Buying a property in Spain - a person or company?

Question

Buying a property in Spain - a person or company?

Victor Perov asks:

Good afternoon! I am considering buying an apartment in Spain (not a day of residence permit). I see two options - on myself, as a person (citizen of Belarus) or his Lithuanian Jurassic. face where I am 100% owner. Tell me which option will be more beneficial in terms of taxes (VAT, avoidance of taxation at home, etc.), as well as security (transfer by inheritance, etc.). Thank you in advance!

12.02.2018

SPAIN. Consultation

Taxes, fees

Expert answers (4)

Elena Kofeynikova (SpainLuxInvest) · Answer 1 · 2018-06-07T18:31

In order to answer your question, you need to know all the tax laws of Belarus and Lithuania, and then you can give a full consultation, so these answers can give very serious professionals and your question requires a serious approach, taking into account the set of nuances of your situation, so no one will give a professional and specific online response, and if someone responds, it will be "shapochno", so I recommend that you contact the tax auditor and detail all the details. If you want a superficial conclusion, 1) when buying taxation is not different and 2) for the content of objects more concessional taxation for EU citizens, there may also be benefits when selling under certain conditions.

Igor Polyakov (Vivalt) · Answer 2 · 2018-04-08T23:12

Victor, good evening, from the point of view of taxation, there is no difference between buying for a legal entity. a person registered outside Spain or in person. face. If you had a registered jur. a person in Spain, then it would be possible to optimize the payment of taxes.
Yours faithfully,
Igor Polyakov

Marina (Dom&More) · Answer 3 · 2018-04-02T00:32

Victor, good afternoon. An individual has priority in taxation in Spain. Because You are a citizen of Belarus (we are actively working with Belarusian citizens), which means that you are a tax resident of this country, then after buying a property as a fiz. a person must pay the Spanish tax annual municipal property tax (IBI - Impuesto sobre Bienes Inmuebles) Pays the owner of the property as of January 1 of the reporting year (according to the Register of Property). The average tax rate is 0.4% -1.10% of the total cadastral value of the urban property, and 0.3% -0.9% of the total cadastral value of the agricultural property. Next: personal income tax (IRPF - impuesto sobre la Renta de las Personas Fsicas) Real estate sellers pay personal income tax when submitting a declaration for the year during which the sale took place. The calculation of the tax is made on the basis of the amount that makes up the difference between the purchase price and the sale price, using certain coefficients. And the last: the tax on incomes of non-residents (IRNR - Impuesto sobre la Renta de No Residentes). Non-residents pay tax on income of non-residents. They are credited with an income equal to 2% of the cadastral value of the property. The tax rate for this income is 24.75%. If you are a legal entity, you also pay an additional income tax (Impuesto de Sociedades). If the turnover does not exceed 10.000.000,00 €, the rates apply: 25% for the first 300.000.00 € of profit and 30% for the remaining amount. However, for 2015 the total tax rate was increased to 28%. Contact me, and I'll tell you in detail the issue of taxation in Belarus and the safety of property when buying real estate in Spain.

Administrator (Estate Barcelona) · Answer 4 · 2018-02-14T14:09

Victor, hello! The issue of tax optimization is very extensive and needs to be approached individually. Everything will depend not only on the province, value, but also on the type of facility. In addition, you need to consider the subtleties of the tax system in your country. These issues in Spain are engaged in the Hestor. When working with us, we will arrange for you a consultation with Hestor and our lawyer who will be able to answer you with these questions.