# Purchasing Spanish Property via a UK Ltd Company



## happy_dude (Nov 16, 2012)

Hi All,

My wife and I have built up some funds in a Ltd Company in the UK. We want to use said funds to purchase a property in Spain. The reason for doing things this way is to avoid taking the cash directly out of the business as this would have a taxation implication in the UK.

I fully understand that there are other implications of doing this from a UK perspective, but for the purpose of this discussion I am interested in hearing from anyone that has either:

a) Investigated doing this in the past and changed their mind
b) Made a purchase via this method

I must make it clear that I am not trying to do this to avoid Spanish Inheritance Tax laws as the area we intend buying in (Moraira / Acoi) doesn't have draconian laws about passing onto a spouse. I have seen some posts from a company called Wincham and I'm not interested in following this method.

Thx in advance.


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## snikpoh (Nov 19, 2007)

happy_dude said:


> Hi All,
> 
> My wife and I have built up some funds in a Ltd Company in the UK. We want to use said funds to purchase a property in Spain. The reason for doing things this way is to avoid taking the cash directly out of the business as this would have a taxation implication in the UK.
> 
> ...



I looked into this some time ago as I was in the same position as yourself. We rejected the idea on the grounds that it would, ultimately, cost us far more.

You have to do regular tax returns and company house filings - costs money. You have to continue to employ an accountant (in all probability) - costs money. When one of the directors dies, the company directors have to reflect the changes - costs money. When the house is sold or passed on to non-directors - this costs money.


Once we'd looked into it and asked the advice of an independent accountant (not one trying to sell such a scheme) we realized that there was no benefit in going down this route.


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## happy_dude (Nov 16, 2012)

snikpoh said:


> I looked into this some time ago as I was in the same position as yourself. We rejected the idea on the grounds that it would, ultimately, cost us far more.
> 
> You have to do regular tax returns and company house filings - costs money. You have to continue to employ an accountant (in all probability) - costs money. When one of the directors dies, the company directors have to reflect the changes - costs money. When the house is sold or passed on to non-directors - this costs money.
> 
> ...


Thanks for the reply but my situation is slightly different. I already have to pay all of those costs as the Ltd Company the funds are coming from is a going concern.


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