Owning your own company or business is what many people aspire to. The additional responsibilities and bureaucratic requirements are balanced by the freedom and self-governance that being your own boss can bring.
There are some other potential benefits too that you might not even have been aware of. You might have already considered Spanish property purchase, perhaps as an investment, for shared use by your clients or workforce or even for your own, personal use. If you have, then you could consider purchasing it in the name of your company rather than your own name.
Why? There are advantages. If you buy a Spanish property in the name of your company then you are exempt from paying wealth and income tax each year as long as you can provide a fiscal residency certificate from your own country. Of course, if you are not able to produce this certificate then you will be taxed in the same way as if the property was in your personal name.
If you do already have a company running then buying a Spanish property in its name can help with Spanish inheritance tax too. If you buy a property in your own name, when you die then your heirs might be liable to inheritance tax. If you and your inheritors are non-residents the tax can be steep. If the property is in the name of your company then the company retains the property and there is no need for inheritance tax to be paid or the Title Deed to be transferred here in Spain. There will, however, need to be transfer of the shares where the company is registered.
What must I do?
If you do decide to take this route when buying a Spanish property then it needs careful planning and preparation. In order to sign the purchase deed the public notary will need documents and information about the company including:
- The company’s function
- When the company was founded
- Evidence that it is correctly registered
Most of this information can be found in the corporation certificate issued by the mercantile registry. You will, however, be required to have documents verified for use in Spain. They will need to be stamped with the Stamp of Apostille and must be translated into Spanish by an official translator.
You will also have to prove that you are able to make the purchase on the company’s behalf. Finally, you need to obtain a C.I.F. which is a tax identification number similar to the NIE but for individuals.