To mitigate their tax liabilities, some people buy their Spanish Property through a company. Whilst this can be effective it obviously has tax and legal implications that need to be considered. The most suitable solution will depend on the particular circumstances but some considerations include:

• International property structures are not cheap to set up and maintain, so the potential savings in terms of tax must be substantial if they are to be financially viable. If a property is worth £1m or more then this may be a good route to consider.

• You must be able to demonstrate a controlling stake in the company e.g. direct or indirect control over the voting rights and the power to name/remove the majority of board members.

• If a foreign property has been owned through a limited company or other corporate structure, which has conducted basic tax-planning for a number of years.

• If the company’s tax obligations have not been complied with, might the structure fall within the definition of aggressive tax planning?

If you are considering purchasing a Spanish property through a company it is essential that tax and legal professionals should review the structures used to buy property to ensure compliance

Unfortunately, many Spanish property owners who created corporate structures to purchase their property years previously and have given them little consideration since. The Spanish tax authorities are aware of this and if a company was created before 2018 and the tax position has not been assessed recently, they may investigate.