Reply To: Buying & Renovating a property as a Developer

#228246
HG
Participant

Hello. Yes, there are tax breaks, BUT obviously its complicated:

-Company has to be signed up as immobilaria (no other industry).

-Buying the property is 2% tax instead of appr 10% (if buying personally). HOWEVER, the property needs to be sold within 5 years and cannot be rented out. If you rent it out, you get hit with the difference 10%-2%. Same thing if you keep it for longer than 5 years.

-All major renovation costs are tax deductible.

 

I hope this helps you. For me this tax thing was a maze, but I continue to educate myself.