Areas of Expertise
Real Estate Structuring
Having real estate as an asset class is an important consideration when developing any wealth management or tax planning strategy. Whether real estate is held or purchased for residential, commercial or investment purposes, it can impact current and future tax liabilities of individuals and their families and eventually their estates. The jurisdiction in which real estate is held can also have a large impact, given that different countries often have significantly different wealth, inheritance, and estate tax regimes. The volatility of a country’s real estate prices can also positively or negatively affect an individual’s or company’s overall tax liability.
Our real estate structuring advice covers the whole life cycle of any real estate investment, from the initial purchase to holding periods, subsequent sales and succession considerations. We also address all real estate considerations carefully with our clients, to ensure that their real estate portfolio is managed efficiently to fit with their overall immediate and long-term intentions, whether this is asset building, investment diversification, or simply for residency purposes.
Examples of our work include:
Advising a group of Middle Eastern investors who wished to purchase real estate property in New York for investment purposes. This included assisting the investors to ensure that the purchase would not trigger U.S. estate tax liabilities, but still be eligible for the lower capital gains rate.
Restructuring a family’s U.S. real estate holdings to lower its capital gains tax exposure. The holdings were restructured to be held in simple offshore companies, resulting in the applicable capital gains tax rate being reduced from over 50% to 20%.
Advising a Swiss family in connection with the purchase of residential real estate in the U.S., in order to protect the family from the U.S. estate tax, while ensuring that the capital gains tax rate of 20% would apply, and providing the family with a superior succession planning solution as a result.
Advising a Swiss family on a real estate investment in Spain to help them achieve a tax efficient structure that mitigated the Wealth Tax, Inheritance and Gift Tax liability and minimized the income tax exposure.