Our purpose for Spanish Clients and Clients that own Property in Spain is Asset Protection, to create and provide them with structures that allow them to hold their Spanish assets in a UK company with full Spanish tax authority compliance and then have the shares to the UK company held in Trust. This can apply to a number of assets including property.
1: The Spanish Government does not recognise Trusts for owning Spanish property as we know.
2: To own Spanish property you require a NIE number for an individual, or CIF number for a Company which is also common knowledge. 3: However, a UK registered company can obtain Spanish Tax authority approval and own Spanish property due to a treaty that predates the European Union. 4: Owning Spanish property in a UK Company means there is no annual 3% Tax so it is immediately very cost effective. The UK also recognises Trust Law as per Hague Trusts convention.5: These structures are open to Spanish Nationals and Spanish Residents alike.
6: A UK Ltd company that owns a Spanish property will normally submit annual Zero Tax Returns to Spanish Tax office. 7: When we place a Spanish property into a UK Company there is no Transfer Tax (normally between 6-12% depending on location) as the property is placed into the UK Company in exchange for shares, so no sale or transfer takes places. 8: There is also zero Spanish Capital Gains Tax as the property is placed into the UK Company based on the original property deed value so no increase in value. 9: The Spanish property rental income may need to be declared in Spain, but in most cases it can just be declared back in the UK if the Company is set-up correctly from the beginning with the correct Companies Act documents and Certificate of Residence. 10: Any Company that operates in Spain requires a Fiscal Representative as per the requirements of the Spanish Tax Office (Hacienda) that we can provide if needed. Once the Spanish property is owned by a UK Company there is no further requirement for the Resident owners to include the property in their Resident Tax Returns in Spain each year as they do not own the property directly but they own the UK Company that owns the Spanish property. 11. With the property/assets placed in a tax efficient Trust we leave decisions on inheritance and legacy up to you. You’re family and loved ones can gain the maximum benefit of your strategy. We can structure the capital/investment part of your wealth to remain neutral while the increase/growth is made in the private trusts we create. This is perfectly legal from a tax point of view. We will plan your estate down to the last detail making sure that your estate avoids probate and is there for generations to come.This is the way to protect you and your family.