Why it doesn’t pay to own property in Spain through a company
By , 27 Jun 17
As tax laws have changed in recent years the disadvantages of owning Spanish property through a company have increased, says Jason Porter, director of European IFA firm Blevins Franks.
There are additional considerations if the company is resident in a tax haven. For example, there is an annual 3% tax based on the property’s value.
This is a brief summary and each case should be examined individually, Porter cautioned.
“Also remember the importance of diversification – being over exposed to any asset is risky. Property is also an illiquid asset, hard to sell suddenly, and you cannot sell just a part of it to release funds.
“Your investment portfolio should have a good balance of property as well as liquid, easily diversified assets like shares and bonds.”
Tags: Spain
