A broader view of real estate: expert solutions for the sector

Real estate, a specialised area of expertise. Baker Tilly understands this like no other. We know the issues the real estate sector faces. And we follow the latest developments closely. At Baker Tilly, we put our egos aside and work together across the various (international) disciplines. Onno Adriaansens (Tax Advisory partner): “The goal is to solve the client’s questions practically and professionally.”

What challenges does the real estate sector have to deal with? And what (new) laws and regulations need to be taken into account? The real estate sector is in a state of flux. So Baker Tilly’s real estate experts keep a close eye on developments, and proactively support their clients with the challenges that await them. Whether it concerns tax support, legal advice, assistance in the field of accountancy, corporate finance or concretising a policy strategy, Baker Tilly has the required expertise, says Robert Buitenhuis (Audit partner). “ESG, the housing shortage, new laws and regulations, clients see all kinds of opportunities and threats coming their way, but don’t know what they can or should do with them. We draw on our broad expertise to keep track of these different points of view, and respond quickly according to current events. We have served the entire real estate business chain for many years. From project developer to contractor. And from housing association to property investor. Baker Tilly is at home in real estate.”

On top of current affairs

Adriaansens cites an example of how Baker Tilly is not only on top of the latest developments, but also turns that knowledge into useful information for the sector. “In the run-up to Budget Day 2024, two new earnings stripping measures were discussed, which in many cases would mean interest was no longer deductible for real estate companies. That had quite an impact, especially on properties valued in the millions. We saw this scenario looming over our clients, and considered it our duty to address the issue early and proactively. For example, I was present during the debate in the House of Representatives and reported on it in the Vastgoedjournaal [a leading online real estate platform in the Netherlands]. There was a lot of criticism from among others from interest groups and advisors, including Baker Tilly. As a result, the proposed tightening of the interest deduction limitation for real estate companies was ultimately voted out of the Tax Plan by the House of Representatives through an amendment.”

Life cycle of a property

When Adriaansens looks at a building, he sees more than just bricks. “It might be an unorthodox thought, but I see a kind of life cycle. The project developer creates a property. A real estate investor maintains the property. And then we come to the sale of this property. Each step requires a specialist. From accountant to tax advisor. And from business economist to corporate finance expert. Fortunately, Baker Tilly has all those experts under the same roof, which enables them to work together efficiently for our clients. I sometimes call that Baker Tilly’s one-stop shop.”

Providing a wider perspective: no half-answers

Adriaansens explains that Baker Tilly’s specialists are not afraid to call on each other for the best results. On the contrary. The real estate sector requires a broader view, and seamless cooperation between different areas of expertise. “If a client needs Robert’s as well as my expertise, I don’t hesitate to introduce him. And I don’t mean ‘handing over’ the client, I mean ‘getting a specialist involved’. I remain the primary contact, while the client benefits from multifaceted knowledge.”

Buitenhuis adds: “Take the so-called component approach, for example: depreciating the different components of a tangible fixed asset separately. The tax treatment differs slightly compared to what is processed in the financial statements. That’s why we work together on this, with the various disciplines, early on. Not just from the point of view of the tax advisor, or of an accountant, but together. Mapping the whole picture for our client. So they don’t just get half of the picture, but the full answer to their question from us.”

Pushing boundaries

According to Buitenhuis, various real estate parties are currently pushing their ‘boundaries’. “More and more Dutch real estate organisations are expanding abroad, and vice versa. As legislation and obligations vary from country to country, it’s important to have the right contacts. We are part of the Baker Tilly International network, so we have short lines of communication with advisors in practically any country where Dutch real estate operators might want to do business. Together, we then provide the support the client needs. From the first cross-border transactions to choosing the right foreign legal form and major international structuring and restructuring. And from the Dutch VAT consequences to cross-border labour law issues and international transfer pricing compliance. Together with our network partners, we make sure that our clients get answers to pressing questions, swiftly and from their own trusted advisor, and are proactively updated about relevant developments. Again, not from pillar to post, but ‘now for tomorrow’!”

Time to get started

Do you have any questions about Baker Tilly’s services? Or would you like to know more about what we can do for you? Please do not hesitate to contact us. We would be happy to discuss what challenges and opportunities you may face.

The legislation and regulations in this area may be subject to change. We recommend that you discuss the potential impact of this with your Baker Tilly advisor.