Investing in Reforming a hotel and operating

Information and questions about the Law in Spain and Andalucia.
Mike.M
Andalucia.com Amigo
Posts: 178
Joined: Mon Jan 09, 2012 11:31 pm
Location: Asturias & Essex

Investing in Reforming a hotel and operating

Postby Mike.M » Mon Feb 20, 2012 1:28 pm

My wife and I are non-resident and have owned a habitable property in Asturias since 2007. Over the next year, this property will have in excess of €600k invested into it to reform into a hotel / restaurant – this cash is currently sitting in a personal Spanish Bank Account.

So now my thoughts turn to the vehicle I should use to try and mitigate:
- IHT
- Tax efficient way of accounting for the expense of investment (e.g. losses carried forward etc.).
- Exposure to liability when operating

I could reform / own the business as an autonimo or I am told by my local EAT as a ‘foreigner with a registered economic interest’, with both of these vehicles allowing me to reclaim VAT on the reforms and certainly the autonimo allowing me to reclaim VAT on subsequent trading. I have to do a little more research as to what the hacienda means by a ‘foreigner with a registered economic interest’.

Other options might be to put the property into a UK Ltd Co. And trade through that Company as an ‘office’ in Spain or a subsidiary S.L.

I could also retain the property personally and lease to an SL that I setup.

I’m sure there are a number of permutations thereof, but I’d appreciate your thoughts and / or pointers.

Also, if anyone can recommend a tax adviser that thoroughly knows company tax law in UK / Spain (ideally UK based), I’d be most appreciative.

Mike

Paddy Pumpkin
Andalucia.com Amigo
Posts: 66
Joined: Mon May 01, 2017 12:06 pm
Location: Madrid

Re: Investing in Reforming a hotel and operating

Postby Paddy Pumpkin » Sat Jun 03, 2017 11:50 am

Hi Mike

I am looking at doing something similar, did you get your project done? Which 'vehicle' was the option you chose?

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Flexo
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Posts: 371
Joined: Thu May 07, 2015 10:14 am
Location: Cordoba province

Re: Investing in Reforming a hotel and operating

Postby Flexo » Sat Jun 03, 2017 4:26 pm

Don't know about Asturias but here in Andalucia there is no way to register a business with a higher asset/ investment value than 500k EUR or so without having a residencia. The registro mercantil can cause a problem even at lower values.


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