“There are more than 5,000 private Spanish properties valued at over £1m owned by foreign investors, most of which are UK residents. The majority of these are set up as international corporate structures as a way of minimising tax or avoiding Spanish income tax for non-residents, as well as wealth tax and tax relating to transfer of ownership. Hence properties were bought up throughout Ibiza, Marbella, Tenerife and Mallorca.
This route has previously been low maintenance, as foreign investment in Spain was always welcomed, but times are changing. These properties are now firmly under the tax authorities’ spotlight. With public finances stretched, these structures are now being investigated at a higher rate than ever before.”
This is the way León Fernando Del Canto starts his new article published in Accountancy Daily about new Spanish tax rules.