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TAX CONSIDERATIONS FOR ACQUIRING FIXED PROPERTY

07 Feb 2020

The question is often asked whether, when acquiring fixed property, it would be more tax efficient to acquire such property in one’s individual name or to rather set up a corporate and/or trust structure to hold such property.

The following table sets out various available options and summarises some of the relevant tax considerations in this regard (with reference to tax rates for the 2020 year of assessment):

tax considerations

 In addition to the above, the following general principles may apply to all the above options:

  • Costs incurred in the production of rental income may be deductible.
  • If the person holding the property is registered for VAT in certain instances input credits may be claimed in respect of the property.

 

Disclaimer:

No information provided herein may in any way be construed as legal and/or tax advice. Professional advice should be sought with reference to specific background facts before any action is taken based on the information contained herein. We hereby disclaim any responsibility should any person act upon the contents of this publication without due consultation with reference to specific background facts. Accordingly, no person shall have any claim of any nature whatsoever arising out of, or in connection with the information provided herein.


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