Real estate and private wealth

Real estate remains a popular investment category for (ultra) high net worth individuals (UHNWIs). Whether it concerns purchasing a home for personal use, setting up a real estate portfolio, or structuring real estate through an (international) vehicle, customized tax and legal advice is indispensable.

HVK Stevens advises on real estate structures, transactions, and tax optimization, with a focus on privacy, compliance, and returns. Both in the Netherlands and internationally.

Real estate HNWI: primary residence and second home in box 1 or box 3

The tax treatment of owner-occupied homes is constantly changing. Regulations surrounding mortgage interest relief are changing, and court rulings can also have consequences for income tax returns. In addition, international tax treaties play a role in the case of second homes, whether in the Netherlands or abroad. 

Mortgage with your own private limited company

Financing your own home through your personal private limited company can be attractive, provided it is set up properly. Interest relief remains possible but requires market-based conditions and formal documentation. HVK Stevens provides support in setting up, restructuring, or repaying such loans, with attention to both tax and legal aspects.

Short-stay rentals and VAT

The rental of real estate is usually exempt from VAT, but this may be different for short-stay rentals. Think of vacation homes or apartments that are rented out to tourists for short periods. In that case, 9% VAT is payable, but there may also be a right to deduct VAT on purchase or renovation. Revision rules make this area complex, but also fiscally interesting with the right guidance.

Investing in real estate

Entrepreneurs, private individuals, and families who want to invest their assets in real estate can do so in various ways: from direct purchase of real estate—privately or through a limited liability company, cooperative, (limited) partnership, or foundation, alone or together with others—to participation in real estate funds. HVK Stevens advises on structure, the tax consequences of financing forms, tax exemptions, and legal coverage, with a focus on sustainability, coherence, and future-proofing. Consider setting up a real estate fund through a limited partnership or taking advantage of the renovation exemption for VAT. 

VAT position of real estate investors

Even when real estate is held privately, there may be VAT entrepreneurship. Correct VAT treatment is essential, particularly in project development, redevelopment, or short-stay rentals. Our specialists ensure optimal alignment between income tax, real estate tax, corporate income tax, and VAT, with an eye for tax efficiency and the broader context of your plans and ambitions.