tax implications business running in the UK and start a new business in spain
I'm looking at potentially buying a villa, small b&b or hotel in spain. I have limited company in the UK that I was wanted to use the business funds from that...can I do that and also what are the tax implications to keep my business running in the UK and start a new business in spain whilst residing in spain? Quite a multi layered question but any advice is welcome
  • Spain
  • Commercial and Business Law

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posted 6 months ago
Here are a few key considerations for your situation of using a UK company to purchase property and start a business in Spain: Funds Transfer - You can transfer funds from your UK company to Spain. The transfer would be treated as a shareholder loan or capital injection, not taxable income. Corporate Structure - You may want to set up a Spanish company to own and operate the property/business. This separates liability and is easier for tax/regulation compliance rather than direct UK company ownership. Taxation - There may be capital gains, property transfer, and other taxes triggered in Spain by the purchase. Ongoing corporate taxes in Spain for any income. Coordinate with an accountant. Residency - Obtaining tax residency in Spain can provide tax advantages versus operating businesses remotely long-term from the UK. Seek specialized cross-border tax planning advice. Business Activity - The nature of the business (passive B&B income vs services provided) can impact tax obligations. Clearly define business activities. UK Operations - Your existing UK company can continue operating independently. No direct tax change there. Though consider VAT, accounting, and filing needs if splitting time.
posted 7 months ago
Good morning, Regarding the issues you ask, as there are various legal and tax implications, we would have to address them together, in order to study the specific case and offer you appropriate solutions. What availability would you have for a call? Best regards.