VAT refund for non-EU business in real estate purchase

[Outlander]

Our (non-EU) company wants to invest in real estate in the EU. The sales price includes a ~20% VAT. We're looking for the best strategy to claim a VAT refund after the purchase, which (as I understand it) requires a EU company, with a few exceptions. Any service providers or ideas regarding this?

 

[avalanche]

Im not⁤ an expert but from my first impression it may be required to prove that your⁣ purchase is related to the business transaction. For example your company should be flipping houses⁢ and you can't live in such house of course.

 

[Outlander]

It's for investment and short term rental. We wouldn't be living there. Our company⁤ is a real estate company, but from a country outside the list which is acceptable⁣ for a VAT refund claim.

 

[CyprusLaw]

You will need to set up⁠ a local company which will be registered for VAT, and purchase the property through that⁤ company

 

[Outlander]

I understand that‍ this is the general approach, but in this case, where to setup such a company⁠ in order to minimize tax overall? For the VAT refund itself, I believe it cannot⁤ be in the same country as the property is purchased. Could it be a LLC⁣ in the US?

 

[Jerry1911]

It can.

 

[avalanche]

It can if your⁤ purchase is a business related expense