Since Wincham has been writing for the Euro Weekly we have received many enquiries about our company and solution to avoid Spanish Inheritance Tax and I have supplied a number of the most popular questions posed by our clients.
Who has to pay Spanish Inheritance Tax?
Most owners do not understand that their heirs and their estate may pay IHT/ISD in two jurisdictions,
Who may own a UK Limited Company?
The services that we offer are available to both Residents & non Residents of Spain as any nationality may own a UK Company. Whether you currently own a property in
What is the Capital Gains & Transfer Tax when investing a property into a UK Company?
There is no CGT implication in Spain when you invest a property in Spain into a UK Limited company, as the Hacienda has a method of calculating an investment value based on the original purchase price as shown in the public deed, plus the 7% paid at purchase, plus the Notary fees, plus indexation for the years the property has been owned.
This value is the new investment value into the Company with no CGT in
The downside is that in 2007 the rules changed, for each day that the property is owned after 1st January 2007 one day is taken off the Tax free allowance, therefore shortening the Tax free time available for CGT. It is therefore beneficial to utilise this Tax free time now as in the future it will be eroded to zero.
CGT will not be applicable in
When investing a Spanish property into a UK Company there is no 7% Transfer Tax on the transaction either.
Are there any onward costs in running a UK Limited Company?
It is very cost effective to own a UK Company as around £750 a year will cover the maintenance and running costs of the company including the filing of the accounts in the
Can I transfer a property into a UK Company if it has a mortgage?
Once the property is in the ownership of your company then the loan repayments can be made from a company bank account. The bank account will be funded by the owners of the company or from income that is generated from the company or property. The interest and other expenses can then be offset against any income to the company which may not be done if the property is in the owner’s private name.
Does Wincham have the infrastructure in place to deal with this transaction?
Wincham has been established since 1994 and has offices located in the UK and Spain and our organisation consists of Gestores, Economistas, Lawyers, Estate Planners, Will Writers, Tax Consultants, Chartered Accountants, Members of the Institute of Credit Management and a Companies House Formation Agent who are all part of our team and work on the process and supply support to our clients.
You will notice that we are part of the Association of International Property Professionals and therefore must have Professional Indemnity insurance for services both in the
What Professionals do I require in
There is no requirement for Wills in
Can you supply any onward benefits?
Wincham has invested over £100,000 developing a bespoke online Case Management System for the benefit of all registered clients. This ensures all clients can track the progress of a case by logging into their personal, secure section of our website and viewing copies of all personal, company, bank and Legal documentation.
Clients can also keep track of any Taxes or fees due and view copies of receipted documentation once paid. Additionally we are now able to offer a cash book facility which records all expenses in respect of the ownership of the property. By ensuring that this simple facility is kept up to date clients can ensure that the cost of the preparation of the annual accounts for the company is kept to a minimum.
An additional benefit of our system is that, should the company be inherited or sold in the future, there is a full record of all transactions for the company and property which are available to the new owners. Should any client not be able to use the internet then our offices are always open to meet with them in person.
This information has been provided by Mark Roach, Company Director and Spanish Tax Consultant.