Buying a House or Buying a Company in Spain.

Sometimes you get offered the chance to buy a company as opposed to a house. This is often the case in Portugal where houses are bought as company assets and therefore you get a chance to buy a company and paying a lot less tax. However in Spain this situation is slightly different. There used to be the possibility of buying the company and only paying 1% tax in Spain. This still exists but if the company has only one asset, that being the house, then it is very likely that the tax office will charge you 7% tax. And then they will probably try to make you pay a fine for trying to defraud them. Also businesses in Spain can be checked out for debt in the social security and tax office but not to third parties so you may buy what seems a really solid business only to find out down the line that there is a huge list of creditos from unpaid suppliers to unhappy customers who havent received their refunds. This is what you need to know then, firstly is it actually possible to buy the company? Let's assume you are going to buy a bed and breakfast property like this bed and breakfast in Cordoba for example. Then if the property is the only asset but there is income from rentals than it is very possible, but not certain, that you will be able to buy the company itself and pay just 1%. However this is only when the property is owned by the company. Most bed and breakfast property is owned by the people who live there and they do some bed-and-breakfast, either on the side or as a separate company from the property. The reason to do this is obvious. You protect the property from any potential bankruptcy of the company. Therefore it is very important if you are going to buy a company in Spain that you look into the legal aspect of buying it. Do not just accept the word of the owner that it will be a good idea to buy the company rather than the property. You may have heard that this is the norm in Portugal but it is not in Spain. Legal advice on this issue is very important if you want to avoid not only the tax but also a huge fine if you do underdeclare. If you need any advice on this of course just get in touch and I will put you in touch with a lawyer who specialises in this type of case. Related Property 1) Gilet House For Sale 2) Torres Torres Guesthouse for sale