Transfering property ownership into a UK company
By forming a UK Company: The owner of the property forms a UK Limited Liability company, in which ownership of the property passes into the hands of the company. In this way when he or she passes away, the company will be reorganised, that means it will only be necessary to transfer some company shares, which falls outside Spanish inheritance tax. Is this true
Transfering property ownership into a UK company
Hello Robert,
I have just made a Post to this Forum in the Tax section which may be of interest to you headed "How To Safeguard Against Spanish Inheritance Tax"
My Corporate Property Ownership Consultant who is located in the UK & Spain helped me purchase my property in Spain using a UK Limited Company, so I can pass on their details to you if you wish. I also know they give correct advice and the method for this procedure even if you already own in your own name.
aflores comment above about the 3% Tax I think you will find out to be inaccurate as that Tax in Spain is only charged to Offshore Companies, like the Isle of Man, and not UK Limited Companies which may only be Taxed in the UK, not Spain, also the Shareholders do not pay any Taxes to the Spanish authorities either.
The British Government allow Shares in a UK Limited Company to be passed on to the Beneficiaries Tax Free as well, and you only require a Will in the UK and not a Will in Spain.
The solution of owning in a UK Limited Company completely removes Taxation in Spain, whereas owning in your own name, a Spanish (SL) Company or an Offshore Company does not.
Please let me know if you would like my Consultants details or any information on this subject as I can discuss it from first hand experience.
Corporate Property Ownership
aflores
You are not correct on this one ,A UK Company under EU Law does not pay any tax in Spain ,You are referring to Non EU Companies . A UK Company is a EU Company and under the EU treaty as Long as the Company has a Minimum of 2 Shareholders and is registered in the UK for tax purposes then No tax, We have over 400 client companies under management and know this is the case. we file non resident company tax returns on the 31 st January every year with zero tax.
As you will be aware of the Spanish law a UK company will not pay the 7% tax if the property is gifted to the Company and once done no 25% tax on its rental income a UK company can also claim tax relief against its future and current earnings including mortgage interest and utility bills. This is not possible privately in Spain .If you are a resident of Spain for Fiscal reasons then you will not pay tax in Spain on your UK shares when sold as a non domiciled person only pays on their Spanish located assets not that of other countries .
WCD seems to know the right strategy
I think most people would be confused with what you say as not many will live in the Caymen Islands or other non EU locations