Re: Re: Advise wanted about group ownership of a Spanish propert

#61672
Anonymous
Participant

One way is to use a UK Company but this is rarely the best option. For example as a non resident a UK Company will be liable for CGT at a rate of 35%.

Better alternatives are

1. Using a UK Company and registering an official branch in Spain as it will then be treated as fiscally resident
2. Using a Spanish S.L. company
3. Using a Spanish S.L. company with the shares owned by a UK company
4. Using a Spanish S.L. company with the shares owned by an Offshore company not blacklisted.

The best option will depend on the circumstances of the beneficial owners but in all cases it is important the SL or Branch “trades” and is not solely used to hold the property.

It is worth noting that since a House of Lords ruling UK taxpayers owning property abroad via a Company run a real risk that HMCR will treat them as receiving a “benefit in kind” and thus tax will be due on the notional rental value even if the property actually lies empty. At 7% a house valued at 300,000 would result in a tax bill for higher-rate taxpayers of 8,400 a year and for lower-rate taxpayers 5,250 a year. YIKES!

Best

Loco

@EmmaF wrote:

Can anyone tell me what are the possible ways for a group of individuals to own a property in Spain? Ideally I would like a UK company to own the property with each individual owning shares in the UK company – is this possible?

Thanks
Emma