FAQs & Downloads
Real Estate & Golden Visa
Q. If I invest in Spain, do I need to travel to Spain at any particular time?
A. *You will need to be physically present in Spain when opening your bank account. Also, it is advisable that when you are in Spain you sign a power of attorney to give your legal representative faculties to represent you in Spain.*
Q. If I am non-resident, can I obtain a mortgage in Spain?
A. *Yes, as long as the bank understands that you have enough funds to pay for your mortgage on a monthly basis. Usually, banks will finance a maximum of 60% of the investment.*
Q. What will the Spanish bank require from me when opening my account?
A. *They will ask you for your identification, and the Bank will ask you to proof the origin of the funds. Therefore they will want to see your rental income, company accounts if investing via company, etc.*
Q. Is it better if I buy through a company?
A. *If you are determined to do business in Spain, it may be better for you to invest through a company instead of buying as an individual.*
Q. I want to make sure that I buy the property free of liens, debts, charges and want to avoid all the risks. Who can help me?
A. *Your Solicitor will undertake a Due Diligence where the result of the relevant searches shall be shown. If there are any risks, your solicitor will assist you in sorting them out and finding a solution.*
Q. Which family members can join the main investor?
A. *The spouse or unmarried couple, children of minor age, children of legal age economically dependent, and parents of the main investor financially dependent*
Q. If the investment is done by a company, can I still obtain the Visa or residence permit?
A. *Yes, as long as you are the main shareholder and the company is not domiciled in a Tax heaven.*
Q. What are the benefits of obtaining the Golden Visa?
A. *With the Golden Visa you can live in Spain without having to be fiscal resident in Spain, as opposed to other residence permits such as for example the Wealth Visa, which requires that you spend more than 183 days in Spain and therefore become Spanish Tax resident.*
Q. Can we buy commercial premises?
A. *The Law 14/2013 of 27th of September establishes that the interpretation of Real Estate investment can be very wide and therefore includes all sort of Real Estate assets: Parking espaces, commercial premises.*
Q. Can I obtain the Golden Visa even if I finance the investment with a mortgage?
A. *Yes, it is possible to finance your investment and still obtain the Golden Visa, providing that you invest 500.000 Euros minimum from your own funds free of charge.*
Administration of Estates
Q. Do I need to do a Spanish Will if I have a foreign Will?
A. *Foreign citizens with assets in Spain should do a Spanish will if they want to make the probate process quicker. If there is no Spanish will, beneficiaries have to wait until the Grant of Probate is supplied, is translated into Spanish, and apostilled. If you are a foreigner with residence in Spain, having a Spanish will in place is of essence if you want to apply your national Law to your inheritance. According to The European Succession Regulation EU650/2012 (also known as “Brussels IV”) if you have your habitual residence in Spain and you want your national law to be applicable to your Succession you should have a Will where this is expressly mentioned.*
Q. Can I sell the Spanish assets if I am a beneficiary?
A. *Before you can sell them you will have to go throughout the inheritance proceeding in Spain. Then, once you have become the registered owner at the Spanish Land Registry, you can sell them*
Q. What happens if a relative passes away with assets in Spain, and we can not find a Will?
A. *We can check if there is a registered Spanish Will in Spain, as in Spain there is the compulsory Wills Registry in Madrid. If there is no Spanish Will duly registered and no foreign Will, the inheritance will be qualified as Intestate, and the Law applicable will depend on where the deceased had his/her last residence.*
Q. If I am a non-resident and invest in Spain, what happens with my Spanish Inheritance Tax?
A. *If you are a non-resident, since the ruling of the Spanish Supreme Court dated November 2018, there should not be tax discrimination between residents and non-residents, regardless if they are European residents or non-European residents. Therefore, the allowances, the deductions and all the tax benefits shall be applicable equally.*
Corporate Law
Q. I am setting up a new business with two partners, do I need any kind of agreement?
A. *We recommend that you draft a shareholders agreement in order to avoid future problems related to your business. A shareholders Agreement is a legal document that will reflect the shareholders rights and obligations. When you start a business with third parties, it is very important that the main key points such as the function and remuneration of each shareholders, non-competition and exclusivity clauses, quórums, exit possibilities and procedures, etc.*
Q. Why do I need compliance?
A. *If you have a company in Spain, as a director you need to undertake compliance in order to protect your mercantile and criminal interests.*
Q. If I come from a non-European country, can I still set up a business and live and work in Spain?
A. *Yes, depending on your personal and professional circumstances, you shall be able to apply for residence permit. We will guide you throughout the proceeding, as you will need to comply with some requirements in order to proof that you will effectively be doing your own business in Spain.*
International Taxation
Q. Although I own a property in Spain for my own use, am I obliged to submit any tax return in Spain?
A. *Yes, every year you must submit a tax return for the charged income corresponding to these real estates. The taxable base must be calculated as 1,1% or 2% of the cadastral value of the building.*
Q. Is there any tax allowance if I inherit a company located in Spain?
A. *Yes, almost all the regions in Spain ( “Comunidades Autónomas”) establish a 95% reduction applied to the value of the shares of a Spanish Company, always that all the requirements are fulling, reducing considerable the taxable base of the Inheritance Tax. This is one the reasons to have a good inheritance tax planification.*
Q. Is a Spanish company that owns and rents real estate allowed to deduct the expenses related to the rental income?
A. *Yes, the Spanish company can discount the expenses in order to calculate its profit.*
Q. How do I start when I want to relocate my company in Spain? Can you help me to plan the Tax implications?
A. *We will help you identify your Tax obligations, and will plan a strategy to mitigate them.*
