It is possible to purchase a property via a Spanish Limited company, i.e. S.L. If this is something you are thinking of doing, it would be advisable to appoint a local lawyer to help you with the legalities. First thing you must do is obtain your identification number as a non-Spanish citizen, the so called NIE number. Read more about it in our previous blog entry ” Spanish NIE number”. The next step would be to apply for the certification of the company name. You will receive a certificate, certifying that you are the only person to own this particular company name. Once you have this document you need to open a business bank account in Spain, in the name of your new company and deposit the minimum investment amount. The minimum capital required when creating a S.L. is 3000 Euro.
When the above has been done, you need to make an appointment with a notary to set up the company and thereby determine the structure of the business and the status of the owners. The deed of incorporation (“escritura de constitución”) is the document that sets up your company and will include important information regarding your company. The notary sends the deed to the Register of Companies.
As a company is a legal person in its own right you will need a tax identification code (CIF) that is specific to it. The company registration number (CIF) provides a formal registration on the company tax system in Spain and also forms the VAT number. With the tax ID, your Spanish company can do business anywhere in the EU.
If a property is bought via a company structure the tax authority in Spain will however assume it is being run as a business and income is being generated and assumed income liable for tax will be applicable whether an income is generated or not. You will therefore be required to file tax forms every quarter, as well as yearly tax forms. You are also required to present the accounts to the Register of Companies every year.
Mallorcaresidencia can recommend Montis Abogados.