The SolutionThe Wincham Spanish Inheritance Tax (IHT) Protection Strategy Our solution simplifies matters by assisting Clients to invest or purchase their Spanish property into a UK Limited Company (Wincham can provide this), of which the clients are both Directors and Shareholders, ensuring they remain in control of the asset whilst eradicating Spanish IHT. Contrary to popular belief there is no 7-10% Property Transfer Tax payable on the Investment Transaction. Our method enables clients to utilise Spanish legislation to conveniently own and maintain their holiday / retirement home within a corporate structure in the most Tax efficient way. Some Spanish paralegals recommend the use of an Off-Shore Company to own a Spanish property, this type of Company is subject to an additional 3% Tax burden each year unlike a UK Company which is not classed as Off-Shore and therefore does not have this additional 3% Tax to pay.
All Spanish property owners regardless of nationality and value of the asset should seriously consider restructuring their asset to protect it in the future.