Quote:
Originally Posted by pelinor  Sorry, but I found the advert to frightning! bit of a hard sell.
What happens if you start the company and next year the Spanish Government close, what seems to be a loop hole?
Or maybe I'm not reading it correctly 
But hard sell and scare mongering aside. It is a wake up call thank you Rachael  |
Sorry - didn't think I was 'hard selling', just giving facts!
They sure scared the s*** out of me when I found them out, which was why I have set up a company and transferred my properties to it.
The key to the transfer of property from personal ownership to company ownership without significant transfer tax is a Spanish Law that was brought in to aid the compulsory purchase of property. If that law was changed then the Spanish would have problems as a result.
EU Directive says that you can elect to have a company set up in a Member State taxed in whichever EU jurisdiction you choose because dual taxation treaties apply. The company owns the property because of the transfer and it is out of Spanish tax, period. I think it extremely unlikely that EU Directives regarding company tax in Europe will change - there is too much at stake.
There isn't really a loophole, just clever use of existing laws.