Establishing a Business Abroad
This article provides essential tips for entrepreneurs considering purchasing real estate through a locally established company in countries like Spain, Portugal, Italy, or Curaçao.
Establishing a Business Abroad
Interested in buying a villa or holiday home in countries like Spain, Portugal, Italy, or Curaçao as an entrepreneur?
It is advisable to start a local company in the country of purchase. Consider entities such as a Spanish SL, Portuguese Lda, Italian S.r.l., or an Antillean BV or SPF.
With this local entity, you can undertake business activities, possibly related to what you already do in the Netherlands, such as real estate management, a brokerage office, or other business initiatives you wish to explore.
A benefit of managing a property through a company is that all expenses, including mortgage costs, can be handled as business expenses, as well as travel and accommodation costs.
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Acquisition of Real Estate
After setting up your company, there are several ways to acquire property:
- Buying privately and then leasing it to your foreign company.
- Direct purchase through your newly established company.
- Purchase through another BV, where the shares are held by, for example, your children, with your new company renting the property and using the rental income to pay off the mortgage.
Founder of the Foreign Entity
A well-thought-out strategy is crucial. Is your Dutch (holding) BV the founder of the foreign company? In this case, we talk about a subsidiary. A major advantage is that you can use the bank balance of the Dutch company tax-free as share capital for the foreign subsidiary. This allows you to, for example, establish a Spanish SL under the Dutch BV with substantial capital, which can then be used to purchase property or to take out a private loan to buy a house.
The possibilities are limitless and without borders.
Amsterdam Legal Experts
Take advantage of the expertise of the lawyers at Amsterdam Lawyers to set up a solid plan for your foreign endeavors. Your Plan B for investments across the border.
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