// Real Estate & Assets

Buying Property Abroad?
Who Owns It Matters More
Than Where It Is.

Foreign real estate purchased in your personal name exposes you to local inheritance tax, forced heirship rules, and public property registers. An offshore company owning the property eliminates these issues — plus simplifies future sales (sell shares, not property), provides privacy, and can optimize rental income tax.

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// The Problem

Personal Ownership of Foreign Property Is a Trap

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Local Inheritance Tax

Buy a villa in France: 45% inheritance tax. Spain: up to 34%. Portugal: stamp duty on inheritance. Each country has its own succession rules — often forcing distribution to heirs you didn't intend. An offshore company avoids local succession rules entirely.

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Public Registers

Your name on a property register is public information. In Spain, France, Greece — anyone can look up who owns what. Privacy-conscious buyers use companies for legitimate reasons: security, discretion, and separation of personal identity from asset ownership.

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Complex Sales

Selling foreign property in your name involves local notaries, capital gains tax calculations, tax certificates, and months of bureaucracy. Selling shares in a company that owns property is faster, simpler, and often more tax-efficient.

// The Solution

Property Holding Structures

The right holding company depends on where the property is, your nationality, and your goals.

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BVI

0% tax. Clean share transfers. Classic property holding jurisdiction. Sell shares instead of property. No public beneficial ownership register. Best for: maximum privacy and simplicity.

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Cyprus

0% on securities gains. EU treaties. Sell company shares = 0% capital gains. EU member with extensive treaty network. Best for: EU property held through optimized structure.

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Malta

Participation exemption. 0% tax on qualifying subsidiary disposals. EU member. Best for: portfolio investors with multiple European properties.

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Panama

Territorial tax + strong privacy. Foreign property income untaxed. Strong privacy laws. No public register. Best for: Americas-based property investments.

Who Owns Your Foreign Property Determines How It's Taxed — Forever

Local inheritance tax, capital gains treatment, and succession rules are all determined by ownership structure. Get this right from the start. 30-minute consultation — no obligation.

30-minute assessment
No obligation
Honest recommendation
100% confidential

// Case Study

Share Sale vs. Property Sale: The Tax Difference

A €2M villa in Spain. Personal ownership: selling triggers 19-26% Spanish capital gains tax + notary and transfer costs. BVI company ownership: sell the BVI company shares instead. No Spanish property transfer. No local capital gains (shares sold offshore). Buyer gets the property, you get clean proceeds.

Avoid local inheritance tax — company never "dies," so no local succession event.
Share transfer simplifies sale — no notaries, no local tax certificates, no 6-month property transfer process.
Privacy — your name doesn't appear on public property registers.
Multi-property portfolio — one holding company can own properties in multiple countries.

"Bought a €1.5M apartment in Lisbon through a BVI company. When I sold it 4 years later, I sold the BVI shares — no Portuguese property transfer tax, no local capital gains. My neighbor sold her identical apartment personally and paid €87,000 in Portuguese taxes. Same building. Same floor."

CR
Catherine R.Property Investor, London

// Important

Key Considerations

ATED (UK)

UK property owned through companies is subject to Annual Tax on Enveloped Dwellings (ATED) — £3,800-£269,450/year depending on value. This makes company ownership less attractive for UK property specifically. We advise on whether company ownership makes sense for each jurisdiction.

Local Anti-Avoidance Rules

Some countries (France, Spain) have introduced rules to "look through" company ownership for tax purposes. The effectiveness of company holding depends on the specific country. We analyze each jurisdiction before recommending a structure.

Mortgage Complications

Some banks are reluctant to lend to offshore-owned properties. Others specialize in it. We connect you with banks that understand corporate property ownership in your target country.

// FAQ

Foreign Property Questions

It depends on the country. For most Southern European properties (Spain, Portugal, Greece, Italy), company ownership avoids local inheritance tax and simplifies future sales. For UK property, ATED makes it less attractive. We analyze the specific jurisdiction before recommending. Book a consultation for your property.

Yes, though the bank selection is more limited. Banks in Spain, Portugal, and France do lend to offshore-owned properties. Terms may differ from personal mortgages. We connect you with banks experienced in corporate property lending. Book a consultation to discuss financing.

Rental income is typically taxed in the country where the property is located, regardless of ownership structure. However, the company structure can provide deductions, cost allocation, and optimize the flow of after-tax rental income. Book a consultation to optimize rental tax treatment.

This is the primary benefit. Company shares pass under the laws of the company's jurisdiction — not the property's country. You avoid local inheritance tax and forced heirship rules. Your estate plan controls distribution. Book a consultation to understand the inheritance benefits.

Yes, but it may create a benefit-in-kind tax obligation. The company would charge you rent (or a deemed rent applies). This needs to be structured properly to avoid tax issues. Book a consultation to understand the implications.

// Related Solutions

Also Relevant

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Real Estate Portfolio

Multi-property offshore structures.

Portfolio Solutions →
🛥️

Yacht & Aircraft

High-value asset registration and ownership.

Yacht & Aircraft →
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Tax Residency Change

Move to where your property is.

Residency Solutions →

You've Read This Far Because You're Buying Smart

The ownership structure you choose today affects every future transaction — sales, inheritance, taxes. Get it right from the start. Book a consultation — 30 minutes, no obligation.