Reply To: Costs incurred if undertake straight swap from one apartment to another

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#218666

Dear Jack,

To help a Buyer & Seller of a Spanish property save the 10% Spain property Purchase Tax on a swap or part exchange then this can be done in a Corporate structure.

If the sellers of each property invested their Spanish property into a separate UK Limited Company there is no 10% Spain property Purchase Tax.

Each owner can then sell their own UK Company with the property held within it so the buyer for each side does not pay 10% Spain property Purchase Tax, when buying the UK Company with property already held within it.

Also if both properties were sold in a normal way and they were bought under the Reviewed value then each buyer would have a 4 year time scale when Spain Tax office can ask for extra Purchase Tax.

Not only does the Corporate sale method save the 10% Spain Property Purchase Tax but it also avoids the 4 year Spain Tax Office investigation to the buyer in the normal way.

In addition to this the new owner of the UK Company can then resell the Company and supply any future buyers with the same benefits and Tax savings.

I hope this helps?