Suppose you are considering contributing your company in a private company with limited...
Home ownership through the company
You intend to buy a new home and you want to be sure that your financing is arranged in a proper manner, both fiscally and legally. As a director and major shareholder, it may be interesting to borrow the required financial resources from your own company. Or you may want to finance the purchase of your children's home from private resources. Our specialists will be happy to answer these and other questions on financing the own home.
Change to law and regulation
Legislation and regulations regarding the financing of the own home has considerably changed since 2013. This means that the loan you take out with your own company must meet several requirements. As of 1 January 2013, it is mandatory, among other things, to repay loans for the own home on at least an annuity basis, unless you are subject to the transitional law.
With regard to the own home, there are several aspects:
- Determining the capped amount to be borrowed, so the loan will qualify as a home loan, the so-called maximum owner-occupied home debt.
- Determining the applicable legislation and regulations for determining the maximum maturity of your loan and the maximum owner-occupied home debt in case of refinancing the loan
- Determining the applicable legislation and tax consequences of the various types of loans (loan under the transitional law, loan under the new law, bridge loan) when purchasing a new home
- Determining the commercial interest on the basis of maturity, established securities and financial circumstances of the debtor
Mazars can assist you with:
Mazars’ specialists will be happy to help you draw up a loan agreement, taking into account the applicable legislation and regulations. We can also provide your income tax return and help you apply the correct regulations regarding the own home.
Do you have a substantial interest in a company? You may have to pay tax on the income thereof....