What are the costs when running a corporate structure to own a property?
Written by Offshore Property on 2009/01/04 – 10:08 PM
When investing in a property in an offshore corporate structure there are two additional costs compared to a privately owned one:
- Cost to maintain the corporate structure in the offshore country (usually represented by an administration company like Abacus Offshore). This depends mostly on the country you choose for your offshore company. Delaware, for example is more inexpensive as Malta at the moment due to its different tax situation.
- higher fiscal representation fee for a company in the country where you buy the property
The following table compares the costs of a privately owned property to a white listed corporate owned one:
| Privately Owned Property |
White Listed Corporate Ownership of Property |
|
| Property purchase costs, IMT and other taxes | 6% Purchase tax IMT 0.8% Stamp Duty | No IMT, No Stamp Duty |
| Legal fees at purchase and sale | 1 to 2% | 1 to 2% |
| Property selling costs CGT | 0,25 | None in Portugal |
| Annual running costs of company | None | Between Euros 1500 to 3500 |
| Annual poperty tax – IMI This calculation is based on the property rateable value |
0.2 to 0.4% | 0.2 to 0.4% |
| Annual Fiscal representation | Euro 240 | Euro 425 |
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