Corporate and Offshore Ownership
You will get to discover that of the most of the highly priced properties in Portugal (Most of which are valued over €1million), are owned within corporate structures.
Corporate Ownership of Portugal Property
The house and property is an asset of the particular company and the buyer obtains and purchases the shares of that said company.
The moment that the property is sold the shares are sold by means of a shared purchase agreement, and so the company remains to be the owner of the home and property and the new buyer then becomes the owner of the company’s shares.
This purchase of the company takes place in the jurisdiction of the company’s domicile.
As with private ownership property purchases, both buyer and vendor will be required to have a Portuguese lawyer.
As usual, the buyers Lawyers will need to carry out all the usual searches on the property in Portugal, and most reputable lawyers will be familiar with this type of corporate property/company transaction.
Benefits of Corporate ownership for property valued at over €1million
Due to the various costs involved in a Corporation owning a property and the cost of running of a company, properties valued under€1million are always advised to be kept under private ownership as it may not be financially feasible for property valued below €1million to be owned through a Corporation.
However, there are great benefits of corporate ownership when purchasing property valued over 1 million in Portugal.
Corporate Ownership Benefits
There is no IMT to be paid when the purchased property is owned by a White listed corporation. Rather, in case of private property purchases, the investor gets to save %6.
- All capital gains from the profit of a sold property are subject to to where the corporation is domiciled as capital gains tax is not paid in Portugal on the profit of a sold property through corporate ownership.
- Investors who purchase through a corporation enjoy privacy/anonymity.
- The transfer of shares in property sales though corporate structures can be conducted in English a share purchase agreement. Also, Property sales conducted through corporate structures are very simple and tax efficient.
- Through corporate structures in Portugal, inheritance laws are applicable where the corporation is domiciled applying forced Heirship of one’s property to his/her spouse and children upon death; thus individuals can’t decide who gets hold of their property upon their death.