25 Jan 2009 11:41 AM:

Hi Janejohn

 

I do agree with you that once you have bought a property in spain, you very quickly learn that life is far more complicated than you could have imagined and you have to do your own due diligence at every turn and advice is always conflicting.

 

I have investigated, at length, the possibilities of putting your property into a company as the previous poster suggests - and my conclusion (and this is only MY opinion and I still continue to explore many options and I still maintain an open mind regarding the subject), but based on my research so far

 

it would seem that, to transfer a property into a company, there needs to be an actual trade - ie. it needs to be a property management company with ongoing property management performed by yourself.  Putting one property into a company which you let out, and pay someone else to manage it for you, doesn't SEEM to qualify you to label your company as a property management company - it is more a property investment, which doesn't SEEM to qualify.  Thus, the tax authorities wouldn't allow the tax allowances.

 

With regards to inheritance tax, yes, if you should pass on to the next world, the spanish authorities are not kind and they will take a large chunk of your property - but only of the EQUITY - so if you are heavily mortgaged, then there isn't any equity, so 15% of zero is not very much! - you will still be liable to their fixed charge which is about 5000 euros, but you could presumably take out insurance cover to cover this bill, if it should be needed, or put money aside somewhere to cover it if required, then spend it if you don't need it!

 

As I have said, this is only my opinion, if you go to my website, i have a blog where i talk about these issues and you can purchase books on the subject which may help you to research the idea yourself and form your own opinion - sorry if this seems like a plug but it is intended to be genuinely helpful - you can pm me and i would be happy to discuss my findings with you - as i say, i continue to research the subject and i have a phone call booked on monday with a spanish business lawyer whom i will be discussing the options even further - if i learn anything different, i will post it here

 

http://www.playaresortsvideo.co.uk/nikki/#home

 

all best wishes

 

Nikki Seal

Playa Golf Resorts

Thread: Spanish Income Tax on rental income for non residents

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14 Jan 2009 3:03 PM:

Hi Fluf

 

Glad to cheer you up! - thank you.

 

There is a link which you can go to where you can subscribe to all the newsflashes which come down from the EU with regard to their actions on policies

http://ec.europa.eu/taxation_customs/common/newsflash/index_en.htm

it might be worth subscribing, to keep abreast of developments.

I also have a copy of their press release regarding their action, if you're interested

Let's hope they win through beore we have to file our next tax return!

All best wishes

 

Nikki

www.playagolfresorts.co.uk

Thread: Spanish Income Tax on rental income for non residents

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13 Jan 2009 6:32 PM:

Hi Fluf

I totally agree with all your comments.  It doesn't seem an equitable way of treating non resident landlords and we, like you, need to do it correctly as we rent out properties on behalf of other landlords.  I have actually written to the EU on this subject and received a reply from their TAXUD department.

They are instigating an infringement procedure against the Spanish authorites, as they are contravening EU law by distinguishing between resident and non resident landlords.    I am afraid we must await the outcome, and in the meantime pay our taxes.

 

Keep your eye on the EC website for developments, I guess. 

 

Best wishes

 

Nikki Seal

Playa Golf Resorts

Thread: Spanish Income Tax on rental income for non residents

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16 Sep 2008 7:44 AM:

Yes, we start interviews for the position on 30th september - anyone interested should email me at nikseal@live.com please

Many thanks

Nikki

Thread: Can anyone suggest any English owned companies in the Murcia region?

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02 Sep 2008 6:34 PM:

No Problems - thank you for responding and best of luck with your plans

When you do move, I think these forums are a great way to keep in touch and find out what's happening on the ground out in Spain (sure you've already worked that one out for yourself!)

Best wishes

Nikki

Thread: Can anyone suggest any English owned companies in the Murcia region?

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