Tax Advise on Property Ownership - GPS Direct.com Global Property Sales Direct

Tax Efficient Property Ownership:
Letting Return & Exit Route

By far the most tax effective way for a non-Spanish resident to own, rent and sell a Spanish property is via a Spanish holding company. However, the set up and ongoing running costs can be prohibitive. GPS-Direct, working with Spanish accountants, lawyers and developers, have the solution.

Not only would single apartment owners or owners with up to 4 units reduce renting taxes by up to 100%, save drastically on final property sale taxes, but also enjoy a complete management service.

Renting units of 10 properties can be significantly more cost effective and letting companies can be attracted to tender for such groups of apartments. GPS-Direct expect, representing group owners, to be offering for tender a minimum of 20 units to a single letting company. With such numbers, letting companies can do business with European holiday companies, offering a wide range of activities such as golf, water sports, hiking, etc.

Savings

For individual owners in the scheme purchasing at an average current purchase price can expect to save:

• 100% of taxes in respect of lettings each year.

• Up to 18,000 euros on the sale price taxes after 3 years, assuming a 25% price increase cumulative for 2 years (estimated increase from base launch price) and a modest 10% in the final year. This assumes transfer of property away from holding company for further savings, see below.

Extra Income

By way of more efficient letting as described above.

Sale of Property

The savings referred to above may be reduced to virtually nil if the apartment company share is transferred with full title rights to the new owner.

Administrator

For the owner’s complete peace of mind, an English speaking administrator would be appointed to handle day to day affairs, including control of the letting company and ownership sales and property transfers.

Example of Additional Costs

If the property is held under the umbrella of a Spanish holding company:
Assumes cost per unit with 10 units in holding company

One Off Setting Up Costs:

1. Accountants fees company formation
2. Solicitors fees
3. GPS-Direct liaison/administration

€ 300
€ 100
€ 500

Monthly Company Running Costs:

1. Accountants bookkeeping, fiscal advice, tax declarations, etc - €40
2. Administrator very approximate costs will depend on work imposed
Say between 30 to 40 euros, average = €35
3. Total = €70

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