What structure or vehicle should be used for purchases in your jurisdiction?

In Germany we optimise criteria in accordance with tax planning, liability issues, civil law and financing.

Very often an LLP is the best legal form for an SPV, but we also use that together with a general partner limited from the British Virgin Islands (BVI) or another offshore jurisdiction, in order to prove the buyer has no permanent establishment in Germany.

Under that scenario they are not obliged to pay trade tax, which is of enormous importance. This can have consequences though, because banks are expected to have abranch of the company registered in Germany for security purposes, which can damage the tax structure.

Read the full Virtual Round Table Series from the IR Real Estate Working Group here.