Tax Savings

One of the primary benefits of purchasing property through a company in Spain is the potential for tax savings. This can include the deduction of VAT on new properties, which is significant given that buying a new property in Spain involves paying 10% VAT, whether the buyer is an individual or a company. 

Estate Planning

Estate Planning: Using a corporate structure can facilitate estate planning, particularly in terms of inheritance tax strategies. It can allow for a more straightforward transfer of assets to beneficiaries and potentially minimize inheritance tax liabilities.

Avoidance of Inheritance Tax Issues

The European Court of Justice has recognized the unfairness of Spain’s different rates of inheritance tax for residents and non-residents. Owning property through a company can help mitigate these issues.

Asset Protection

Holding property through a company can provide a layer of protection against personal liabilities. This can be particularly advantageous for investors who wish to safeguard their personal assets.

Regulatory Compliance

Regulatory Compliance: While there are complexities involved in owning property through a company, with professional advice, it can ensure compliance with Spanish laws and regulations, which have evolved to be more stringent in recent years.

Ownership Anonymity

Utilizing a company structure for property ownership in Spain can provide a level of anonymity. While full disclosure is required for legal and tax purposes, the day-to-day privacy of the property owner is maintained, offering discretion for investors who prefer to keep their real estate holdings confidential. This can be particularly appealing for high-profile individuals or investors who prioritize privacy in their investment dealings.