Is it OK for UK Ltd company to own Spanish property

This topic contains 4 replies, has 3 voices, and was last updated by  Mark Roach – Spanish Tax Consultant & UK Limited Company Director 6 days, 19 hours ago.

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  • #216852

    BernieA
    Participant

    I am a shareholder in a UK registered company (Ltd) that was set up to 25 years ago to buy and run an apartment in Spain for the benefit of its 12 shareholders. We do not rent it out and it does not make profits. Everything has been OK with this arrangement until the last few years but now I believe we need to be Spanish registered too. Is this correct and if so, how do we about this?

  • #216914

    Dear Bernie,

    Thank you for your Post about a UK Limited Company to own Spanish property.

    I am the Managing Director of a UK & Spain Legal, Taxation & Accounting practice specialising in helping all Nationality clients purchase and own Spanish property all over Spain within UK Limited Company structures since 1994.

    I am experienced to comment as I oversee my organisation that manage over 500 client UK Limited Companies that own about 600 Spanish properties between them.

    A UK Company that owns Spanish property has Shareholders and Directors who own a manage the Company and the Spanish assets it owns.

    The UK Company has a UK registered office, Company Secretary and UK accountant to produce the UK annual accounts.

    The UK Company has a CIF number from the Spanish Tax office so it can own Spanish property and operate in Spain.

    To apply to the Spanish Tax office for a CIF number the UK Company must have a Spanish Fiscal Representative which is an approved Spanish Lawyer or Spanish Accountant that deals with the Spanish Tax office on behalf of the UK Company.

    In the majority of cases there is no Tax paid by the UK Company to the Spain Tax office if the Tax status of the UK Company is set-up correctly and deals with the Spain Tax office submissions with accurate legislation.

    Spain has three classes of Company it operates in Spain.

    1: Spanish Tax Resident Companies like a Spanish SL Company.

    2: Offshore Companies like Gibraltar, Isle of Man, Monaco and BVI Companies that Spain Taxes each year 3% on the value of Spanish property it owns.

    3: A UK Limited Company is classed as a non Resident Company of Spain and does not pay annual 3% or Wealth Taxes in Spain on Spanish property the UK Company own.

    I hope the above information is useful and please let me know of anything further I can help with ?

  • #217066

    BernieA
    Participant

    Thank you very much for your comprehensive reply. Although we did go through a lawyer in Spain when we initially purchased the property, we have not had any dealings since. The person who dealt with the purchase from our side is no longer involved and we cannot find any info in our files regarding a CIF.
    I guess the easiest thing to do is to start from scratch and apply for a CIF via a lawyer. Can you recommend any in Arroyo De La Miel or Benalmadena?
    Is it likely to cause us problems having not been registered previously?

    Kind Regards

    Bernie Allan

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