EXPLAINED: Should an English Company Buy a Spanish Property?

30 January 2023 | Tags: , , , ,

My Lawyer in Spain talk to Miriem Diouri Garcia of MDG Advisors about the differences in owning a Spanish Property though a Spanish Company or through an English company.

I have an English limited company with money in it. Can the company buy a Spanish property? I would like to rent the property for holiday lets and also use it. I am looking at the Canaries and mainland Spain.

The simple answer to this question is “yes, an English company can buy a Spanish property“.

The more complicated question which we will consider is whether…

  1. You should buy the Spanish property in the name of the English company, or;
  2. Incorporate a Spanish limited company and the English limited company becomes a shareholder in the local Spanish company, or;
  3. Incorporate a Spanish company and the English company loans monies to the Spanish company to buy a property.

Here to help us with this analysis is Miriem Diouri Garcia, a Spanish accountant and owner of MDG Advisers which is a Business to Business firm of accountants.

We look at:-

  • Can the English company buy a Spanish property?
  • What are the advantages and disadvantages?
  • What is the most tax efficient structure?
  • How would a loan agreement work between the parties?
  • What company taxes would to be paid annually on the rental income?
  • What costs would I pay to an accountant in Spain to look after my company?
  • If I rent the property, what taxes do I pay?
  • What costs are deductible?
  • What happens to refurbishment costs and what can be deducted?
  • Can I use the property myself?
  • Can I claim for my management time?
  • What tax do I pay on dividends to me or to the English company?
  • What tax do I pay if I wish to reinvest the Euro rental income generated by the company?
  • Can I pay myself a salary?
  • When selling the property what happens with the gain I make and what tax is payable?

You can contact Alex at My Lawyer in Spain via email at enquiries@mylawyerinspain.com to discuss purchasing or selling property in Spain.

Tel: (UK) 0845 5082395
Tel: Spain (+34) 951 203 094
Our Costa Blanca Office: Costa Blanca: (+34) 966 943 219

For a free consultation, you can contact our Spanish lawyers.

Contact Miriem Diouri Garcia of MDG Advisors through her website https://mdgadvisors.es/.

My Lawyer in Spain

Written by:
My Lawyer in Spain

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