Spain cracks down on 'aggressive tax planning' by foreign property investors

With Spanish tax authorities prosecuting tax evaders and the launch of the beneficial owner register, anyone invested in property via a corporate structure should review their tax position. León Fernando Del Canto, a barrister at Normanton Chambers, examines the tax rules

There are more than 5,000 private Spanish properties valued at over £1m owned by foreign investors, most of which are UK residents. The majority of these are set up as international corporate structures as a way of minimising tax or avoiding Spanish income tax for non-residents, as well as wealth tax and tax relating to transfer of ownership. Hence properties were bought up throughout Ibiza, Marbella, Tenerife and Mallorca. 

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