According to data from the Official College of Registrars, between 2010 and 2017, 13.7% of home purchase transactions in Spain were carried out through companies. Buying a home with a company is a completely legal practice in our country, even for those who are not residents. Although in some cases this Property Valuation Adelaide type of transaction may entail tax advantages compared to the purchase made by natural persons, it is necessary to take into account several factors to determine its advantages and disadvantages in each specific case.
The patrimonial companies , regulated by article 5 of the Corporate Tax Law, are those civil or mercantile companies dedicated to the management of a patrimony, generally composed of securities or real estate. To have this consideration, more than half of your assets must be made up of securities and not be subject to economic activity. In this sense, it is important to bear in mind that the rental does not count as such, provided that this activity does not involve the hiring of employees.
Tax benefits for large estates :
Homes managed through Property Valuation Adelaide companies are taxed through Corporation Tax, with a general rate of 25%. When the owner is a natural person, the taxes related to this property are paid through personal income tax, applying the corresponding tax rate according to the level of income, which can range between 19% and 45%.
However, for the purposes of the Tax Agency, the sale of the home only generates an income in personal income tax when it generates a capital gain. This difference means that buying a home with a company can represent significant savings when we talk about high net worth.
Value Added Tax (VAT) deduction :
This tax is applied to the purchase of any new construction home , common both for individuals and for companies. Currently, its amount amounts to 10% of the total value, although it can be Wikipedia reduced to 4% in the case of officially protected housing under the special regime or public promotion.
From this point of view, buying a home with a company can be an advantage in some cases, in which VAT is considered a deductible expense, which is not applicable when the purchase is made by a natural person.