Does real estate fall under the minimum investment criteria?
Posted: Wed Feb 19, 2025 7:48 am
Financial investments and/or financial portfolios are excluded from the scope of the minimum investment criteria for MIBC companies.
Form over Substance: The importance of aligning business activity with the type of substance a company possesses
A connection between the type of business activity and the type of substance is necessary to ensure compliance with the law - any inconsistency may raise questions about the company's tax liability by the tax authorities.
The investment, which needs to be identifiable in nature, must be controllable and honduras mobile database generate future economic benefits for the company. Furthermore, the investment must be productive or active rather than passive in nature.
Can you invest more than €75,000?
Yes, it is possible to invest more than the minimum investment level of €75,000. Investments should always be made on market-related terms.
Only real estate, purchased in Madeira, falls within the definition (real estate, located outside Madeira, does not qualify for the MIBC minimum investment criteria).
However, investments in property in Madeira (such as short-term accommodation), which are not used for the purpose of a specific business activity qualifying under the scope of the MIBC, will not meet the investment requirement.
Form over Substance: The importance of aligning business activity with the type of substance a company possesses
A connection between the type of business activity and the type of substance is necessary to ensure compliance with the law - any inconsistency may raise questions about the company's tax liability by the tax authorities.
The investment, which needs to be identifiable in nature, must be controllable and honduras mobile database generate future economic benefits for the company. Furthermore, the investment must be productive or active rather than passive in nature.
Can you invest more than €75,000?
Yes, it is possible to invest more than the minimum investment level of €75,000. Investments should always be made on market-related terms.
Only real estate, purchased in Madeira, falls within the definition (real estate, located outside Madeira, does not qualify for the MIBC minimum investment criteria).
However, investments in property in Madeira (such as short-term accommodation), which are not used for the purpose of a specific business activity qualifying under the scope of the MIBC, will not meet the investment requirement.