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Susan Raaijmakers
Susan Raaijmakers

Partner

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+31 6 15 88 64 25

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Real Estate: Optimal tax structuring in real estate

We help local and international real estate investors, builders, contractors and developers to structure tax optimally, manage risks and optimize returns. Our role begins as soon as an idea for a project or investment is on the table. We assess the tax implications of each step, from acquisition, financing and operation to sale or redevelopment for tax opportunities and risks. In short: we translate fiscal rules into concrete, measurable value for the entrepreneur.

Discover our services

Optimize returns, minimize risks

What are Real Estate tax services and why are they essential?

Real Estate Taxation focuses on tax advice to parties active in the real estate sector. It involves optimizing tax structures for real estate transactions, property development and real estate investments. For professional real estate parties, strategic tax planning is crucial to:

  • Minimize transfer tax - Minimizing transfer tax is crucial, each percentage point saved can result in significant financial benefits.
  • Optimize VAT in real estate - The distinction between VAT taxed and VAT exempt transactions and the revision period are key factors to consider in real estate tax planning.
  • Navigate interest deduction limitations - Navigate interest deduction limitations, including earnings-stripping rules and the real estate exception, and evaluate the tax impact on financing.
  • Optimal tax structure - Set up an optimal tax structure for international real estate investments
  • Ensure compliance - Stay compliant with new rules such as the rules governing the transparency of real estate funds

 We work with diverse clients: project developers aiming for quick results without tax pitfalls, global investors needing to stay compliant, and family funds or startups buying their first property. What they share: time is money, and suboptimal tax structures cost more than you think. Reducing tax friction is non-negotiable.

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Partner mindset

We sit on the same side of the table as dealmakers with hands-on entrepreneurial mentality for fast deal realization.

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Network and deep technical tax knowledge

Bringing together all tax expertise in one place, streamlining processes, reducing complexity, and delivering results.

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International network

Through Taxand direct access to specialists in 50+ countries, on top of latest developments for international deals and knowledge sharing.

Our Real Estate Taxation services in detail

Strategic structuring for exemptions

Advising on the use restructuring exemptions (e.g. internal reorganization, mergers and demergers). We analyze your property portfolio and advise on the optimal timing and structure for internal transactions to avoid transfer tax.

New construction and renovation optimization

Strategic advice on project development to avoid extra cost due to incorrect VAT status. We perform a VAT scan in advance and advise on the most suitable transaction or group structure.

Review period management

Professional guidance on VAT review rules for real estate. 

Real estate interest deduction limitation

Strategic structuring to preserve optimal interest deductions. We analyze your financing structure and advise on adjustments for maximum tax efficiency.

International financing structures

Optimization of cross-border real estate financing (ATAD1, ATAD2) using treaty network and substance requirements.

Transaction structure optimization

Comprehensive analysis of advantages and disadvantages of asset deals versus share deals in real estate transactions. We assess the impact on transfer tax, VAT, and group structure.

Participation exemption

Advising on the sale of shares in limited liability companies with optimal application of the participation exemption. We ensure proper structuring and documentation.

Purchase of real estate through shares

Strategic advice on the new 4% rate in connection with the concurrence of VAT and transfer tax in share transactions.

Tax transparent real estate funds

Guidance on the transparency rules for real estate funds. We ensure adequate reporting and compliance with the amended regulations.

International real estate funds

Structuring cross-border real estate investments with optimal treaty application and advising on substance fulfillment.

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Quick-scan and scenario analysis

We analyze your real estate portfolio and tax objectives to identify all relevant scenarios, including pros and cons of structuring options.

Complete situation analysis

All tax scenarios mapped out

Advantages and disadvantages structuring

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Calculating scenarios and strategic choice

We calculate the fiscal impact of each scenario with concrete figures and provide clear recommendations based on your specific situation.

Concrete numerical impact

Extended options explanation

Clear recommendations

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Implementation and full guidance

We guide the full implementation so you can focus on your core business.

Full implementation guidance

All fiscal procedures taken care of

Hands-on guidance

Joint Real Estate Development in an Optimal Tax Structure

A large private investor with an extensive Dutch real estate portfolio was presented with the opportunity to demolish a leased property and develop a mixed-use project at this location, comprising residential units (apartments), offices, commercial spaces, and a hotel/restaurant.

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Real Estate

Frequently Asked Questions

An asset deal involves the direct purchase of real estate. A share deal involves the purchase of shares in an entity that owns real estate. Transfer tax, VAT and corporate income tax all play a role to determine which deal scenario is most tax efficient.

Through strategic structuring within property-escape rules and earnings-stripping limits. We analyze your financing structure and advise on optimizations that optimize your interest deduction.

The sale of newly constructed properties is taxed at 21% VAT, while the sale of renovated properties often is exempt from VAT. The distinction between the two is critical for a tax efficient deal. We advise on qualification and optimal structuring.

Get in touch

Do you have questions about real estate taxation? Our specialists are ready to help you.

Phone

+31 (0)20 435 6400

Email

contact@borgentax.nl
Susan Raaijmakers

Susan Raaijmakers

Ever-Jan Spoelder

Ever-Jan Spoelder