and therefore are entitled by law to a share of the estate.

Wealth Taxes

Some countries impose an annual wealth tax based on the Market value of the property.  There are certain structures available to mitigate this so therefore serious consideration has to be given to the method of ownership.