June 26, 2008 at 12:37 pm #54113
I bought a villa in Feb 2004 on the Costa Blanca for private use, not as an investment, not for renting – purely private use.
My solicitor suggested that I buy it using a company as a vehicle as this would save inheritance tax in the future. This turned out to be a big mistake as it cost a lot to set up the company, then a further $2,000 annually to administer the accounts for this company.
I have just heard from my solicitor that the tax laws altered in 2007 and it is no longer tax efficient to keep the ownership in this company name.
Does anyone know how much it will cost to change from company ownership to private ownership? Will I have to pay a hefty fee in IVA or Stamp Duty as the government will see this as a new sale even though it is selling it back to the same owner?
Is there another way of approaching this to save a lot of costs?
June 26, 2008 at 4:09 pm #84842
It will be treated as a new sale, if there is a way round it I haven’t heard of it. Have you looked into trust funds?
June 27, 2008 at 8:06 am #84856
June 27, 2008 at 12:29 pm #84863
surprised that none of the lawyers on this site have commented or provided an answer (quite a simple one ) for this transfer of ownership –
Trusts are common for high net worth individuals; €10,000,000 min – banks/ law firms in Gib, Channel islands can advise !
June 27, 2008 at 1:02 pm #84867
I would have thought that the last thing the author of this thread needs is for some gibraltarian lawyer to take him for another expensive ride.
My advice would be to steer clear of Gibraltar!
June 27, 2008 at 5:09 pm #84883
I think Katy means trust & not trust funds. What you have perhaps overlooked is the Capital gains Tax in addition to other taxes & fees.
Sorry, but you are not the owner of the property, the company is the legal owner as the property and has corporate entity of its own. As far I can see Gibraltar or not you will be out of the pan into the fire.
To make things less painful. You will be pleased to know that the UK authorities is no longer taxing people for the use of the property as a benefit in kind.
The forum ‘Property Questions & Answers’ is closed to new topics and replies.