BVI company - taxed when buying/selling REITS, equities etc

[travelES]

Would a resident of a tax free/territorial tax country using a BVI company to invest in equities, ETFs REITs etc on the major exchanges pay tax upon disposal?

 

[Martin Everson]

For a resident of a tax free country no. For a territorial tax country depends on the CFC and DTA rules as a BVI may be tax resident in that country and hence subject to its corporate tax rules on capital gains.

 

[travelES]

For a resident of a tax free country no. For a territorial tax country depends on the CFC and DTA rules as a BVI may be tax resident in that country and hence subject to its corporate tax rules on capital gains.

Interesting. Thanks.

It seems if a resident of a tax free country buys a property in a country (e.g. USA) he will pay transfer tax/stamp duty + tax on rental income + tax upon disposal. Probably around 20-30% total. Conversely that same resident if investing in REITs would pay no tax to purchase or dispose, nor on earnings (dividends).

Am I missing something or is this as obvious as it sounds: if you reside in a tax free company you should typically favor REITs over direct reality.

 

[Martin Everson]

Am I missing something or is this as obvious as it sounds: if you reside in a tax free company you should typically favor REITs over direct reality.

REIT vs Direct investment is like cybersex vs real sex. Which one do you prefer more at end of day?

 

[travelES]

REIT vs Direct investment is like cybersex vs real sex. Which one do you prefer more at end of day?

Lol. The one with the biggest ROI with the lowest risk and energy/time expenditure.

 

[Martin Everson]

Lol. The one with the biggest ROI with the lowest risk and energy/time expenditure.

Then cybersex (REIT) it is for you.

 

[burden]

What tax free country do you live in ?

 

[troubled soul]

Lol. The one with the biggest ROI with the lowest risk and energy/time expenditure.

Dear , check some REITs price in 2008-09.
Make some chart or comparison table and check what your are missing.

If you really want less headache or less energy type, just buy property and Hire property management company.

In some big cities , big developer provide this service type of services, just buy property and they rent the property themself and handle all headache, and give your monthly rental income after cutting thier fee and property charges.

When you buy reits, you do not have any control, but when you buy property. You can control every aspect. If property management company do some funny business , you can change them.

It is media propegenda, that brainwash people that reita are better than real property investment. It is myth. People buying this myth. Reits are good concept but there is no comparison with real property investment. Real investment wins always and provide you high return .



Thanks

 

[Golden Fleece]

Lol. The one with the biggest ROI with the lowest risk and energy/time expenditure.

You believe that a REIT (a financial instrument) is less risky and more profitable than a real asset that you can research, fully own, and choose yourself (producing far-above average returns) from amongst millions of properties in dozens of countries?

You must have a pretty low opinion of yourself. Well, I suppose that, in itself, is its own form of wisdom.

 

[JimBeam]

Of course, REITs have good and bad sides...

What I like about that (except the dividends) is the fact that you can sell it with a click of a button and have your cash back in no time for a very small commission.
While to do that with the real property it can take months to find a buyer, negotiate the price and it can cost a fortune to do that.

Also you can start investing with a smaller amount of money.

 

[travelES]

Of course, REITs have good and bad sides...

What I like about that (except the dividends) is the fact that you can sell it with a click of a button and have your cash back in no time for a very small commission.
While to do that with the real property it can take months to find a buyer, negotiate the price and it can cost a fortune to do that.

Also you can start investing with a smaller amount of money.

And I assume no transfer/stamp duty tax to purchase or tax upon disposal (if you are offshore and structured correctly). That's right isn't it? My original question pertained to taxation.