During the course of the previous year the directors wished to transfer ownership of the property to their personal names by way of a deed of donation. At the date of this report the transaction has not yet been fully complete and the Land Registry in Spain still records the property as being owned by the company . Once this transaction has been fully completed there will be a potential tax iability in Spain amounting to 40000 euros being the gift tax which may may make transaction prohibitively expensive . The director's are considering the legality of the transfer and awaiting further advice as to the ownershp of the property with their agents and the validity and timing of payment of this tax with the respective tax declaration to the Local Tax Office
Until the matter is clarified, the Director's consider that the property is owned by the company and no tax liability has been crystallised . They are currently consulting with their Agents in Spain and the UK to progress this matter