Real estate investing via a company?

Today, real estate remains the pre-eminent investment instrument. A decision is often taken to have a (newly established) company (co-)invest in real estate, but is this always advisable? 

In order to determine whether it is best to invest in real estate personally or via your company, we must check your intentions against a number of criteria: the residential or commercial character of the real estate, the age of the real estate, the time you intend to keep the real estate, whether you intend to live there yourself and your intentions to engage in succession planning.

Based on this business analysis, a choice can be made between investing personally or through a company, with each of these elements having a different impact on personal or corporate income tax.

These criteria can also help determine the extent to which the company will own the property: full ownership, joint ownership or via a right in rem. This choice will have important consequences in terms of indirect taxes (VAT and registration fees).

 

Office Sint-Pieters-Leeuw

Office Kortrijk

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