A Property Holding company located in a 'Tax Neutral' Jurisdiction such as Gibraltar can provide fiscal benefits to its beneficial owners. An Offshore Property Holding Company often receives rental income where profits can accumulate in the Company's offshore bank account. Depending on the location of the property, rental income may be subject to local taxation. In the UK for example Non Resident Companies are required to withhold 20% tax under the Non resident landlord Scheme.
A Property Holding Company located in Gibraltar is not liable to pay any Capital Gains taxes or Inheritance taxes. The assets of a Gibraltar property Company can be transferred tax free to its new owners.
Fiscal advantages offered by tax neutral jurisdictions allow retained profits generated by an Offshore Property Company to be reinvested to purchase additional properties. Many well-known Banks have Offshore branches where buy to let mortgages are available at favourable rates. Keylink Consultancy LLC have experience in arranging property purchases by overseas companies, especially in the UK.
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