14 Dec I have heard that the S.L. company laws regarding foreign residents buying property in Spain has changed. I remember before there was a limit of 1 to 2 yrs and a max. 30% requirement for passing on or changing names on the stock,otherwise it was considered a private sale and taxed as so with an additional fine. Has this changed? Esp. if one parent who is the holder of the shares wants to pass it to his/her child?What does the new law offer and what one should consider?
The present regulations in force regarding transfers of shares of companies directly (or indirectly) owning real estate properties situated in Spain when they represent 50% or more of the Company’s active (total assets) establish that these share transfers pay a transfer tax as if they were normal real estate transfers. In the present moments, this tax is 7% in Andalucía.
The same tax is applicable to transfers of shares owned as a result of provisions of Spanish real estate properties into companies at the time of the formation of such companies, or of the share capital increases as long as the elapsed time between such provision and the transfer is three years or less (before it was one year). 2007-08-27.