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.