A trust in Spain is seen as a fund which does not have a legal personality. Its main usage is to transfer ownership rights to a beneficiary, who will own various types of assets or part of the assets. In the situation in which the settlor (the person who will set up the trust) will transfer ownership only to a part of a property, this aspect has to be specified in the trust’s documents. Persons interested in opening a company in Spain as a trust will benefit from lower taxation schemes when the respective properties are transferred. Our team of company formation representatives in Spain can offer in-depth advice on the main benefits deriving from a trust.
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Parties to enter a Spanish trust
A Spanish trust is established between three main entities. A fiduciary relation will be set up between the settlor and the trustee. The latter will be in charge of managing the trust’s assets in accordance with the stipulations presented by the settlor. Persons interested in starting the procedure of company registration in Spain for this structure will also need to appoint a beneficiary.
The Spanish trust is not regulated by a specific rule of law, but the main legal aspects referring to this vehicle are given by the Article 6.3 of the Royal Decree 304/2014. Our team of company registration agents in Spain can offer further assistance on the provisions of the Royal Decree, referring to legal framework under which trusts can operate in this country.
Main benefits of the Spanish trust
One of the benefits of the Spanish trust refers to the possibility of transferring ownership rights without having to pay the inheritance tax. The Spanish inheritance tax can increase to a high rate in the situation in which the respective assets are transferred to a person who is not a close relative of the trustor (up to 81.6%).
Foreigners who want to start the procedure of company formation in Spain must know that through a trust, their property (as long as it is considered non-Spanish property) will be exempted from paying succession taxes.
Those who want to set up a Spanish trust are invited to address to our team of consultants in company registration in Spain, who can offer more details on the tax benefits deriving from this business structure.