This article does not constitute legal or tax advice. All decisions regarding property ownership structures should be made in consultation with qualified legal and tax advisers in each relevant jurisdiction.
Why Structure Matters
For anyone who owns property in more than one country, the structure through which each property is held is one of the most consequential financial decisions they will make. The choice of ownership vehicle affects income tax, capital gains tax, inheritance and estate tax, asset protection, privacy, and administrative complexity. In an era of international tax transparency, exchange of information agreements and anti-avoidance legislation, getting the structure right matters more than it used to, and it is more complicated.
The fundamental question is deceptively simple: should a property be held in the owner's personal name, through a corporate entity, within a trust, or through some combination of these vehicles? The answer depends on a matrix of factors including the owner's tax residency, the location of the property, the owner's family structure and succession plans, and the rules in each relevant jurisdiction. This guide sets out the tax rules and official figures for each vehicle; the decision process itself, including financing and the cost of changing course, is in buying abroad: the ownership structure decides.
Personal Name Ownership
Holding property in one's personal name is the simplest structure and, in many cases, the most appropriate. There are no formation or maintenance costs, no regulatory filings beyond those required of any property owner, and the ownership is transparent. For many owners, particularly those tax-resident in jurisdictions with favourable capital gains treatment, personal name ownership is entirely adequate.
The principal disadvantage of personal name ownership is inheritance tax exposure. In the United Kingdom, the standard inheritance tax rate is 40% on the part of an estate above the £325,000 threshold (GOV.UK, checked 28 September 2026). Someone based abroad pays it only on UK assets, such as UK property; since 6 April 2025, whether a person's non-UK assets are also in scope depends on long-term UK residence — broadly, UK tax residence in 10 or more of the previous 20 tax years — rather than on domicile (GOV.UK, checked 28 September 2026). In the United States, federal estate tax applies above a basic exclusion amount that the IRS gives as $15,000,000 for deaths in 2026, and several states levy their own estate or inheritance taxes. A foreign owner who is neither a US citizen nor US-resident is in a very different position: the IRS requires an estate tax return where the person's US-situated assets, which include US real estate, exceed $60,000 at death (IRS, both checked 28 September 2026).
Personal name ownership also offers no asset protection in the event of litigation, divorce, or creditor claims. For owners with significant liability exposure, that can matter as much as the tax. What a succession bill does to heirs who must pay it in cash, on a short deadline, is the subject of the property your heirs cannot afford to inherit.
Corporate Structures
Holding property through a corporate entity has historically been common among international buyers. A company incorporated in a jurisdiction such as the British Virgin Islands (BVI), Jersey, Guernsey, or Luxembourg holds legal title to the property, while the beneficial owner holds shares in the company. The traditional arguments were that shares can change hands without a property transfer tax, that the company adds a layer of privacy, and that shares can pass to heirs without probate in the property's jurisdiction.
Several of those arguments have been removed by legislation, and the UK is the clearest example. UK residential property held indirectly by individuals — including through an overseas company, or by the trustees of a trust they created — was brought within the scope of UK inheritance tax with effect from 6 April 2017 (HMRC Inheritance Tax Manual, IHTM04311, checked 28 September 2026). The Annual Tax on Enveloped Dwellings (ATED) applies to UK residential property valued at more than £500,000 held through a company or similar wrapper. HMRC's chargeable amounts for 1 April 2026 to 31 March 2027 run from £4,600 on property valued at more than £500,000 and up to £1 million, to £303,450 on property valued at more than £20 million (GOV.UK, checked 28 September 2026). The amounts are restated for each chargeable period, so take them from GOV.UK for the year you are actually in rather than from a figure quoted in an article. Stamp Duty Land Tax is charged at 17% on residential property costing more than £500,000 bought by certain corporate bodies, a rate that has applied since 31 October 2024 (GOV.UK, checked 28 September 2026); reliefs exist, so establish which apply before assuming the charge.
In France, property held through legal entities is subject to an annual tax equal to 3% of the market value of the property, unless the entity qualifies for one of the exemptions, which turn on where the entity has its seat, on the relevant treaty position, and on the entity disclosing its owners to the French tax authorities. The charge sits at articles 990 D to 990 G of the Code général des impôts and is set out in the French tax administration's BOFiP guidance (checked 28 September 2026). Other European jurisdictions have their own rules aimed at property held through entities, so the French charge is an example of the pattern rather than the only instance of it.
Trust Structures
Trusts remain one of the most flexible tools for holding property, particularly for multi-generational planning. A trust separates legal ownership (held by the trustee) from beneficial enjoyment (by the beneficiaries), and when properly structured can provide succession, asset-protection and tax benefits.
