Comments on: Spanish Property Income Tax in 2009 http://belegal.com/blog-by-antonio-flores/spanis-property-income-tax-in-2009/ Thoughts about laws and regulations which affect foreigners in Spain Fri, 10 Feb 2012 18:55:55 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Antonio http://belegal.com/blog-by-antonio-flores/spanis-property-income-tax-in-2009/comment-page-1/#comment-1802 Antonio Tue, 07 Jul 2009 16:37:26 +0000 http://belegal.com/blog-by-antonio-flores/?p=204#comment-1802 Shared ownership would be taxed in the same manner as regular ownership (for example, a couple buying a property is a shared ownership scenario). Fractional ownership is not any different from shared ownership according to Spanish law (called "proindiviso") and so only if this ownership is structured through an offshore company, as seems to be the idea many REA have, the tax position will become relevant in the country where this company is based. A different matter is how this company (offshore) is to be taxed as the Special Tax on Foreign Entities envisages a 3% tax on the rateable value, unless all shareholders are residents in a country with an exchange of information agreement with Spain. Shared ownership would be taxed in the same manner as regular ownership (for example, a couple buying a property is a shared ownership scenario). Fractional ownership is not any different from shared ownership according to Spanish law (called “proindiviso”) and so only if this ownership is structured through an offshore company, as seems to be the idea many REA have, the tax position will become relevant in the country where this company is based.

A different matter is how this company (offshore) is to be taxed as the Special Tax on Foreign Entities envisages a 3% tax on the rateable value, unless all shareholders are residents in a country with an exchange of information agreement with Spain.

]]> By: Spainsh property http://belegal.com/blog-by-antonio-flores/spanis-property-income-tax-in-2009/comment-page-1/#comment-1794 Spainsh property Sat, 04 Jul 2009 17:17:24 +0000 http://belegal.com/blog-by-antonio-flores/?p=204#comment-1794 Not totally related but how would fractional or shared ownership affect the tax position as far as Spanish residents are concerned as this may be a way forward for people looking for second holiday homes? Not totally related but how would fractional or shared ownership affect the tax position as far as Spanish residents are concerned as this may be a way forward for people looking for second holiday homes?

]]> By: Antonio http://belegal.com/blog-by-antonio-flores/spanis-property-income-tax-in-2009/comment-page-1/#comment-1760 Antonio Mon, 22 Jun 2009 16:18:17 +0000 http://belegal.com/blog-by-antonio-flores/?p=204#comment-1760 Hello Peter, If 2 of the owners are posted in Dubai but are still being paid in the UK and have not changed their residency the Inland Revenue should not have a problem issuing a certificate of residency in the UK. This will allow you to be exempt from the 3% Special Tax. Hello Peter,

If 2 of the owners are posted in Dubai but are still being paid in the UK and have not changed their residency the Inland Revenue should not have a problem issuing a certificate of residency in the UK.

This will allow you to be exempt from the 3% Special Tax.

]]> By: Peter http://belegal.com/blog-by-antonio-flores/spanis-property-income-tax-in-2009/comment-page-1/#comment-1759 Peter Mon, 22 Jun 2009 12:44:42 +0000 http://belegal.com/blog-by-antonio-flores/?p=204#comment-1759 Antonio; thank you for your summary of the tax situation regarding property. We have a property purchased by a company based in the UK so tax certificates should be easy to provide. Recently two of the four owners were transfered to Dubai for work how would this impact the tax liability. If the income is still received in the UK they would be taxed as if they were in the Uk so my undersatnding is that for the purposes of the Uk company they are still paying UK tax on any income. Do you have a view on this?? Antonio; thank you for your summary of the tax situation regarding property. We have a property purchased by a company based in the UK so tax certificates should be easy to provide. Recently two of the four owners were transfered to Dubai for work how would this impact the tax liability. If the income is still received in the UK they would be taxed as if they were in the Uk so my undersatnding is that for the purposes of the Uk company they are still paying UK tax on any income.

Do you have a view on this??

]]> By: Megan http://belegal.com/blog-by-antonio-flores/spanis-property-income-tax-in-2009/comment-page-1/#comment-1752 Megan Fri, 19 Jun 2009 06:11:53 +0000 http://belegal.com/blog-by-antonio-flores/?p=204#comment-1752 Property taxes in places like Spain are being reduced so to encourage investors to move into the over 1 million empty new houses no one is buying. Property taxes in places like Spain are being reduced so to encourage investors to move into the over 1 million empty new houses no one is buying.

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