Corporate Ownership (page 3/3)
Because of the advantages of owning a property through a company, the search was now on for a practical solution to what threatened to become a real additional tax burden on many (mostly foreign) Algarvean property owners. The solution was to find countries that were not on the Black List, which offered the possibility for companies to “migrate” to. There were 2 clear possibilities: Malta, and Delaware.
The effect was that thousands of companies owning properties here in the Algarve were on the move to a new home. Malta, being English speaking and a full member of the European Union, was immediately attractive and many companies re-domiciled there. Delaware, being one of the 53 States of the USA also offered confidence, and many companies went there.
Now, in 2006 at last, most of the migrating has been completed and the situation has been clarified, giving buyers and sellers the confidence that their properties are now owned by companies in jurisdictions in White Listed areas. Owners have generally complied with Portugal's requirement that property be owned in an acceptable jurisdiction and it is now quite normal to see Algarvean properties in Estate Agents windows described as owned in Malta or Delaware and it is completely acceptable for properties to continue to be owned by such companies. The majority of properties in and around Quinta do Lago continue to be sold by the sale of the shares in the companies now based in Malta or Delaware. There continue to be very real advantages in purchasing property in this manner, and you should consider this carefully when you find that the property you want to buy is owned by a company based in Malta or Delaware.
