A question for Estate Agents/Business Lawyers

[jill]

If your property is the only asset of a company, is it not possible to sell the company rather than the property?

We can still do that here in Italy and purchase tax on a company is far less than that on sale of real estate.

It also can help in the situation where there are pre-emptive rights by neighbours on agricutural properties as the actual property has not changed hands and is still registered in the catasto as belonging to the company, thus the neighbours do not have to be informed.

[Carol]

short answer: yes its possible and its beginning to be done now that some foreigners are selling too. Its saves 5% RETT but some of the saving is lost on the due diligence cost.

[Madgolfer]

quinne said:

short answer: yes its possible and its beginning to be done now that some foreigners are selling too. Its saves 5% RETT but some of the saving is lost on the due diligence cost.

Hi Carol,

Can you explain the "due diligence cost" bit ?

Cheers.

[Carol]

If you buy a company, you assume the rights and responsibilities of that company. So you need to check the accounts and the legal structure. You need to check for example that the company is not being sued, that it legally owns the property and that it has paid all its debts with no looming tax bills. However, I don't wnat to put people off: If the company only ever bought the house then its pretty much dormant and the checks are all very straightforward.