Investors may choose to buy property assets in their own name or through a special-purpose vehicle, for example a company, where the investor would normally be the director and the property is officially owned by the company. This may be a mandatory method for investors in certain countries where foreign investors cannot directly own property assets.

However, where the choice exists, investors may still choose to invest through a special-purpose vehicle for tax or other business reasons. The decision is dependent on the country choice for investment.

Regulation, especially in Europe, is undergoing significant changes. Even where foreigners are not normally allowed to purchase property assets directly, there are cases where the investor can obtain a residents permit in order to invest without a special-purpose vehicle. This may have the benefit of saving, for example, company set-up costs and administration, but may be take longer than incorporating a company in the choice country. Thus if timing is a decisive factor in the investment, special-purpose vehicles may prove preferable. What is most important is that these technicalities are understood by investors and factored into the investment analyses.

Validus are happy to discuss these and other matters on the telephone or in person at our offices in Canary Wharf and Dublin, and to put you in touch with our partner tax, legal and currency specialists.

For further information about investing with Validus, call us on
020 7517 0580, email ask@validus-invest.com or register here.

view disclaimerPlease note: As with all investment property purchases, you are advised to take proper financial and legal advice at all stages. Investment values can decrease as well as increase. The content of this website is for informational purposes only, and readers are advised to speak to qualified legal experts and financial planners before taking any action. The information, tables, projections, and estimations provided by Validus are for indication only and do not represent factual information unless otherwise stated. The information is supplied without any guarantees whatsoever.