Buying an apartment in Spain via a UK Ltd Company

[ColinM747Participant]

I wonder if any one can help?

I am thinking about buying an apartment in Spain. We are considering buying it via a limited company that we have set up in the UK. There will be no mortgage involved as it’s cash from the company account coupled with a Directors loan.

Can anyone please help me identify the costs of going down this route. I understand the costs if I purchased this as a private individual, but I can’t seem to nail the numbers using the limited company route.

Any feed-back will be much appreciated.

Cheers

Colin

[Mark StücklinKeymaster]

Hi Colin,

Have you read this article on the pros and cons of buying through a company?

Buying and Owning Spanish Property through Companies: Pros and Cons

Does that answer your question?

[katySpectator]

Oh dear….companies are a no no….unless you are spending millions!!

[Mark Roach – Spanish Tax Consultant & UK Limited Company DirectorParticipant]

Hi Colin,

If you purchase your Spanish property into a UK Limited Company the costs will be the following.

1: Around £5300 UK & Spain legal fees for setting up the UK Company to accept & buy the property in Spain correctly.

2: Around €1500 to cover the Spanish Notary & Land Registry Fees.

3: 10% Property Purchase Tax in some Regions of Spain but can be slightly less in some Regions. There is a method of saving the 10% Property Purchase Tax if the property was invested into a UK Company in exchange of shares.

If you were to purchase a Spanish property into a UK Limited Company then the Spanish Inheritance Tax savings would be around €85,000 if the property was going to be bought at €300,000 and left to a Group 3 Beneficiary in Spain.

If anyone would like to contact me directly I can supply a Spanish Inheritance Tax planning website that allows you to calculate your own specific Tax liability if you buy in your own name a Spanish property, also there is a on-line Audio Movie of around 4 minutes that presents the full process and advantages of UK Limited Company ownership.

Regards, Mark Roach.

• This reply was modified 4 years, 10 months ago by  Mark Roach - Spanish Tax Consultant & UK Limited Company Director.

[Graham PooleyParticipant]

I had the same question Colin, thanks for asking.

[Graham PooleyParticipant]

and thanks to both Marks for their answers too!

[Author]

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