Can a uk limited company buy a property in spain?

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Yes, a UK limited company can buy a property in Spain as long as it meets the legal requirements and procedures for foreign companies purchasing and owning property in Spain.

Let us now look more closely at the question

According to Spanish law, foreign companies are allowed to buy property in Spain, including UK limited companies. However, there are some legal requirements and procedures that need to be followed in order for the transaction to be completed smoothly.

Firstly, a UK limited company must have a Spanish Tax Identification Number (NIF) before buying a property in Spain. This NIF can be obtained through the Spanish Tax Agency or by appointing a representative to obtain it on behalf of the company.

Secondly, the company must have a Spanish bank account opened in its name and with sufficient funds to pay for the property and related expenses such as taxes and fees.

Thirdly, the company must register for Spanish taxes such as the Non-Resident Income Tax or the Value Added Tax (VAT) if applicable.

Additionally, it is recommended to seek legal advice and hire a professional translator to help navigate the legal and administrative process of buying property in Spain.

As The Overseas Property Show puts it, “Buying property overseas can be a great investment, but it’s important to fully understand the laws and regulations of the country in question before investing.” Therefore, it is crucial to do proper research before making any purchases.

Interesting facts:

Spain has become a popular destination for foreign property buyers due to its warm climate, beautiful beaches, and diverse culture.
As of 2021, the average cost per square meter for a property in Spain is €1,646.
The most popular regions for property purchases in Spain are the Costa del Sol, Costa Blanca, and Balearic Islands.

Table: Steps for a UK limited company to buy a property in Spain

Step	Description
1	Obtain a Spanish Tax Identification Number (NIF)
2	Open a Spanish bank account
3	Register for Spanish taxes
4	Seek legal advice and hire a professional translator
5	Find a suitable property and negotiate the price
6	Sign the purchase agreement and pay the deposit
7	Complete the transaction and register the property with the Land Registry

In the words of Mark Twain, “Buy land, they’re not making it anymore.” And for UK limited companies looking to invest in property abroad, Spain can be a great option as long as they follow the legal requirements and seek professional advice.

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Video response to “Can a UK limited company buy a property in Spain?”

Alex and Miriam discuss the pros and cons of owning a Spanish property in the name of an English company. They recommend against it due to the 24% tax rate on gross rental and the lack of deductions offered to non-European entities. Instead, they suggest owning shares in a Spanish company or using a loan between an English and Spanish company. Creating a Spanish SL company with low social capital can also be cost-effective. They also discuss the costs involved in setting up and maintaining a Spanish property owned by a UK company and taxes associated with renting it out. Regulations require a minimum market price for operations between related parties, and Miriam explains the taxes payable on dividends. They advise being fair and following the rules to minimize tax impact, as Spanish tax authorities can be aggressive. Finally, they discuss options for repatriating money and advise seeking professional advice before purchasing a Spanish property.

Identified other solutions on the web

It’s not illegal to buy a Spanish property through a UK limited company if you have a genuine commercial reason for doing so. Historically, schemes have been set up encouraging UK residents to buy properties in Spain and transfer them to a limited company to avoid Spanish Inheritance tax rules.

León Fernando del Canto replies: There are absolutely no issues with owning a Spanish property with a company registered in the UK. Owning property via a limited company may well be an efficient structure to avoid wealth and inheritance tax in Spain, but the option must be carefully assessed by a tax adviser in the UK and Spain.

Certain Spanish property industry organisations have actively promoted ownership of Spanish property through a UK Limited Company to avoid Spanish inheritance tax, even for relatively low value properties. In recent years, it may have made sense to own Spanish property through a UK Limited Company for higher value property.

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: you should buy the Spanish property in the name of the English company or

The good news is that even now the UK has officially left the EU, British expats still have the right to buy property in Spain.⁴ The costs and the process should be broadly the same as before, and UK citizens may also want to take advantage of Spain’s Golden Visa program.

I am sure you will be interested in this

Can I buy a property in Spain through a limited company?

When you buy a buy-to-let property through a company, Spanish fiscal law considers that all rental income is profit for the company. If you wish to benefit from this profit, you must declare it in the form of dividends shared out from the company.

Can a UK company own property abroad?

Therefore, a UK company with overseas property may be subject to tax in the local jurisdiction as well as in the UK, as UK tax rules subject a UK company to UK corporation tax on profits on land and property outside the UK.

Can I run a UK limited company from Spain?

The answer is: Yes, non-resident directors are permitted to work from Spain. Your income would be chargeable under section 27 for duties performed in the UK. You can read more information about this here. Your company would pay your salary into a bank account in Spain and you would liable to file tax returns in the UK.

Can a UK limited company buy property in Italy?

Response will be: The process for the UK company buying the Italian property from the directors of the company is the same as anyone else buying the property from the directors, except that the company must make sure not to overpay for the property and only pay the market value.

Is it illegal to buy a Spanish property through a limited company?

As a response to this: It’s not illegal to buy a Spanish property through a UK limited company if you have a genuine commercial reason for doing so. Historically, schemes have been set up encouraging UK residents to buy properties in Spain and transfer them to a limited company to avoid Spanish Inheritance tax rules.

Can a limited company avoid inheritance tax in Spain?

Owning property via a limited company may well be an efficient structure to avoid wealth and inheritance tax in Spain, but the option must be carefully assessed by a tax adviser in the UK and Spain. British companies may be subject to non-resident taxes in Spain, as well as having an obligation to submit tax declarations in the UK.

Are British companies subject to non-resident tax in Spain?

Answer will be: British companies may be subject to non-resident taxes in Spain, as well as having an obligation to submit tax declarations in the UK. All the relevant tax implications of owning property through a company structure are explained under the Double Taxation Treaty signed between the UK and Spain.

What is the ownership tax in Spain?

Answer will be: The Spanish authorities are not very happy about that either and charge an annual ownership tax of 3% of the property value! This article is general in nature, intended to give you some insights into the implications of purchasing a property in Spain through a UK limited company.

Can I own a Spanish property with a limited company?

León Fernando del Canto replies: There are absolutely no issues with owning a Spanish property with a company registered in the UK. Owning property via a limited company may well be an efficient structure to avoid wealth and inheritance tax in Spain, but the option must be carefully assessed by a tax adviser in the UK and Spain.

Can a limited company avoid inheritance tax in Spain?

As a response to this: Owning property via a limited company may well be an efficient structure to avoid wealth and inheritance tax in Spain, but the option must be carefully assessed by a tax adviser in the UK and Spain. British companies may be subject to non-resident taxes in Spain, as well as having an obligation to submit tax declarations in the UK.

What if a company buys real estate in Spain?

The reply will be: Well, they would know quite easily. Since 2010, and in a bid to prevent money laundering, the Spanish tax agency demands the names of all shareholders and other beneficiaries owning or controlling at least 25% of a company (Spanish or foreign) when that company purchases real estate in Spain.

Do UK companies need a Spanish tax number?

The UK company must have a Spanish Tax Number and must file annual and/or quarterly income tax returns as a non- resident company without Permanent Establishment, if no Permanent Establishment exists. The shareholders, directors and employees or the UK company should also pay rental when staying at the property too.