Tax

There are generally two categories of taxes to consider when owning and eventually selling real estate: (i) annual recurring taxes and (ii) taxes associated with a sale.

Annual recurring taxes

Taxes in the countries where the properties are located

Local property taxes in the countries where the properties are located are included in the common expenses of the owners’ association. We ensure that the owners’ association pays these taxes.

Taxes in the owner’s country of residence

Certain countries impose tax on the ownership and/or use of holiday homes located abroad, while others do not. Many countries also tax the use of holiday homes owned through a company or holding structure.

In many cases, an owner may be entitled to a reduction in taxes in the country of residence under domestic tax law or under a double taxation treaty between the country of residence and the country in which the property is located.

21-5 does not provide tax advice regarding an owner’s tax position in his or her country of residence and assumes no liability in this respect. 21-5 strongly recommends that owners seek independent professional tax advice in connection with the ownership of their 21-5 share.

Taxes associated with a sale

Capital gains tax in the countries where the properties are located

Upon sale, capital gains tax may be payable in the country where the property is located. We assist with the calculation and payment of such taxes where applicable.

Capital gains tax in the owner’s country of residence

Capital gains realized on the sale of property may also be taxable in the owner’s country of residence.

In many cases, a reduction in taxes may be available under domestic tax rules or under a double taxation treaty between the country of residence and the country in which the property is located.

21-5 does not provide tax advice regarding an owner’s tax position in his or her country of residence and assumes no liability in this respect. 21-5 strongly recommends that owners seek independent professional tax advice in connection with the sale of their 21-5 share.