property transfer from Spanish SL to uk limited company

I currenly have a uk limited company and wish to purchase a property from a Spanish Sl.

Is this a simple process and does it have any advantage or pitfalls.

Greatfull for any advice.

I certainly can't offer any advice, but can say that in South Africa it is common practice for a property to have its own legal persona, ie you form a small company just to own the house, farm, etc. There are many advantages and I should think some will be the same in the UK. Most important is that when you sell the house you don't transfer the house, just the shares in the company. This means that stamp duty doesn't apply. (Of course, you have to pay the stamp duty when the company buys the house in the first place). But it means that a future buyer doesn't pay duty and this means you can ask a better price and share the savings. Also, there is the speed of the sale as there is no conveyancing, the buyer gives you the cash and you sign over the share certificate and it's done. There are also death duty implications. If you list your kids as the owners of the company it means no death duties if you die as they will have owned it all along. Of course, you get your kids to sign a share transfer certificate which you keep in your safe, just in case they get too clever for their own good and think the place really does belong to them. "Don't you remember son, you gave it back to me the other day?" The downsides are that you have to file an annual return. (But then in South Africa one was able to take a small tax position on maintenance costs, etc which about covered the accountants fees.)

I can't imagine from your point of view there would be any problems, only perhaps in obtaining credit in Spain, but I assume when the SL sells the property they will have to pay capital gains tax.....I think!

Justin

Hi,

The UK company will be paying cash not by mortgage.

The UK company will be buying the shares of the SL company so I am wondering what liabilities will be required payment wise for both companies. I assume as there is no sale of property and no purchase of property that it may well be tax free, but need some proper advice regarding the situation.