Real Estate & Estate Planning

Being international is becoming more and more important for companies and for individuals for both business and private reasons and, consequently, owning foreign real property is becoming more popular. Increasing permeability of borders (e.g. in the EU) is fostering this trend.

There are several reasons to buy or build real estate in another country.

  • Owner occupation: People may want to have a holiday home abroad. Some others leave their country completely and are looking for a permanent residence.
  • Investment: Foreign real estate is an important and necessary asset in an internationally diversified portfolio.
  • Business use: A company sets up a subsidiary or a branch in another country. Instead of renting premises it buys them.

Nexia members have a well-founded knowledge of legal and tax issues that have to be considered. Tax issues, in particular, are getting more and more complex. Your Nexia tax advisor will guide you through all tax queries that arise at any stage of a property investment. The following questions give you an idea of the problems to be solved.

  • Acquisition of real estate : Are there any special taxes on the acquisition of land? What about VAT?
  • To possess real estate: Are there any local taxes on land? Is there a net wealth tax for foreigners and what is the tax burden? If the property is rented: What about the income tax consequences?
  • Sale of real estate: Does the foreign state levy any taxes on capital gains? Are there any withholding requirements for the buyer? What about VAT?
  • Gratis conveyances on real estate: What happens if the owner dies or if he wants to give the real estate as a gift to his relatives? Are there any inheritance or gift taxes? Does this trigger any capital gains taxes?

Nexia's approach reflects the various needs and ambitions of our clients. Whether advising on the legal or fiscal aspects of real estate, your local Nexia-Partner will offer you customized solutions. He will get in touch with your local tax advisor or with a Nexia colleague from your jurisdiction to develop comprehensive solutions.

Nexia International is a worldwide network of independent accounting and consulting firms. It does not accept any responsibility for the commission of any act, or omission to act by, or the liabilities of, any of its members.
Membership of Nexia International does not constitute any partnership between members, and members do not accept any responsibility for the commission of any act, or omission to act by, or the liabilities of, other members.