When it comes to investing in a Candy Brick villa, it’s not just about owning a beautiful modern property with a stunning sea view. It’s also about making smart investment choices that can save you money, time, and headaches.
In this blog post, we’ll explore the best investment setup to maximize your returns and ensure a seamless experience.
Investing Through a Croatian Company
In most cases, the optimal solution for investing in Candy Brick villas is to open a company in Croatia and conduct your real estate transactions through that entity.
The Company-Based Investment Approach
This approach offers several significant benefits:
- Easy and Cost-Effective Setup:
With the right support setting up a company in Croatia is a straightforward and cost-effective process.
- VAT Savings:
Investing as a company allows you to save on Value Added Tax (VAT). You’ll only need capital to cover the net price of the property, as you can deduct the 25% VAT from each payment.
This applies to payments made through your company, resulting in significant cost savings compared to purchasing as an individual.
- Low Corporate Profit Tax:
Croatia offers a favorable corporate profit tax rate of 10%. You can deduct all company-related costs from your taxable income. You can benefit from a 5% investment price deduction over 20 years, known as “depreciation.” These factors often result in near-zero profit taxes.
- Financing Opportunities:
As a Croatian company, you’ll find it easier to secure financing from local banks and institutions.
If you don’t need financing for your current project, having a company in place can be beneficial for future investments.
- Villa Resale:
The option to sell your finished villa at a higher price may arise in the future. Selling the property through your company can simplify the process, as share transfers incur no VAT. Croatia allows you to sell 100% of your company shares after holding them for over 24 months without paying profit taxes.
- Hassle-Free Management:
Our partner investors and our partner accountant are well-versed in managing these entities.
From opening the company to setting up a bank account, and managing rentals, the process is streamlined and efficient.
By setting up the right investment structure through a Croatian company, you can enjoy ease of operation, significant tax savings, financing opportunities, and the flexibility to sell or reinvest in the future. It’s a strategic choice that enhances your investment journey and ensures a hassle-free experience.
For a comprehensive guide on how to establish the correct investment setup, please refer to our detailed resource.
Invest with confidence and let your Candy Brick villa be a smart and rewarding investment.
[Disclaimer: This blog post is for informational purposes only and does not constitute financial or legal advice. It is recommended to consult with professionals in the field for personalized guidance.]