Why don’t investors who sooner or later plan to sell hold titles in a company and sell that company’s shares, in order to avoid the buyer having to pay the ITP? Given the ITP is very material, I don’t understand why don’t investors structure the investment to minimize it. I am sure many do, but I also see many sellers (foreign) hold in personal titles, so making buyers subject to the tax.
This topic was modified 2 years, 11 months ago by entropy.
The Spanish tax authorities are aware of this avoidance. If a property is held by a Spanish company and that company has no other activity, the authorites will charge tax based on a notional rent that the company should have been charging for the property to give a return to shareholders. They can do the same if there is a car in the garage also registered to the company. One way or another, they will ‘get’ you. Check with a responsible lawyer or accountant who will give advice and not just take your money to do what you ask and not answer the questions you don’t know to ask.
Everything you need to know about property in Spain
Login or Register to read articles without any adverts in the text.
This website uses cookies to improve your experience. If you continue to use the website you agree to our use of cookies. You can find out more here. Accept
Cookies
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.