Economisch eigendom
Economic ownership
Economic ownership is the situation in which a party bears the economic benefits and risks of an asset without legal title being held in its name.
In Dutch law, a distinction is drawn between legal ownership and economic ownership. Under economic ownership, the party concerned is entitled to the proceeds and bears the burdens and risks, while formal title vests in another. This structure commonly arises in financing arrangements, such as sale-and-leaseback transactions or security arrangements.
The concept is relevant because it has implications for taxation, insolvency and enforcement. For example, the economic owner may be protected in the legal owner’s insolvency through set-off or separation.
In practice, economic ownership is frequently established by contract to regulate the parties’ true economic position without effecting a full legal transfer.
“The investor acquired the economic ownership of the immovable property, although legal title remained vested in the seller.”
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