community property

It is a group of people who decide to share their property or rights, in order to constitute a joint estate and thus perform an economic activity. The union that is formed can be created by a private contract or not.

Some of the features that have are:

  • There is no legal relationship among members
  • The minimum number of community members is two, but there is no maximum number.
  • No minimum capital required.
  • Unlimited and personal liability of the members.
  • These entities are taxed on their income allocation, which means that they are subject to income tax and the VAT.
Among the advantages of this legal form:
  • Easy to formalize.
  • No minimum capital is required.
  • Greater ease in getting loans.
The disadvantages:
  • The responsibility of the partners.
  • High tax rate on personal income tax.
  • The benefit is distributed according to the agreed fee.


What is Community Property?

What is Community Property?