Whoever deals with company law in Spain, will quickly discover the advantages of the benefits of the S.L., therefore the Spanish Ltd. It is the most common form of company and is also of interest to many foreign clients.Who benefits from a Sociedad Limitada (S.L.)?
At a time when, in tax law, the interposition of an S.L. could save costs when purchasing a property, especially with regard to property tax, this structure was a popular way to purchase property for a value of 1,000,000 Euros or more. This has changed not only with the rulings of the German Finance Court (keyword "hidden profit distribution"), but also with the changes in Spanish tax law. Property tax cannot be simply circumvented if the company is merely a "property holding" (patrimonial) society. This previously quite considerable advantage therefore unfortunately no longer exists.
Something different applies to "active" companies, which really show activities (not just renting the property to the manager) and generate income (or also losses). In these cases, an S.L can represent a relatively cheap alternative.
The company has minimum assets of 3,000 Euro and can be founded and activated within a few days. In addition to the formation costs of the company, however, there are also the costs for their support and the necessary tax returns, as well as the annual financial statements. In the case of "inactive" companies, one therefore must check carefully whether this way via a company is really the best one.