Las Terrenas | Why YOU Should Own Your Property in an LLC (Watch a beautiful Sunrise Afterwards)
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- čas přidán 9. 11. 2021
- www.RealEstateInLasTerrenas.com
Las Terrenas
Dominican Republic 🇩🇴
Love Where You Live
Join Kash as he explains confotour law again and goes deeper into an advance series on why you should own your property in an LLC even when it is a confotour project.
Kash is quickly becoming the go to source for North Americans looking to purchase in Las Terrenas. If you are looking to invest here he is a must contact source for your property search. He is an elite broker and investor here in LT.
Contact him by whatsapp 1.519.567.1785
Love Where You Live
Thanks Kash, your videos are always so clear and informative❤beautiful sunrise🥰🥰
Thanks Maria
Appreciate your kind words and encouragement as always. :)
Maritza (sorry :)
Lots of good reasons to use an LLC (SLR) outlined here and explained well. But the flip side is...if you are buying the property as your primary residence (i.e., you intend to live in it full time), there are several DIS-advantages to owning it in an LLC.
Firstly, individuals do not pay property tax on the first $150,000 of value in the DR, whereas corporations pay 1% of the company's assets. So if the property is NOT under confotur it can actually be MORE expensive to own in an LLC/SLR. For example, if you own a property assessed at $250K, you would pay the 1% only on $100K ($250K - $150K). A corporation has to pay 1% on its assets, so it will pay the 1% on the entire $250K. Note that if you are over 65, the property is your primary residence -- the only property you own, and you have owned it for over 15 years, the property is EXEMPT from taxes for an individual regardless of value -- this is not the case for a corporation.
Secondly, the SLR has to file tax returns, so chances are you will need to pay an accountant to do this for you every year.
Thirdly, if you do have to pay capital gains on the sale of the property later, the capital gains rate for corporations is 27% (vs max 25% for individuals).
If you are buying multiple properties for investment and/or rental income then an LLC is almost certainly the right way to go. If you are an individual buying a home for your retirement, this is something you should discuss with an attorney and maybe an accountant as there are several pros AND cons to it so it will depend on your specific situation.
Amazing feedback. THANK YOU!
Yes all is 100% correct.
One aspect that I personally appreciate it the ability to have a nice easy succession plan in place for the corporation / property it owns. If you know you will be leaving it to your children then you can add them to the corporation. To my understand then upon your departure from earth - your attorney can easily shift control to those shareholders. Relatively seamlessly. The other way can be time consuming and complex. I don't have direct experience here but to my understand - if you are Canadian it is even a little more complex as we need an apostle set up.
Each person really needs to do a SWOT Analysis I feel. strength / Weaknesses / Opportunities / Threat on the entire process.
Recap on the above
65 + older - no prop tax
If own in your name - pay tax on 150k + (confatour) of 1%
Own in a corp - 1% due on full balance
Corp needs annual filings ($500-800/ year)
Succession plan is very easy for property in Corp
Reach out direct if any additional questions.
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Cheers
KASH
Thanks for the great content!
Thanks for the sunrise and the sounds of the ocean!
This is an excellent presentation. Very Informative and truthful Info.
Appreciate your comments. That's my goal with the info. There is too much BS out there in this industry and j want to cut through the nonsense. Thanks for the support.
Another fellow Canadian who loves the beach! Hello....and thank you for sharing a taste of paradise. I love the DR. Confotour would avoid tax in DR but still have to pay capital gain tax in Canada on sale of unit, correct? There is a treaty to avoid double taxation so if pay capital gain in DR (27% flat tax), you report that in Canada and obtain a foreign tax credit on the amount paid to avoid double taxation. Difference still owed to CRA if capital gains tax is higher when calculated Canadian way. or none if lower. Correct?
BTW I am assuming still a Canadian resident or no tax owed to Canada i.e. staying 6 months or less in DR
Hi Pat
I am actually not 100% on this so don't want to give any input thay could be incorrect.
Where are you from?
Send me a whatsapp I can connect you with my sister who is an accountant in canada and I feel she could assist you....
Are you planning to move here?
Whatsapp me
@@iLoveLasTerrenas I am from Canada too and not planning on moving there permanently, just to spend my winters there (4-5 months) so would still be a Canadian resident. I went to the source and asked the CRA and the answer above is what they told me. I am just worried that if I obtain residency in the DR too, the DR government may tax my Canadian investment income. I believe there is an exemption for pension income i.e CPP but not sure of the former. I am not retired yet. Perhaps there is no advantage in obtaining residency i.e. just pay fine at the airport when you leave after the 30 day Tourist Visa? Especially true if it costs $3000-$5000 US as you mentioned in a previous video. Thoughts?
Can you put your short term rentals as a SLR ?
I think that answer is a yes but send me a whatsapp and I will get you connected with our attorneys for a def answer
is an LLC of the usa valid in the DR?
To my understanding you need to have an llc set up here. It is called an slr
Coats about 1400 USD to do
You need one registered in the DR, but you can make it 99% owned by your US LLC.