Real Estate

Ownership of real estate by individuals may result in liability to death duties and similar taxes in the country in which the real estate is situated, irrespective of the domicile or residence of the individual owner.

Withholding and other taxes are also frequently imposed on rental income deriving from the holding of real estate in a foreign country; similarly, capital gains taxes may be imposed on the profits flowing from the sale of property.

For these reasons, it is common to hold foreign real estate through a tax haven or other company.

However, in a few cases, the provisions of a tax treaty may be of considerable value in minimising the total tax burden; for example, the treaty between the Netherlands Antilles and the United States.