There are a number of ways to purchase the property:

• In your name
• n the joint names of you and your spouse as co-purchasers
• In your children’s names or in the name of somebody who will eventually inherit the property from you
• In the name of a limited company, whether English, Spanish or “off shore”

Each method has its own advantages and disadvantages. Everything depends on your own personal circumstances. Your legal representative will be pleased to discuss the various ways of buying and to advise as to what would be the most advantageous method to fit your circumstances.

It is worth paying careful attention to this point because of the potential tax and other savings, which can be made at a later stage.

These tax savings arise because of the Spanish system of inheritance tax under which gifts on death can still attract very high rates of taxation.

In the past, some gifts attracted rates of over 80%. These tax level no longer exist.

The savings also arise because of the fact that each time a property changes hands, certain taxes and fees become payable. If, therefore, you can prevent the property being inherited and minimise the number of times it changes hands, you can greatly reduce your tax liabilities.

As always, with tax savings schemes there is a danger that the Government can come along and close the loopholes that allow the schemes to operate and, as always, there are disadvantages to them as well as advantages. In each individual case, you will have to weigh up the advantages and the disadvantages and decide how you wish to deal with the purchase.