REAL ESTATE HOLDING COMPANY

Luxembourg has always been a well-known judicition real estate holding companies.

Usually, real estate owners are looking for reduction of inheritance tax rate, tax free banking, advantages of double-tax treaty, capital gain tax law, etc.

It is important to keep in mind that generally speaking, real estate taxation applicable is the one of the real estate location. Luxelbourg is not a tax free country but some oppotunities of structuration remain.

SEVERAL SITUATIONS

Owning real estate outside Luxembourg through a Luxembourg company is interesting in several cases.

• Possibility of tax exemption on real estate capital gains (short term operation)

• Real estate held for a long term helps to optimize taxation on incomes and wealth taxation if applicable (long term operation)

SHORT TERM OWNING

An accurate description of you projetcs supported by figures will allow us to determine the best stategy to adopt. .

Our expertise should be required if a minimum 1 000 000 € capital gain are involved.

LONG TERM OWNING

Several tailor made solutions exist depending on your needs:

• Real estate owning with a mortgage loan to offset the income

• Holding the shares of a non-trading company which owns real estate through a Luxembourg company

• Real estate asset-stripping in order to free up cash. This solution is appreciated by company managers who can restructure their estate while facing better the crisis.

• Inheritance wealth planning,

• Etc….,

Other existing solutions are : mortgage loan, assets investment in Luxembourg management structure or insurance life, for example.

Il will be easier to structure real estate (residential or on return) valuated at minimum 1.000.000 € if it is liability free.