Investing in property in company

[gridline]

Hi,

I am the owner of a Cyprus company, with nominees, which is generating a decent revenue, and I've been thinking that the company could do some investing in some property in Sweden, Romania or Portugal.
Is it possible to do that in the Cyprus company, or is it necessary to have a company in the country where the property is being bought? If so, how can money be transferred from the Cyprus company to the company which will buy the property? Can the money be transferred freely if its the Cyprus company owning the other companies?

Another thing:
I have never paid out dividends to myself, mostly because I don't know how to report it to my local tax authority, if I for example pay out dividends, and my tax authority wants documentation on the source of the income, what do i show them?

I hope someone can help.

 

[world50]

Hello,

I not speak very well english, sorry for that.

I think is better for you to create a children company who hold property, in each country of you want property, like named "SCI" in France or Belgium or Luxembourg. If it's children of your Cyprus, you have the rigth to make like a mortgage (and never refund the Cyprus?) to the children to buy property. If you want to protect you better again, see to create an holding company who take the cyprius for transfer found from Cyprus to holding and after to children company. Like that if someone (creditor) want to take your money to your cyprius business normaly he can't, but if you buy property directly with your cyprius company creditor can take property also! Better to not take dividends to buy property, you will pay tax in your income... no need.

See also for short term rent (like airbnb) in Prague, Budapest, there place offer a big roi... also for "collocation" of students...

 

[James Turner]

Hi,

I am the owner of a Cyprus company, with nominees, which is generating a decent revenue, and I've been thinking that the company could do some investing in some property in Sweden, Romania or Portugal.
Is it possible to do that in the Cyprus company, or is it necessary to have a company in the country where the property is being bought? If so, how can money be transferred from the Cyprus company to the company which will buy the property? Can the money be transferred freely if its the Cyprus company owning the other companies?

Another thing:
I have never paid out dividends to myself, mostly because I don't know how to report it to my local tax authority, if I for example pay out dividends, and my tax authority wants documentation on the source of the income, what do i show them?

I hope someone can help.

It depends on the specific countries that you intend to own property, your personal residential location, tax implications etc. It is sadly not as simple as just creating a local company to own property or having it owned by an offshore entity. We would need to investigate the local laws on property ownership using none resident companies in those countries mentioned, but in most cases it is possible for an offshore company to own and creating a separate company in each location is often not necessary and a costly and complicated way to do it as this involves you in local accounting, filing of returns and local taxes as the companies will then be trading locally.

Transferring funds between companies that you own is generally very simple and can be done by either using the loaning company as a holding company or by creating loans between separate companies which must be done legitimately with appropriate interest rates in place and agreements to support them.

 

[Deepbarrels]

I have the same kind of question, but more local in the US. I am considering opening a US LLC as a non-Us Resident (either sole proprietor or as a partnership). Wyoming seems cheaper, but what if we are planning to eventually invest in real estate in Florida with some profits from the LLC? Would it then be better to open the LLC in Florida instead?