c5c6fea75a Niseko Buyer Guide Search Primary Menu Skip to content About usReal Estate companies Search for: Investment Advice Legal Structures to invest in Real Estate June 7, 2014 nisekobuyerguide Leave a comment As a foreigner, or a non Japanese resident, you can obviously acquire a Property under your own name this being the simplest and most efficient method. As a result, summaries or full translations of documents are often prepared, which leads to increased transaction costs. Overall, we expect that Japan will continue to be the focus of attention for foreign investors for the foreseeable future. Build a website with WordPress.com . Until recently (see the paper of Baker & McKenzie in the notes below), the TK Operator had to be licensed under the Real Estate Law in order to be allowed to purchase real estate properties, so to circumvent this issue most TK partnerships were investing in trust certificates issues by trust banks (the banks were the legal owners of the property).
%d bloggers like this:. In the TMK structure, the investors are able to be active decision makers, while in the GK-TK structure, the investors need to be silent investors. Special Purpose Company Tokumei Mokuteki Kaisha A TMK is a special legal entity designed after the bubble burst in the 80s or 90s to help securitizing illiquid real estate assets. The opinions expressed are those of the author(s) and do not necessarily reflect the views of the firm, its clients, or Portfolio Media Inc., or any of its or their respective affiliates. However, the TK distribution to an offshore investor is subject to an attractive reduced 20.42 percent withholding tax in the absence of treaty protection. That required trust fees to be paid, which reduces the overall profitability of the scheme and it required the TK Operator to have a financial license under the FIEL (Financial Instrument & Exchange Law). [2] Report, PWC and Urban Land Institute, Emerging Trends in Real Estate Asia Pacific 2014 (November, 2013). The typical loan for a GK-TK structure is evidenced by a loan agreement executed by the borrower (GK) and the lender (promissory notes are seldom executed). I hope though that if you read this article you could follow some conversations that your real estate agent may have, in the case you want to join forces with friends/relatives/colleagues to purchase several properties and share the benefits.
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