How to Avoid Taxes and Risks When Buying Real Estate

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Each year, millions of people purchase real estate in various parts of the world. Most title their properties in their own name and will face certain troubles ahead because of their poor planning.

A wise solution is to purchase real estate through a company. Doing so can help you:

  • Save money on the closing price
  • Sell at a higher higher price
  • Potentially reduce taxes
  • Assist with privacy and security
  • Be flexible with estate planning
  • Reduce administrative costs

RAKICC Entities

Esquire Corporate Services is ready to help you incorporate a RAKICC entity to purchase real estate.

The Ras Al Khaimah International Corporate Center (RAKICC) is a corporate registry responsible for the registration and incorporation of companies in Ras Al Khaimah, United Arab Emirates.

Estate Planning & Tax Savings

RAKICC companies are a powerful tool for estate planning. They are a fast and efficient way to ensure that your property gets passed to your heirs as desired. Often, they can be used to plan around a country’s default inheritance succession laws. 

Administratively, it is far easier to divide up shares in a company that owns real estate than it is to have it titled in multiple names. Transferring shares is a simple and fast process compared to dealing with local governments. They also provide the ability to create different classes of stock – for example, voting and non-voting stock. This allows for rights and responsibilities to be customized for each heir and each property – one class of stock may gain from the sale of a property while another may have the rights to rental income. 

RAKICC companies also have the potential to help avoid certain taxes and regulations imposed by the local jurisdiction in which the property is located – many countries around the world have special rules for real estate transactions involving foreigners.

Privacy & Security

There are no public beneficial owner registries in the UAE making it possible to acquire, gift, and sell properties without the transaction becoming public knowledge. 

Transacting through a RAKICC entity encourages counterparties to deal in good faith. By negotiating pseudonymously, it becomes significantly more difficult for your counterparty to research your net-worth and adjust the price according to what they think you can pay rather than what the property is worth. 

Why Esquire

We’ve been doing international tax and estate planning for nearly two decades.

Our specialists will:

  • Incorporate an entity that is designed to hold your property 
  • Explain the other benefits your entity can provide given your personal situation
  • Teach you how to use and operate your entity

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