14 Jan 2012 9:54 PM:

It is now possible for the President or managing agent of a community to recover debt from any debtor in Spain in any EU country that  the debtor is resident.

In fact our company Wincham Legal Ltd is acting for many communities in Spain recovering debt in the UK. We can issue proceedings against UK residents, obtain judgement and recover using Baliffs,Sherrifs or obtain attachment of earnings orders and even charging orders on UK assets.

It should be remembered that even if the owner has surrendered their property to the bank we can still recover outstanding debts in the UK courts.

If you are a President of a community and would like to talk about our low cost debt service, then send me a private mail.

Thread: Community charges - who pays the short fall

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26 Mar 2009 3:55 PM:

Neil

In reply to your post I make the following observations . We are Spanish Tax Advisor's with offices in Spain and the UK.

1) Only offshore companies such as IOM, Gibraltar ,Jersey  pay 3% tax on the value of their assets and this type of company is no longer suitable for property ownership,But a UK Company is not an offshore company to Spain and therefore under EU law does not pay tax in Spain.

2) Benefit in kind tax for directors of UK Companies owning Foreign property was abolished in April 2008

3) Capital gains tax is 18% in both Spain and the UK on the sale of property or Shares so no difference  to a non domiciled Spain owner. But the company can claim tax relief on its attributable expenses including travel of the directors and mortgage interest also all property expenses ,this will reduce the tax payable on the sale of the company or property. With regards to the disposal of the property your option is to sell the property from the company exactly the same as selling from yourself  or to sell the Shares this method saves the 7% for the buyer and and the 3% retention for the seller.you can use a UK professional to deal with the Sale and Purchase and obtain suitable warranties in respect of the property and company .this is much better protection than you would normally get from a Spanish transaction.

4) I agree that some benefits may not be open to a corporate owner such as no CGT for over 65 but in our experience IHT is far more important to client than CGT as most end up resident back in the UK sooner or later. and need to take advantage of the UK NHS ,they then leave their property to their UK inheritors with massive IHT problems in Spain, if the property is in a UK Company then no IHT in Spain and no probate in Spain .

OWNING THE PROPERTY IN A UK LTD COMPANY MEANS NO TAXES IN SPAIN DURING OR AFTER YOUR LIFE .

You can leave your property in your UK Will to a UK company and no IHT in Spain another option.

It is much easier to deal with a UK Company in the UK through your UK Will ,no need for your inheritors to obtain NIE numbers no 7% if 1 inheritor wishes to sell their inherited shares to the other inheritors ,no need for your inheritors to deal with the Spanish legal system .

I would be interested in hearing of how you would reccomend UK Domiciled Clients avoid Spanish IHT and other taxes

 

This message was last edited by malcroach on 3/26/2009.
Thread: How to avoid Spanish Inheritance Tax

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13 May 2008 12:45 AM:

We have no problem getting   Spanish Bank mortgages for property owned by UK Companies ,Soon we will have UK Banks lending as well, Its one of the things we arrange.and as I said its the property that is mortgaged ,whoever owns it ,not the shares,why would you want to finance the shares.

Thread: Buying Tax Free Scam

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12 May 2008 5:28 PM:

Smiley

I don't understand the problem. If you wish to sell the Property from the Company then the purchaser will finance the property in the traditional way

If you wish to sell the Company then the Company could mortgage the property to a lender and the finance raised would be used  to repay the Shareholders Loan and the balance financed by the purchaser. This is no different than buying in your own name except now the company can claim UK tax relief on the interest.

Example 1 Property Cost   300000€   Deposit 35% = 105000€  Mortgage  65% =  195000€

Example 2 Shares 50000€ Shareholders Loan 250000€ valuation 300000€

Bank borrowing @ 65% 195000€   New Shareholder 50000€ for Shares  55000€ New Shareholders Loan.

The above shows that there is no difference. You would not finance the shares but the property

Thread: Buying Tax Free Scam

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12 May 2008 4:23 PM:

Can I recommend that you transfer the shares held by the UK Limited Liability Partnership to yourself or is there a reason you should not ,I would not be happy with another entity not owned or controlled by myself owning the property ,one does not need to be covert to be tax efficient

Thread: Buying Tax Free Scam

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