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Estimados members,
I own a couple of LLCs in the US that I use for renting properties in the name of the LLCs both in the US and in Central America properties.
Can someone share any experiences of using LLCs from the US to buy-to-rent properties in Spain (Costa Brava and/or Balears).
I’m a Spanish expat (left in ’96). It seems that legislation and regulation has changed so much that I’m not really sure if foreign companies (EU members or not) can directly operate without having a subsidiary (sucursal) or forming a wholly owned Sociedad Limitada (SL) @3,000 Euros!
How easy/difficult is it to find finance ‘locally’ with Loan to Value in the 50-70% range?
Any help and shared experiences would be appreciated.
Gracias. -
What is LLC ??? Things have changed since you left. The socialist mentality has not changed.
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@shakeel wrote:
What is LLC ??? Things have changed since you left. The socialist mentality has not changed.
limited liability company (I assume)
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This is the advice of Romà Bosch, of D&G Advocats in Barcelona
“ Investing in Spain through a US LLC is totally allowed. The company, as any foreign investor, will have to comply with the Spanish formalities on foreign investments.
However, regards obtaining financial resources, Spanish banks are quite reluctant to lend money to non-resident companies despite of the value of the property and the ration between the value and the amount to be borrowed”. -
This is the advice of Victor Schrijner, of RCD Asesores Legales y Tributarios in Barcelona
Foreign investors are allowed to operate in Spain without having a branch (sucursal) or a wholly or partially owned subsidiary (sociedad filial), although there are certain formalities that must be complied with the Spanish forex authorities.
Please note, however that the tax impact will differ depending on the structure through which the investment is owned and the income obtained. Such tax considerations need to be carefully analyzed in the light of the existing double taxation treaties and the corporate structure existing in the country of residence of the investor.
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S&J Solicitors – Accountants advise:
The non resident company will have to apply and obtain its C.I.F. number (administrators will have to obtain their/his/her N.I.E. numbers) and, as per the Spanish money laundrey Act, all funds coming from abroad MUST BE fully detailed verified and procedency checked.
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