The UK rules illustrate why "put it in a trust" is not a simple answer. An outright gift to another individual can escape UK inheritance tax if the giver survives seven years (GOV.UK). A transfer into most trusts is treated differently: above the £325,000 threshold it can attract an immediate charge, at 20% where the trustees pay; further charges arise at each ten-year anniversary of the trust, and up to 6% when assets leave it (GOV.UK, "Trusts and Inheritance Tax", checked 28 September 2026). And if the settlor keeps benefiting from the property — continuing to live in a house they have given away, for example — the gift-with-reservation rules treat it as still part of their estate at death (HMRC IHTM14303, checked 28 September 2026).
Offshore trusts established in jurisdictions with developed trust law, such as Jersey, Guernsey or the Cayman Islands, are used by internationally mobile families, usually with professional trustees. Whether an offshore trust achieves anything depends on the tax rules of the settlor's and beneficiaries' countries and of the country where the property sits, not on the trust's location.
Trusts are also subject to increasing scrutiny and reporting. The OECD Common Reporting Standard (CRS) requires financial institutions to report information about trust accounts to tax authorities. The EU Anti-Money Laundering Directives have imposed beneficial ownership registration requirements on trusts with connections to EU member states. And many jurisdictions now require trusts to keep registers of beneficial ownership that can be accessed by tax authorities and, in some cases, by others with a legitimate interest. How much of an owner's identity each kind of register actually exposes is covered in how private is property ownership.
Foundations and Other Vehicles
Private foundations, particularly those established under Liechtenstein, Dutch, or Panamanian law, serve a similar function to trusts in civil law jurisdictions where the trust concept is not natively recognised. Foundations can hold property, provide governance structures for family wealth, and offer succession planning benefits.
Limited partnerships and limited liability companies (LLCs) are widely used in the United States for property ownership, offering pass-through tax treatment, liability protection, and flexibility in estate planning through the transfer of partnership or membership interests.
The Compliance Imperative
The single most important principle in modern cross-border property structuring is compliance. Structures designed primarily to keep assets out of sight of tax authorities no longer work in the way they once did. The combination of automatic exchange of information under CRS, beneficial-ownership registers, the Pandora Papers revelations and sustained political focus on tax fairness means that any structure must be capable of withstanding full transparency and scrutiny.
In practice, structures are designed by independent lawyers and tax advisers in each relevant jurisdiction, sometimes alongside a private bank's or trust company's in-house team. A bank's structuring desk can be a useful starting point, but it is not a substitute for advice that is independent of the institution that will hold the assets.
The aim is not to avoid tax but to pay what the law requires and no more, with a structure that is sustainable across generations and whose administrative burden is proportionate to the benefit. That requires ongoing attention, because the rules — as the UK changes of 2017 and 2025 above show — keep moving.
Structure follows substance, not the other way round. This remains general information, not tax or legal advice — every figure here can change, and only qualified advisers in each jurisdiction should design your holding structure. Where a company owns the property and pays its costs in another currency — service charges, local taxes, contractors — a multi-currency business account such as Airwallex can hold and pay in several currencies; it is a payments tool, not a structuring one, and property held through any wrapper stays illiquid. Our other tax and ownership guides are collected under Tax & Structure.
Frequently asked questions
What is the Annual Tax on Enveloped Dwellings (ATED)?
A UK annual charge on residential property valued at more than £500,000 held through a company or similar wrapper. For 1 April 2026 to 31 March 2027, HMRC's chargeable amounts run from £4,600 for property worth more than £500,000 up to £1 million, to £303,450 for property worth more than £20 million. The amounts are restated each year.
What stamp duty does a company pay on UK residential property?
Stamp Duty Land Tax is charged at 17% on residential property costing more than £500,000 bought by certain corporate bodies, a rate that has applied since 31 October 2024. Reliefs exist, so establish which apply before assuming the charge.
Does holding UK property in an offshore company avoid inheritance tax?
No longer. Since 6 April 2017, UK residential property held indirectly by individuals, including through an overseas company or a trust they created, has been within the scope of UK inheritance tax, charged at 40% on the part of an estate above the £325,000 threshold.
Does France tax property held through a company?
Yes. Property held through legal entities is subject to an annual tax of 3% of its market value unless the entity qualifies for an exemption, which turns on where it has its seat, the treaty position and whether it discloses its owners to the French tax authorities.
When does a foreign owner of US property owe US estate tax?
A person who is neither a US citizen nor US-resident must file a US estate tax return where their US-situated assets, which include US real estate, exceed ,000 at death. That is far below the ,000,000 basic exclusion the IRS gives for citizens and residents dying in 2026.
