Limited partnerships

Homburg Participaties offers investors a variety of ways to invest in property in Canada and Lithuania. One of these possibilities is the nonstock corporation structure.

Clients can join a nonstock corporation by purchasing one or more participating interests in it. This nonstock corporation becomes a limited partner in a Canadian Limited Partnership, which then purchases the property.

As in a Dutch ‘commanditaire vennootschap’ (CV), the partners in a limited partnership have limited liability. Their liability is limited to the value of their stake in the partnership. A limited partnership always has a general partner as well. Homburg L.P. Management, Inc. acts as the general partner of this limited partnership and therefore bears the risks of the property investment.

Canada

Taxes

The investor is taxed in Canada. The Netherlands and Canada are signatories to a treaty to prevent double taxation. For that reason, there is no tax to be paid in the Netherlands on the revenues from the Homburg nonstock corporation. This makes the nonstock corporation an advantageous investment structure from a taxation perspective.

• Indirect investment in Canadian property
• Duration 7 years
• Returns (including sales result) between 13% and 18%
• Revenue is distributed twice per annum

The following nonstock corporations have been placed successfully

• Wellington Courts
• Holland Gardens
• Mac Ewan
• Clareview
• Bonavista Square
• Manhattan
• Fairmont
• Bathurst Mall
• Vintage Park
• Citadel Hill

Lithuania

Taxes

The investor invests via a Dutch company, which in turn invests in a Lithuanian company. The Lithuanian company has to pay tax in Lithuania. By making use of the exemption for participating interests, the Dutch company is exempted from taxes in the Netherlands.

Key details

• Indirect investment in Lithuanian property (land banking and project development)
• Duration 2-4 years
• Returns (including sales result) between 18% and 23%
• Revenue is distributed at the end of the investment period

The following nonstock corporations have been placed successfully:

• Riese
• Gulbe
• Gulbe 2
• Mercurius

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