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]

Outlander said:
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?
Click to expand...

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]

avalanche said:
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.
Click to expand...

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]

Outlander said:
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.
Click to expand...

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

 

[Outlander]

CyprusLaw said:
You will need to set up a local company which will be registered for VAT, and purchase the property through that company
Click to expand...

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]

Outlander said:
For the VAT refund itself, I believe it cannot be in the same country as the property is purchased.
Click to expand...

It can.

 

[avalanche]

Outlander said:
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?
Click to expand...

It can if your purchase is a business related expense