Maxim Lukyanov, Co-Founder and CEO of NEMAX, a business developer, expert in global sales and investment strategy.
Purchasing real estate has long been a reliable method for long-term investment abroad. For many, it is an opportunity not only to preserve and grow capital but also to obtain residency in a country with a high standard of living and attractive business conditions.
For example, the UAE’s real estate market attracts global buyers with its price-to-quality ratio and consistently strong economic performance. The year 2024 saw a record surge in real estate transactions—up 36.5%.
When investing in the real estate market, selecting the right property is just the first step. The key challenge is structuring the transaction to maximize returns while minimizing financial costs and legal risks.
One of the critical decisions to achieve this goal is choosing whether to register the purchase under an individual’s name or a company. Many investors prefer the latter, and here are seven reasons why.
1. Optimize Expenses
In some countries, various factors can incentivize purchasing through a company. For example, the UAE does not impose taxes on income from property sales or rentals. Moreover, UAE residents who own companies can often manage overseas assets more efficiently through their UAE-based entity.
When investing abroad, key costs usually depend on the host country’s tax regulations, transaction levies and property maintenance fees. High corporate taxes or limited deductions may make individual ownership more cost-effective. Investors should also weigh capital gains taxes, inheritance rules and cross-border reporting requirements. For single properties or personal use, owning privately often means fewer bureaucratic obligations and greater flexibility.
2. Enhance Confidentiality
If a property is registered under an individual’s name, this information is often publicly accessible. For example, in Dubai, ownership details can be verified via the official smart real estate platform Dubai REST or the Dubai Land Department (DLD) website by entering the property’s unique title deed number and other details.
Data on legal entities is often less accessible. Although UAE law requires ultimate beneficial owners to be disclosed upon request, doing so requires significantly more effort.
By purchasing through a company, buyers can employ complex ownership structures—such as trusts or special purpose vehicles (SPVs)—to strengthen confidentiality, though these structures may involve additional setup costs and compliance requirements that individual owners could avoid.
Jurisdictions approach ownership transparency differently: Some U.S. states like Florida mandate public records (unless using LLCs), while places like Switzerland are working to keep beneficial owners confidential despite transaction visibility. However, OECD’s Common Reporting Standards (CRS) now requires automatic data exchange, which could impact traditional privacy havens.
In short, structuring a purchase through a company in some locations can offer a higher level of discretion compared to many other jurisdictions.
3. Protect Assets
In certain locations, holding property through a legal entity separates personal and business assets, shielding private wealth from potential risks.
For instance, in legal disputes, only the individual’s direct assets—such as shares in the company—may be affected. The company itself retains full control over the property, enabling it to sell or otherwise safeguard the asset.
Meanwhile individual ownership could offer more direct control and simpler decision-making processes.
4. Consolidate Management
If there are several properties and all of them are registered to one legal entity, it is usually easier and cheaper for the owner to manage them, reducing operating costs. This structure also allows owners to leverage legal mechanisms for efficient property management.
5. Secure Financing Faster
Companies often have broader financing options than individuals. For example, shares in a real estate-holding company can be used as collateral for loans from many major banks. The higher the company’s asset value, the better the loan terms.
However, it is important to keep in mind that banks in places like the UAE can be conservative in issuing loans. Therefore, real estate buyers are often looking for safe alternatives to invest in properties.
One of the options could be hard money lending, which has become more popular in recent years as a tool for raising finance through a private company without strict requirements and in a short period of time. The deal is secured by real estate collateral, effectively significantly mitigating the risk for all parties involved.
6. Simplify Sales
In some locations, owners can sell company shares without transferring property ownership. In many jurisdictions, share transactions are taxed differently than real estate deals.
However, transferring corporate rights often involves complex bureaucratic procedures, requiring thorough tax and legal analysis. Regulatory approvals may further complicate the process.
Early collaboration with experts is crucial. Investors may want to work with local companies that can guide clients through such transactions, structuring sales to comply with applicable taxes.
These regulations vary significantly by country. For instance, in Germany, selling shares in a property-holding company may still trigger real estate transfer tax if certain thresholds are crossed. Investors should also consider capital gains treatment: In the U.K., corporate intra-group asset transfers may be eligible for tax deferral under certain group relief rules.
Given these differences, investors must assess not only tax rates but also transaction reporting obligations, anti-avoidance rules and compliance timelines, which can significantly impact deal structure and timing.
7. Streamline Inheritance
Inheriting foreign real estate can be a tedious bureaucratic procedure. Often the property has to be split between heirs, which delays and complicates the process.
However, if the object is owned by a company, it can simplify the matter. Often, shares transfer to heirs, avoiding complex property division and simplifying disposal. In addition, it is possible to appoint concrete heirs or managers who will control the asset until the heirs officially take over.
Corporate ownership isn’t limited to commercial assets—it includes all residential types (apartments, villas, turnkey properties), offering businesses diversification and risk mitigation.
It is a good idea to reach out to local professionals for help choosing the optimal ownership structure, ensuring legal purity and maximizing the benefits of investment.
To sum up, corporate property registration may serve as a strategic long-term investment tool, offering risk reduction, cost savings, asset protection, privacy, streamlined management and improved financing access.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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