BVI vs Seychelles for property acquisition

[johnny811]

If someone wants to create an offshore company to avoid corporate tax, and acquire property in the UK, which is the best country to form an Ltd (or LLP?) into?
The point is that this company will receive capital, either from another Ltd or from personal accounts, and then purchase property in the UK.
Longer term, the profits will be used for 2 reasons:

1. To acquire more property in the UK
2. To draw some income and spend in the UK

To me it sounds that Seychelles offer more secrecy and diversity, whereas BVI is more costly.
Also, the potential of a holding company should come into play, in case of many Ltd owning one property each.

 

[Martin Everson]

Not sure what corporate tax you are talking about avoiding but forget this idea its 2018 not 1998. Owning UK property via an offshore company is for starters inefficient and expensive when you consider ATED alone. Several UK budgets ago they made sure of that. Secondly BVI is a British Overseas Territory (BOT). All BOT's will soon have to open their registries and books fully to UK government by law. Lastly owning UK property without a controlling person being known is becoming a thing of the past just like having a UK company without controlling persons being known. Don't take my word speak to a UK solicitor or tax planner.

Seychelles secrecy is going also. I would reassess your plans and bring them up to speed with the 2018 reality.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[johnny811]

Thanks for this. I'm also a noob here, so try to find some info.
Offshore companies such as BVI have 0% Corp tax, no?
Where so I start to 2018fy myself ?

 

[Martin Everson]

Welcome to the forum 🙂

Yes they have zero corporate tax but the subject is much more involved than that. In order to get the benefits you need to examine your local tax laws and structure yourself properly.

Post a new thread in the Mentor Group and I will respond there.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[johnny811]

Thread already started in the Mentor Group: Help on how to structure this