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i’m buying a resale house in costa blanca that has a company name as the owner on the title deeds. The company is a French Company.
How do I ensure that I am buying the property from the person or persons entitled to sell it?
Is there anything I need to be aware of regarding this type of sale.
Has anyone bought a property that was previously registered at the land registry in the name of a company?
is there any way of finding out the legitimacy of a french company and or its owners?
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Tony
be careful about buying a house owned by a company – make sure you are buying the house NOT the company.
What sometimes happens is someone will set up a company for tax purposes to buy a house. When they sell it they are transferring shares in the company with the house registered as the sole asset. Thus you only pay a 1% transfer tax for transferring the shares rather than the usual 7% transfer tax.
Sounds great in principle – but owning a company means you have to submit audited accounts every year and the Spanish tax authorities are now trying to discourage this practice and charging an annual tax of (I believe but needs to be checked out) 3% of the properties value – to discourage it.
It isn’t worth it unless you are actually buying the house from the company.
As MG says though – get yourself a good independent solicitor. If you don’t have one I know of an excellent one in Valencia (and an office in Javea) who will look after you
Regards
Vince
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