Purchasing in personal or company

Hi Ray,

Are you going to be tax resident in the UK or Spain?  If the latter, I would suggest taking advice in Spain - company law may be different to the UK, but tax and inheritance laws certainly are, so you need to be sure that this is the most efficient (and cost effective) way of doing what you want to achieve.

Kind regards,

Kim

Kim

no resident in UK for the foreseeable !

Hi Ray,

Setting up a shell company to hold and transfer company assets in the UK may be straightforward, but when the assets are overseas (especially in Spain, where bureaucracy is an industry in itself!), it will almost certainly become very complicated.  Should you subsequently decide to move to Spain and become permanently resident here, that could add a further level of complexity.

I think most people who are UK residents simply bequeath their Spanish property to their nearest and dearest in their UK Will, and also have a Spanish Will, written under UK Law, that does the same.  This ensures that UK Inheritance Law applies, rather than Spanish, although it wouldn't necessarily get around any Spanish tax liability that may become due.

I think you need to speak to a specialist about what you're trying to achieve and ensure that whichever solution you settle on for your current circumstances can be adapted, if necessary, for future changes.

Kind regards,

Kim

I'm more hopeful than you, Ray(D) 🤞

You may remember that, in preparation for Brexit, the UK Government converted 20,000 EU laws and Statutory Instruments to the UK's Statute book, to ensure our domestic law continued to function.  The Government's plan is to retain those EU laws that continue to be applicable to the UK post-Brexit and repeal the others.  Whilst I can't find anything that specifically states the example of Wills, there is a reference to UK domestic law that has arisen from EU directives - in the "EU (Withdrawal) Bill Factsheet 2: Converting and Preserving Law", it states that, "The Bill will preserve the laws we have made in the UK to implement our EU obligations (e.g. the laws which implement EU directives)".

Kind regards,

Kim

Could the answer be Kim to purchase jointly with my children, therefore they will still be the legal owners after I have long gone? Is it that difficult to set up a Spanish company for property transactions? I really appreciate all this helpful advice, when it comes to selling property what are the downsides?

Regards Ray

Hi Ray,

No problem buying jointly with your children - friends of mine have done that.  My Spanish tax advisors, Abaco, also suggest there are advantages to donating your property while you're still alive, often referred to as the "Living Will", which could be another option:

https://blog.abacoadvisers.com/spanish-will/

I have to admit that, from your original post, I thought you were suggesting setting up a company in the UK.  I don't know anything about setting up a company in Spain, but this article may help:

https://www.expatica.com/es/working/self-employment/starting-a-business-in-spain-101459/

Kind regards,

Kim

Hi, Some years ago we did just what you are looking to do.   The reason we did this is for Inheritance Tax Purposes and I think this is what you are referring to.    Our house is now owned by a UK company of which we are the sole owners and sole directors.   We used a company that also operates in the UK and Spain and the paperwork is in English and Spanish.   The Company we own is registered in the UK and also in Spain with Spanish paperwork and English paperwork.   Would recommend Wincham to anybody.   We have since sold the original house in Spain and downsized to another house in Spain.   It saved us 6000 Euros in Spanish Tax or something or other, cannot remember what it was for.    The Company was Wincham International.   Details below.   If you want any more information feel free to come back to me.   If you use this company you will have no inheritance problems for yourselves or your children.   Good luck.

Wincham International Limited ©2020

Wincham International Limited are members of the Association of International Property Professionals.

Wincham and its subsidiary companies have (PI) Professional Indemnity Insurance and HMRC Money Laundering Regulation Licence.

Wincham International Limited and its subsidiary companies are also regulated by theData Protection Licence Number: ZA242318UK Office Address: Wincham House | Greenfield Farm Trading Estate | Congleton | Cheshire | CW12 4TR
UK Tel: +44 (0)1260 299 700 | UK Fax: +44 (0)1260 281 260 | Email: [email protected]Alicante Office Address:Av. Ejercitos Espanoles 10 | Edificio Apolo VII, Local 41 | Calpe, 03710 | Alicante | Costa Blanca | Spain
Postal Address: Avenida Ejercitos Españoles, 10 Bajo | Apartado De Correos Nº 79 | Calpe, 03710 | Alicante
Spain Tel: 0034 965 830 991 | Spain Fax: 0034 965 838 329 | Email: [email protected]Marbella Office Address :Avda Ricardo Soriano 72 - Portal B - Planta 1a | Marbella, 29601 | Costa del Sol | Spain
Spain Tel: 0034 965 830 991 | Spain Fax: 0034 965 838 329 | Email: [email protected]

Thats great thank you Andrea will give them a call and discuss .

Hi, Phone the office in England as their English language is better!    The other office in Calpe do speak English however.   You can also go on their web site and have a look at who they are.   I did a lot of research about this sort of thing before I decided to use this company.   I also spoke to some of their customers.   As I said, I am very happy with them but you have to make your own mind up for yourself.   One thing is certain, you will have no inheritance tax problems in Spain if you take this road for the house as the house in Spain will then come under UK Inheritance Tax as it is owned by an UK registered company.   And by the way I do not work for this company, I am an ordinary UK citizen living in Spain.   Good luck,