Would Like to Buy a Property in Amsterdam - Can I Use a Corp?

[friver]

I'm a US citizen and would like to buy a property in Amsterdam. I have a US S-corp that receives most of its income from the UK and Europe. Is it feasible to establish an entity in Amsterdam (or move my existing one), and have the entity buy the property and pay for the expenses? I would use the property as my European office (but it's also a vacation home). I'm also fine with leaving all income earned from the entity to remain in Amsterdam (then I wouldn't have to pay US taxes, correct?).

Is this a good idea to help buy and pay for the property using pre-tax corporate earnings? Thanks!

 

[Fulton Abraham Sanchez]

I'm a US citizen and would like to buy a property in Amsterdam. I have a US S-corp that receives most of its income from the UK and Europe. Is it feasible to establish an entity in Amsterdam (or move my existing one), and have the entity buy the property and pay for the expenses? I would use the property as my European office (but it's also a vacation home). I'm also fine with leaving all income earned from the entity to remain in Amsterdam (then I wouldn't have to pay US taxes, correct?).

Is this a good idea to help buy and pay for the property using pre-tax corporate earnings? Thanks!

F, hi. If it is S corp profits to be used for the purchase, taxes are paid (when you filed your tax return as S corp are pass thru) and you need not worry. To form a company in Europe you need first to get a tax ID there and later open the company. The US S Corp will still need zero a tax return or face a penalty from IRS $195 per month per owner.

 

[friver]

Hi, thanks FAS for the response. I was thinking the European company could purchase or pay for the property pre-tax as my office, is this possible? Thanks for letting me know about a European tax ID, I'll look into that. Ok, yes I would keep my US S-corp and continue to file tax returns.