Inheritance Tax

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17 Dec 2009 00:00 by auntielinda Star rating in San Miguel de Salina.... 646 posts Send private message

 This may help those of you who want info I am no expert  but my sister has just done this in October as she has had a property in Costa Blanca North of Spain for 13 years and it is now part of a Ltd Co registered in the UK  it was done with a firm in Calpe and cost her 5000 € to set up, she did it when she realised that her survivors would have massive tax bills. They have to pay 300€ pa admin fee to a company secretary and has just redone her will in the UK to take this into consideration


Great Auntie Linda


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18 Dec 2009 00:28 by Poppyseed Star rating. 898 posts Send private message

5000 euros to set up???????? What on earth did this company in Calpe do for that fee? It is very easy to register a UK company using one of the many companies in the UK that provide this service for a couple of hundred quid, that will include Articles of Association and registration with Companies House. (You could do it yourself ) 5000 euros............................................jeez. Why are they paying a company secretary? It is not essential to have one, unless this person submits the annual accounts to Companies House on their behalf instead of using an accountant. or doing it themselves.



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18 Dec 2009 08:13 by auntielinda Star rating in San Miguel de Salina.... 646 posts Send private message

I am only tryng to help but you have obviously more info than I

 So why not do what the forum is for and lets all have the info you know, dont keep it to yoursel. As for me I am merely telling people it can be done, what they pay is up to them and as for paying a company secretary it is non of my business why they have chosen to do this she looks on this site often so may answer that herself


Great Auntie Linda


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18 Dec 2009 10:06 by Poppyseed Star rating. 898 posts Send private message

I have shared the information I know and not keeping anything to myself, my question was what did the Calpe company do for such a large fee. Perhaps your friend will see this and enlighten us all as there may be expensive charges in Spain for this sort of arrangement. that it would be helpful if anyone thinking of doing this knew about but which were not explained in your post.

As for the company secretary I was sharing the information I have that may have saved your friend some money.




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18 Dec 2009 11:45 by nicolaraho Star rating in Surrey and Mar Menor.... 90 posts Send private message

I started a similar thread albeit under a different heading about this same topic  asking who had done this before. Since my original thread I have done further research and my spanish tax lawyers have highlighted some useful information to me.

The transfering of spanish property to a UK company  will have taxes and expenses related to it and the inheritance tax is very difficult to foresee. If one was to die today, with a mortgage on the property probably the heirs wouldn´t pay anything, and in the future is very difficult to make an estimation.If one came to spain to live, the property becomes your habitual dwelling its value for inheritance tax will be reduced.

The transfering of a property into a  UK company will be taxed with 1% over the value and it is true you won´t be charged with the every year non-resident tax. On a 300k euro property this tax won´t go probably further than 300 € per year, and 1% of the property could be around 3.000 € so after 10 years you would stop paying taxes. 

The IBI tax you would pay it either way, under a personal name or a UK company.
Overall as everyone's personal financial circumstances are different it is prudent to get bespoke advise relevant to you.


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18 Dec 2009 16:56 by auntielinda Star rating in San Miguel de Salina.... 646 posts Send private message

Poppyseed it is my sister and she researched the implications long and hard before her and her hubby committed I will ask her to post her findings if t she will she isnt much of a forum rader or poster but if it  would help anyone prices here are not cheap for legal work surprise surprise same as UK.

As for inhertance tax for residents you have to have residencia and I am told that dramatically reduces your committment to around 1% nyone know different ?


Great Auntie Linda


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