5 benefits of a corporate owned "offshore" property

Benefits of a corporate owned “offshore” property

Written by Offshore Property on 2009/01/04 – 10:11 PM

1. Easier handling

Transfer of property is a very simple and tax efficient procedure; a transfer of shares conducted in English via a Share Purchase Agreement. ie facilitates asset management. The property does not even have to meet all legal requirements like a having a habitation license or an energy certificate. Nevertheless you should definitely take care that these documents are available in case you or the future buyer wants to take the property back “onshore”.

2. Property Purchase Tax

Both IMT – Property Purchase Tax which can be up to 8% of the purchase price, as well as notary and land registry fees are avoided.

3. Mortgage in english speaking jurisdictions

Company owned properties can be mortgaged quite simply in english speaking jurisdictions.

4. No forced heirship

Transfer on death ensures that heirs can deal with their inheritance in English, and according to British/Irish law. They do not have to deal with the Portuguese legal system where there is forced heirship – spouse and children inherit automatically and individuals cannot choose to whom they wish to leave their estate.

5. No Capital Gains Tax payable in Portugal

Capital Gains Tax is not payable in Portugal on the profit when the property is sold via a corporate structure. The capital gain on the sale of the shares is subject to the jurisdiction of the seller. Please also read the article about the Locked in Capital Gains Tax.