Could I deduct the VAT if I purchase a new housing through a Spanish company?
Not in principle. But we would have to study your case and the objective of the purchase to confirm it.
If I am a administration of a British Company which have a property in Spain, do I need to pay any taxes?
In general, non-resident companies who purchase properties in Spain, through any legal means, are subject to a special levy on the Non resident tax, form 213. This form should be submitted during the month of January following the date the tax becomes due, which is 31st of December of each year.
The companies whose country has signed an agreement to avoid double taxation with Spain are considered taxables but exempts from the tax. In order to apply the exemption, these companies must submit in the Tax Office where the asset is placed, along with the form, tax residence certificate of the foreign company and its partners. Therefore in your case you don´t have to pay the taxes but you would be obliges to declare them.
My company will buy 15 apartaments in La Manga Club, which company do you recommend me? What’re the advantages?
The best option is establish a Listed Investment Companies in the Property Market (SOCIMI). To that end, the Companies have to meet specific requirements (Art. 53 Corporate Income Tax Law):
– Offer eight o more houses for leasing, during a whole tax year.
– Any house to be considered under this regime must be offered for leasing continuously during three tax years.
– A separate account for every business and an adequate distribution of overhead expenses.
– The company may carry out other businesses, but 55% or more of the total income must be derived from leasing activities.
The main benefit of the regime is an 85% discount on the general Corporate Income tax rate, on the income arising from above activities. This means an effective rate of 4.5%..
When I went to buy a property, the seller told me that he sold to me a shares from a company locates in Gibraltar? What are the advantages and disadvantages? Should I purchase?
The advantages are that:
1- The purchase of shares primarily means not paying any transfer tax.
2- The shares are freely transferable between the living and upon death according with the applicable legislation.
3- The companies pay dividends each year if they obtain benefits and it is decided by Ordinary Shareholders. There is no liability to tax on dividends paid by a Gibraltar company to a person who is not resident in Gibraltar. There is also no withholding tax on dividends paid.
4- In Gibraltar there are fiscal advantages. It is possible obtain a reduce tax rate. Companies are subject to taxation on income accrued in or derived from Gibraltar on the taxable profits for the financial year.
Regarding the purchase of the property through shares, this depends on your interests and your needs. The disadvantages is the cost of owning a Company in Gibraltar, the payment of the Special Tax on the Property for being owned by a Company of a Country without Double Taxation Agreement, etc. Normally this sort of international tax planning only have sense when you are talking about important investments.
Which are the advantages of purchasing a property in Spain through a Spanish company?
Purchasing a property with an Spanish Company is a very good option if you are purchasing it as an investment to rent it. The Spanish Company will not be obliged to pay the Non Resident Tax, besides if you rent the property you can deduct all the expenses such us interest of the mortgage, furniture, maintenance cost, etc. so the taxation would be lower than if you hold it as a non resident person. Besides can have important advantages on the Inheritance Tax subject to conditions.