From a tax perspective, it is more advantageous to own real estate as a company than as a private individual. This is especially true if you receive rental income.
To begin with, you can deduct maintenance costs, management fees, and loan interest without any statutory ceiling. In addition, you can also deduct other expenses related to the purchase of the property (notary fees, registration duties, non-recoverable VAT, etc.).
Moreover, corporate tax is often lower than personal income tax, which is calculated in progressive brackets, depending on the amount of your income.
That said, the status of a private individual also offers certain advantages:
If the owner rents out buildings privately to other individuals and they are not used for business purposes, the landlord is taxed based on the revalued cadastral income of the property. This is usually lower than the actual rental income received.
If the owner of the property realises a capital gain upon sale, a company is taxed on the amount of that capital gain. For a private individual, this is not the case, provided it is not a purely speculative transaction and the property has been held for several years before the sale.
Our experts will gladly assess whether a real estate company is the most advantageous solution for you.
