Quill Assets | The Birth of a Shelter | Part 1:01
A Quill Group Company
A ‘Patrimonio Familiar’ Shelter
Part One:01: Achieving Taxlessness Canary Isles Version
QUILL ASSETS, Registered Address: Harbro House, Crown Lane, Denbigh LL16 3SY United Kingdom. Reg No. 2239135
The Willwriters Association
The Association of Lawyers
© The Quill Group S.L. v1.03,07F07
The Birth of Your Shelter | Part One: 01
Taxlessness - through an office space and a fully managed franchise Whilst even simple Tontine or Conquistador class shelters can eliminate HUGE levels of taxation from your life - the FULLEST ‘taxlessness’ advantages Patrimonio Familiar ‘Castell’ class shelter - can ONLY be enjoyed by an ‘active’ orange grove shelter
Reorganise so as to qualify
The expression ‘orange grove’ - when we use it here - and elsewhere in Quill shelter literature - is of course - a ‘figurative’ statement - to mean ‘….a (genuine) Spanish family business that grows things or produces things or does something it can sell…’ - based upon the work of at least one human being.
As the minimum employment contract in Spain involves a payment €550 per month plus social security contribution - this ‘shortfall’ from what is required for taxlessness - can often be resolved by making a family member - i.e. Mum, Dad or someone else - ‘the employee’ - so that these shelters can qualify to be ‘taxless’.
Qualifiers
‘Castell’ status is possible for anyone
If your shelter does not yet qualify it still may be that your families affairs can be RE-ORGANISED - so that you can add a genuine business into your shelter - (this can be discussed - and arranged during the consolidation meeting).
The full tax benefits of a Patrimonio Familiar shelter can involve the almost total ‘sheltering’ of income and capital gain from : inheritance tax, gift tax, wealth tax, withholding of tax, corporation tax and income tax.
If not - then - you should look closely at arranging for Quill to IMPLANT the items you are missing - i.e. an office ‘space’ - or / and a fully managed Franchise complete with an employee - into your Conquistador or Tontine These benefits of sheltering are so great that shelter. It can then be a fully fledged Castell class many - (or most) - ‘English speaking’ families - taxless - shelter. would wish to be in a position to enjoy them. 1. The lack of an office can be solved - virtually The only way for your shelter to qualify for ALL of these tax advantages - however - is to look - and be - to all the world - like an orange grove that is actually growing ‘real oranges’. It has for some time been decided by the Spanish tax authority that a genuine indicator of active business involves it having at least one employee - or - if a property rental company it having (1) at least one ‘employee’ - and (2) ‘an office’.
forever - by an office timeshare arrangement giving your shelter OWNERSHIP and the exclusive use of - as many days of a fully fitted office as it requires (usually one day is sufficient) to be able to run its business affairs. Perpetual * ownership of just one day of a fully fitted office in Spain - involves a once and for all payment of €3,000.
In some ‘English speaking’ families - that are now shelter owners - it happens that there is an existing family business - that can be ‘dropped’ into the shelter - with an existing employee - (or a member of the family - or someone) who can become ‘the employee’. There are other families - however - who have genuine business interest - such as renting out an apartment - though they do not have an employee - nor an office space. © The Quill Group S.L. v1.03,07F07
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The Birth of Your Shelter | Part One: 01
The office timeshare ‘escritura’ is owned by PROPERTY PRICE your shelter - to legally meet the qualification. 200,000 2. The lack of an employee is resolved with a ‘self 250,000 funding’ (in fact profit making) ‘fully 300,000 managed’ Franchise.
The cost of the Franchise The Franchise fee is made up of : 1. The deposit - or - if preferred outright full price upon a small (branded van) - which always belongs to the Franchisee / the shelter. There are options to pay a deposit with a monthly loan paid from the earning - or - to buy either a brand new - or second hand vehicle outright - for cash.
TAX SAVING €13,000 €16,250 €19,500
400,000
€25,000
500,000
€32,500
600,000
€39,000
Franchising Although most of us know that McDonalds™ and many other brands we commonly use are ‘Franchised’ - few know little else about Franchising.
Typically a vehicle might cost €4,000 second hand - or €10,000 new.
I’ve got TranQUILLity in my life
With twenty years experience of Franchising The Quill Group is able to help you to IMPLANT a fully managed - fully operational - Franchise employing at least one employee within your shelter. 2. A fee payment of €3,000 covering the setting up and administration of the Franchise and keeping of account and to provide uniform and equipment to the operative and the recruitment and training cost of the operative.
A Franchise is a business format - where a person - (or in this case - your shelter company) ‘buys the right’ to trade as - a carry out business as a ‘branded’ Franchise activity to benefit from all its income .
