Government institutions

Government is a substantial direct player in the real estate market at various levels (national government, provinces, water authorities, and local authorities). As sole shareholder of large landowners (including the Dutch Forestry Commission, Dutch Railways, transport companies, and ports), the government is also indirectly involved with the real estate market.

Developments in relation to government

At present we see that the various government levels are showing increasing interest in Public-Private collaboration (PPS). A PPS structure is a form of collaboration in which government and business jointly realise a project (such as infrastructure, urban development, housing) on the basis of a clear division of duties and risks.

The purpose of PPS is to achieve added value: a better quality end product at the same cost, or the same quality at lower cost. This objective is within reach if government and business each do what they are best at. This leads to a win-win situation. PPS projects are specified in a Design, Build, Finance, Maintain, (Operate) agreement, in short, a DBFM(O) agreement.

Mazars adds value

Mazars devotes itself, among other things, to financial-legal advice on real estate transactions, and, as such, is involved in real estate transactions in which government is a player. Examples are the land allocation and urban (re-)development.

Furthermore, the professionals of Mazars have abundant experience in giving tax advice on real estate transactions and the (re)structuring of government bodies (transport, energy, development, and port companies).

In addition, in recent years, together with the government, private parties, and the tax authorities, the professionals of Mazars Real Estate have specialised in the legal framework and the fiscality of PPS projects.

Making use of this knowledge and experience, Mazars is at present advising in PPS projects. This advice covers, among other things, the optimisation of the PPS structure for those concerned (including the collaborators, shareholders, and partners), the timing of profit-taking (company tax), the deductibility of financing costs (company tax), the bringing in and disposal of real estate (VAT and transfer tax), the agreement about this with the tax authorities, and the fiscal review of the financial model.

Other Mazars services

In addition to our specialist real estate knowledge, Mazars offers a broad range of services such as accountancy and tax services, and can help you with problems in areas such as strategy, valuation issues, liability, IT, subsidies, training, and personnel policy. Our short communication lines enable us to quickly bring you into contact with the right person. This means that we are able to provide you with concrete, up-to-date advice.

The team

Would you like to know more? Then contact Walfried van Egeraat by e-mail or by phone: +31 88 277 20 90.