Am I buying a property as a company or as a private individual?
Where you carry out a business activity, you will be able to buy a property both as a company and as a private individual. But what are the advantages in both cases? Let’s find out together!
Real estate investment , like all investments, is subject to certain risks , but the investor could also risk losing his invested assets (perhaps in the event of insolvency in the presence of mortgage loans, personal creditors, etc.) real estate agents for investors.
Therefore, when you choose to buy a property you will have to take into account some elements. First, evaluate the convenience of investing as a company or as an individual. Depending on the activity to be performed, there may be benefits and tax relief. In fact, usually it is customary to distinguish purchase aimed at leasing the property or purchase aimed at using the asset.
Indeed, there are also corporate models that can be used to carry out this activity. In particular we are referring to real estate management companies or real estate holding companies. The former are companies whose main function is to manage real estate. The second performs the same function, but according to a more complex structure. A company that buys real estate is not necessarily a management company. This corporate form, in fact, is mainly used where it is intended not only to purchase, but also to protect real estate assets.
Purchase As A Private Individual Or As A Company: What Are The Differences?
Having made these brief premises, we can now analyze what are the elements to take into consideration if you want to buy a property. Indeed, as stated in the previous paragraphs, you will be able to evaluate whether to buy as a company or as a private individual. To proceed to make this decision, you will have to proceed with the analysis of 4 points to analyze:
the indirect taxation foreseen in the purchase phase , in order to calculate the incidence of VAT or registration tax and hypo-cadastal taxes;
the taxation of the income tractable from the real estate investment and the deductibility regime of the costs relating to the property , in order to evaluate the net profitability;
the possible presence of tax breaks on the purchase or renovation of the property .
Where you carry out a business activity, you will be able to buy a property both as a company and as a private individual. But what are the advantages in both cases? Let’s find out together! Real estate investment , like all investments, is subject to certain risks , but the investor could also risk…