Investment Property - Taxation and Inheritance in Spain

Protecting your investments from the Spanish taxman

Owning investment property abroad has a lot of advantages. However, it almost certainly also means that your property will be governed by local laws with respect to taxation, inheritance and other issues – laws that will often be very different from what you are used to back home.

The Spanish legal system, based on what is known as the Napoleonic Code, is completely different from the ones of the UK and Ireland. This often results in unnecessary taxation on your investment property. Luckily, the solution to many a foreign investor’s woes lies within the very same Spanish law – though don’t count on the taxman to tell you about it!

Enjoy the benefits of a Spanish business

Spanish legislation is particularly well tailored to protect family businesses – a unit that has long played a very important part in the country’s economy. This means that by setting up your investment property under the umbrella of a small business, you can benefit from the very same advantages that millions of Spanish families have been enjoying for generations!

Of course, you will not have to worry about the details. At Día Soleado Invest, we can put you in touch with experts who will be able to advise you and implement for you the most advantageous fiscal structure for your investment property portfolio, depending on your specific situation.

The death of inheritance tax

Another issue that, by its very nature, always crops up at the worst of moments is Spanish inheritance tax. Foreigners will find that this also works differently than back home. For example, many do not know that under Spanish law, if the surviving spouse inherits their partner’s share of the investment property, he or she would be liable to pay tax on that! Well, the Spanish family business model is so powerful that your investments can in most cases be set up in such a way as to do away with inheritance tax altogether. How about that for good news?

Whether you already own, or intend to buy, property in Spain, it is vital that you take every step possible to protect the value of your investment. Contact Día Soleado Invest to learn more about these exciting – and unfortunately little-known – possibilities.