IBI TAX 2009 IN ESTEPONA

Hello, Fellow Finca Parc Buyers,

I have purchased on Finca Parc and was advised by my Agent as how to combat Spanish Inheritance Tax. They informed me that if I buy the property in a UK Limited Company and not my own name, I could leave the shares of the Company, which I own instead of the property to my Heirs & Beneficiaries.

I followed their advice and have now also produced a UK will, which instructs to leave my shares of the Company to members of my family. This means that when I pass away NO Spanish Inheritance tax will have to be paid by them, as they will inherit a UK Limited Company that owns the property, and not the property its self. Therefore Spanish Inheritance Tax is irrelevant and completely removed, (FANTASTIC)

Also if I wish to sell the property, I will not have to pay any 3% Witholding Tax which none Spanish Domiciled People have to pay when they sell the property on, Secondly anyone who wishes to purchase the property from me do not have to pay the 7% Transfer Tax. This is because when I sell, I will not be selling a property, but will sell the UK Limited Company which owns the property, so no Taxes are payable to the Spanish Government. (GENIUS)

I have also found out that if your property has not been completed you can still pay 500 euros to Cleyton Ges who will change the ownership of the contract. I think we will all agree that paying 500 euros now instead of all these Spanish Taxes in the future is a Godsend.

My Agent who is also a Corporate Property Ownership Consultant can assist anyone who wishes to purchase in a UK Limited Company appose to their own names.

Hi,

We have been involved in a similar situation of safeguarding tax payments with respect to a property we own in the Canaries. I would advise anyone thinking of doing this to check any company offering this service out very, very carefully. I would also suggest speaking to an independent accountant who is familiar with Spanish tax issues/law. As far as I am aware changes in Spanish Law have affected the "tax shelter" situation of Spanish SL companies housed in a UK LLP, eliminating any tax advantage they once had.

We know of people who have tried to sell their SL company which has their Spanish property as an asset . They have had lots of problems since it has resulted in a really complex mire of legal and tax implications.

We are also aware of a similar approach to "safeguarding" future tax payments by putting the property into a structure called a Bi-cell. My advice is DON'T DO IT!