How to invest in EU with a UAE company

[no1d]

Hey everyone,

I have some questions about real estate investments in EU.

My personal situation is as following:
I am Romanian citizen and I only have visa in UAE, not the tax residency certificate.

I would like to use the profits from my RAK company to invest in real estate developments in Romania.
Money are held in a Lithuanian EMI and I'm not comfortable holding high amounts there anymore, too many questions.

Currently in touch with an accountant who said he could arrange a loan agreement between my new local SRL company and my company in UAE. Knows how to do it 'right', he say.

Personally I think this is a bit risky because I might get questioned by the local tax authorities and end up into a mess.

Is there anybody here who know how to do this thing right?

Thank you in advance!

 

[all in]

You can set up the Romanian SRL with you + Uae company as shareholders. And the SRL will be funded by the UAE company without any issues.

 

[no1d]

They will see my name on the loan agreement anyway and I'll be the sole owner of the local company.

Question is if that will trigger all sorts of checks by tax authorities and what they can do about it.

I did filled the form for leaving the country 4 years ago but I have not managed to get the tax certificate from UAE. I tried living in Dubai but after 2-3 months I was getting bored and unproductive so had to go back to Europe.

My friend is a real estate developer and he has some good investing opportunities that can bring me a return of 30%, that's why I want to make this investment.

 

[CaptK]

Loan agreement will work and also the fact you informed them you are not tax liabile in RM any more is enough.

If you have been in the UAE as your main residency for the 4 years then you will be fine.
Apply for the tax certificate and see what they say.

 

[no1d]

Thing is I haven't lived permanently in Dubai, just tried once for 3-4 months and then other times I went there for shorter periods to keep my visa valid.
So I've stayed more in EU countries, in Germany around 2 months per year, plus vacations, effectively I didn't stayed over 183 days in Romania.

Last year I've started a real estate business in RO, own a car, personal bank account and tax authorities might claim my center of life is here and I don't want that.

Accountants say they can do the loan agreement without issues, but still I need to be able to prove my tax residency status in UAE just in case.

I guess I should look for a lawyer with financial expertise.

Dividend tax in Romania is pretty low at 5%, I would rather cash-out all profits as dividends, pay 5% and both side will be happy.

 

[CaptK]

Thing is I haven't lived permanently in Dubai, just tried once for 3-4 months and then other times I went there for shorter periods to keep my visa valid.
So I've stayed more in EU countries, in Germany around 2 months per year, plus vacations, effectively I didn't stayed over 183 days in Romania.

Last year I've started a real estate business in RO, own a car, personal bank account and tax authorities might claim my center of life is here and I don't want that.

Accountants say they can do the loan agreement without issues, but still I need to be able to prove my tax residency status in UAE just in case.

I guess I should look for a lawyer with financial expertise.

Dividend tax in Romania is pretty low at 5%, I would rather cash-out all profits as dividends, pay 5% and both side will be happy.

I was just thinking that as you said Romania, take the 5% hit and live in peace.

 

[NicolasMaduro]

Why dont you just by real estate in UAE? Seems a bit risky since you have already committed a crime

 

[no1d]

I think real estate investments in UAE are risky, prices might go down and rental returns are not great.

Investing in local developments is way more profitable, yield is 30% annually. Even through crowdestate.eu you can get 15% annually.

I want to understand the risks of the loan scheme or cashing out dividends and what is better.
What could get me in trouble?

 

[kkein]

I think real estate investments in UAE are risky, prices might go down and rental returns are not great.

Investing in local developments is way more profitable, yield is 30% annually. Even through crowdestate.eu you can get 15% annually.

I want to understand the risks of the loan scheme or cashing out dividends and what is better.
What could get me in trouble?

Find 3 other biz partner, get the company in romania owning <25%, don't show up as UBO

 

[no1d]

@kkein if I'm shareholder in a RO company I guess I'm UBO by default. I'm not sure I understand you suggestion, maybe you can elaborate, thanks.

 

[kkein]

@kkein if I'm shareholder in a RO company I guess I'm UBO by default. I'm not sure I understand you suggestion, maybe you can elaborate, thanks.

Hm yea sorry, i'm not sure if in romania it's possible to have a nominee structure. With latest EU regulations, even with nominee structures, UBOs owning > 25% need to show in UBO registry.