Having a car or property on the name of your offshore company in your local jurisdiction?

[Jessie]

I have a company in HK and would like to use it to put car and properties on it's name instead of my own as a individual.
I live in the EU.

Is that even possible and if it is, how?

 

[Internationaloff]

It depends on the country you live in, but it would be too suspicious⁠ in the eyes of the local tax authority. It's better to use a European company⁤ for this purpose (e.g. Bulgaria).

 

[Jessie]

Well quite a coincidence you suggest Bulgaria, since that's where I live.

So, would be‌ wise the HK company to own the bulgarian company or what would be the best‍ way to set that up?

 

[Jessie]

The bulgarian company that is owned by the HK one will be paying rent to‌ the HK one?

And what would be the reason of the bulgarian company of giving‍ the car to me to drive?

 

[negon]

Not sure if this⁠ will work at all! The reason to give you the car would be that you⁤ are an employee working as an sales agent for the company and you have to⁣ get around to visit customers.

 

[Jessie]

Why it wouldnt work at all?

 

[Jessie]

Can a HK company be a sole owner of the bulgarian company? And how big‌ of a problem is if the bulgarian comopany has no real activity?

 

[totlori9]

I'm starting to get confused on what you are trying to do.

Cars can have‌ a different owner and registered keeper. In all the EU countries I have seen cars‍ could have an owner without a local address, but couldn't have a registered keeper without⁠ a local address on regular license plates.

It is also possible for a foreign (offshore)⁤ company to have a local 'commercial presence' with a local address and even a bank⁣ account but still without it being deemed a 'permanent establishment' (which would make it locally⁢ taxable) but is a complicated topic and I don't think it's worth it for a︀ single car (unless something of massive value)...

 

[Jessie]

Well the goal is to have expensive car under my control that is not on‌ my name so I don't have to explain how I can afford it.

 

[totlori9]

What I meant is in the other two threads you wanted to⁠ cash out crypto in a way that the income goes fully to your name. In⁤ this you want to keep expensive things that you want to buy off your name...⁣

However both versions that I have said above work in the EU countries I know⁢ of.

 

[Jessie]

Yes I'm working on both things in parallel.
Increasing income, and decreasing spending. At least‌ on paper.

And protecting assets.

 

[blizz]

How would that work. No country or tax office will accept this at least not‌ in the 5 countries around me would this work.

 

[totlori9]

Hi, are you asking how the concept of the 'commercial presence' works?

 

[blizz]

I as wondering how the hell you can have a car registered in Bahamas and‌ drive it in Germany? Someone must be suspicious and the German police may think this‍ seems wrong on the Autobahn or not?

And would you get the registration plate send⁠ from Bahamas to put it on your car in DE ?

 

[Chopper94]

The easiest way would be to have the car owned by your company and registering‌ it to your name. It's the same as when you lease a car, it's also‍ owned by the leasing company which might even be in another country.

 

[totlori9]

I meant exactly that. The OWNER of the car is the offshore company,⁠ the REGISTERED KEEPER of the car is what has to be a local entity in⁤ order to be able to get local license plates. The local entity can be either⁣ you as an individual or the locally registered 'commercial presence' of the same offshore company⁢ with you as the authorised person. Many countries allow to register a 'commercial presence' for︀ a foreign company in the local business register for a fee, this is unlike a︁ 'branch' not a separate autonomuos locally taxable entity with an OECD 'permanent establishment' but an︂ authorized office/person that does activities that are deemed preparatory and auxiliary in nature by OECD︃ DTAs. 'Commercial presents' have a local address so are a good vehicle to open local︄ bank accounts, register cars, enter into an insurance contract, own a building, etc.

 

[Takeshi]

Don't bother to own the car, lease or rent it for long periods with⁠ a negotiated or unlimited mileage, you have a contract for its insurance, service and repairs⁤ because expensive cars = expensive repairs, they are badly built and most car manufacturers do⁣ regular recalls for failing parts etc., it will avoid you as well to be flagged⁢ with the same foreign plates and change regularly if you fancy a different model.

Try Germany or Switzerland, most of the rentals are proposed with unlimited mileage.

 

[jackfrost]

If it flies, floats, or fu***... rent it....

best advice ever and that is from‌ someone that was a Porsche fleet customer at 21... payed cash. It is not worth‍ it especially in the current printing climate and flat renting offers...

Plenty of 3rd party⁠ (non sixt, europcar etc) rentals specifically catering to corp customers with class based models as⁤ in you can switch cars within a class regularly and make it 100% tax deductible⁣ without writing it off over multiple years etc

I did sell corp GT3s +-0 after⁢ driving them for a couple years even with VAT differentials calculated in but not worth︀ it especially today.

 

[Jessie]

That's what I currently do I lease it, but still the contract for the monthly‌ payments is to my name and I would like to avoid that as well.

 

[marder]

expensive cars even rented are favorite target (with real estate) of the tax people to‌ find out who owns/drives it 😉