Private real estate leasing (POL) is a financing technique where a property that an entrepreneur owns privately and uses for professional activities is made available to their company through a leasing arrangement.
How does it work?
In this structure, the company enters into a lease agreement for the use of the property. The entrepreneur receives periodic payments in return, while the company uses the property within the scope of its activities.
Tax advantages
A key advantage is that the company can deduct the lease payments as a business expense, provided the conditions are met. At the same time, the entrepreneur receives private income, which is taxed according to the applicable tax rules.
What should you watch out for?
Please note: the correct application of POL requires strict compliance with tax and legal conditions. The payments must be market-conform and the arrangement must be economically justified. In practice, this technique is often thoroughly analysed to avoid reclassifications or tax disputes.
Our accounting firm is happy to guide you in analysing and setting up a private real estate lease tailored to your situation, so you can make the most of the possibilities without taking risks.