Choosing the right ownership structure is crucial for foreign buyers looking to invest in Spanish real estate. The decision to purchase either in their own name or through a company involves various strategic considerations.
The Simplicity of Individual Ownership
Many prefer individual ownership due to its straightforward nature and reduced administrative demands. It allows for easier transactions and more direct control over property management, making it a popular choice for those prioritizing simplicity over complexity.
The Benefits of Company Ownership
Acquiring property through a company, whether Spanish or foreign, can be advantageous for those seeking specific benefits like enhanced privacy and investment flexibility. It is particularly beneficial for buyers involved in estate planning or managing multiple ownerships.
Tax Implications to Consider
The choice of ownership structure significantly impacts the tax liabilities the buyer will face, with notable differences in capital gains, wealth, and inheritance taxes. Buyers must evaluate tax rates and allowances, which can vary due to Spain's regional legislation.
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