Valg af selskabsform ved investering i ejendomme

Bjørn Bøjden Erichsen

Student thesis: Master thesis


When private investors wish to invest in real estate, they often do so through a company. There are several kinds of companies suitable for this type of investment. This thesis focuses on the two that are most commonly used – limited partnerships (Kommanditselskaber) and limited companies. The purpose of the thesis is to clarify which of these kinds of companies should be used for a real estate investment. The regulation of real estate investment through the two kinds of companies is described to thereby clarify whether or not one is more profitable for the investor than the other. The first part of the thesis examines which company and tax law conditions an investor in real estate should be aware of when choosing a company type for the real estate investment. This is done through an examination of the different corporate and tax rules regulating the limited partnerships and limited companies and how these apply to the different parts of an investment in real estate. Hereby it is shown that a limited partnership can be constructed as having the same limited liability as limited companies. Therefore, it is concluded that there are no important differences between the corporate regulation of the limited partnerships and the limited companies, respectively. Afterwards it is shown how the investments in real estate through the two kinds of companies are taxed. On the basis of the conclusions in this paragraph the effects of the different taxations is then measured in the following paragraph. This is done by applying an economic model, the DCF-model, and thereby valuing the investment. Using the DCF-model the fiscal treatment is quantified in an example to show the effects of a real estate investment through a limited partnership and a limited company, respectively. This shows that the value – and thereby which type of company is the most profitable for the investor - varies depending on the size of the investment and whether the real estate investment is valid for depreciation. The thesis concludes that the bigger the investment is, the more it favors the usage of a limited partnership. Even more it concludes that the investment in real estate that is subject to depreciation should be conducted through a limited partnership.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
Publication date2011
Number of pages95