Buying property in algarve off shore

Are you being encouraged to think about this by an agent or vendor? If so, be suspicious. If you search the forums you will probably find more questions about how to bring a property back onshore and how to minimise the penalties for so doing.

I am no expert but I don't know of any real benefits.

One disadvantage is that your company will be forced to retain the services of a Fiscal Representative in Portugal. If you own the property personally and are an EU resident, this is optional.

Thank you for your reply. My funds are tied into a UK company at the moment. To draw them will mean large dividend payments in tax.

I was hoping to limit/avoid this by hopefully transferring funds from one company to another. Then buying the property in a company that just owned the new property. I realise this has some implications in itself

I have a meeting with my accountant tomorrow so hopefully all become clear (or not)

Regards
Dan

When we briefly considered buying through a UK company years ago there was also the snag that use of the property by a director was considered as a benefit-in-kind and taxable accordingly. We were told then that to avoid the benefit the property would actually have to be occupied on a commercial basis (not just available for commercial use), so maybe 80% of the costs would be taxed as a benefit-in-kind.

There are several solutions to this issue - the easiest is off course buying the property and leaving the tax issues with the seller. However, if the 'package' is worthwhile, it maybe worth buying the company with its problems, as there are several solutions - but have to do the maths beforehand.