In return for payment of an initial Franchise The total Franchise fee is therefore (1) of €3,000 and an ongoing management fees the Franchisee plus (2) the deposit or cost of - a vehicle owns the business and its income. (typically - a total of €4,000 to €13,000) - being A fully managed Franchise operation is made up €4,000 to €18,000. of four ‘elements’ : Together with a €3,000 ‘plug in’ office this total The Franchisor - who owns the brand and cost of between €7,000 and €21,000 is paid for who has established a working business - with from by the savings in purchase tax / stamp duty. clear methods of operation - and who provides training, management consultancy support and advice to Franchisees. © The Quill Group S.L. v1.03,07F07
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The Birth of Your Shelter | Part One: 01
The Franchisee - is the person who is in their There is - by chance - a situation in the Canary own business (i.e. shelter) - operating the Islands that provides an ample number of ‘plug Franchise format. in’ management Franchises - of varying sizes and The Franchisee is saved a lot of time and types to make this option available to a number trouble in developing a branded activity and of Quill formed shelters. know-how - because the Franchisor has Your shelter can buy its low cost - low already done all of that. involvement ‘plug in’ office and Franchise - to They are left to operate that brand - in their become a taxless ‘Castell class’ shelter. You will particular territory - either themselves - or - almost never be aware that you own it - other through staff (operatives) - typified of course than for the €100 to €700 per month income it by Pizza and Burger Franchises throughout generates for your shelter. the world.
Your family is able to reduce their tax upon Operatives - The operatives are those people income or profit to 3% - 5% - not only upon the employed by the Franchisee to operate the Franchise income - but - also - on any and all other income or profits they choose to direct into Franchise business. the shelter - from the UK or Spain or pensions or These are the ‘cooks’ and ‘serving staff ’ in a ‘Create’ by it actively trading etc,. Burger or Pizza bar - or the people who deliver dog food on a Franchised dog food round, or, the pool cleaners, in this situation - who work whilst the Franchisee counts the money ! A fully Managed Franchise - The Franchisor can fully manage a Franchisees business - if for example they are ill - or - as in this case to meet another desirable objective. Where a Franchise is fully managed the Franchisee owns the business - but - does not necessary (or generally) actively ‘do anything in it’.
TranQUILLity pool cleaning
The owner of your local McDonalds® Franchisee In the situation we are proposing - your shelter - for example - is not likely to ever be in the will become the Franchisee of a TranQUILLity burger bar premises - once the business has Pool Cleaning Franchise. begun to trade. The operatives (employees) are fully managed The ‘work’ is done by operatives (who are paid by the Franchisors management team. employees) - managed by the Franchisor All day to day activities of your Franchise are run The fully managed Franchise approach is a by your operator - who is employed - but - earns perfect ‘plug in’ for a Patrimonio Familiar shelter all of his own costs overhead and salary - and wanting or needing - the taxless status of a who is managed by the Franchisor Castell class shelter (as well as a being useful TranQUILLity Pool Cleaning. additional monthly income from their Franchise The Franchise agreement between the business). Franchisor and the Franchisee makes the day to day running and management of the Franchise Perfect for Shelters the full responsibility of the Franchisor who Sometimes things just fit like a glove (though of as a consequence - deducts a management course mostly they do not). © The Quill Group S.L. v1.03,07F07
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The Birth of Your Shelter | Part One: 01
service fee (that is higher than if the Franchisee was running their own business). The shelter receives a weekly income - from the activity of its operative (the amount reflects that they are doing nothing - other than having provided some capital - and a valuable opportunity to the operators to be employed). This can nevertheless be a useful income of perhaps €100 or €200 per month to your shelter.
Full management
pool cleaning services
TranQUILLity pool cleaning
All pool cleaning monies are collected by the TranQUILLity Pool Cleaning creates a perfect Franchisor’s accounts department - on behalf of solution for many people : the Franchisee - and his operative using a Unsafe Pools - Throughout the Canary separate shelter bank account - kept for this Islands there are tens of thousands of purpose alone. swimming pools. Each requires proper and All book-keeping and accounts are done for the professional cleaning - on a weekly basis or operative and the Franchisee by the Franchisor more often if a pool is used regularly (or - by and are automatically integrated into the yearly people who heavily apply sun cream etc.) accounts of the shelter. Many pool cleaners have never had any of the The operative (employee) is paid - and crucial training in the physics of pool provisions are made for - all of the relevant management or about the use of chemicals employment legislation in Spain including to be able to properly carry on business as a redundancy payments in the event of the professional pool cleaner operative being terminated or resigning to be If pools ARE NOT - cleaned professionally and routinely dealt with. correctly - and tested and chemically checked The operative receives 70% of the revenues their before or after each cleaning - then - those work creates - made up as a basic minimum who use them can become physically ill from wage including deduction for social security stomach bugs or can suffer eye and skin plus a bonus - over and above that. problems. The Franchisor retains 15% by way of a management service fee - and - the Franchisee is paid 15% of their operatives revenues. It is (generally) perfectly practical for a shelter to buy the minimum ‘fully managed’ Franchise costing from €3,000 to €7,000 - for far less than purchase tax / stamp duty that they are then legitimately able to save - when they buy any new property in the Canary Islands. Or - to buy the Franchise at a fraction of the yearly tax they would pay on profits or income fed through their shelter.
© The Quill Group S.L. v1.03,07F07
Most often the effects from a swimming pool are not felt until several days after the pool has been used - and therefore there has been no immediate warning not to use the pool making matters far worse. All work done by TranQUILLity Pool Cleaning operatives is checked by a quality controlled manager (and yet it is likely that having a pool cleaned by TranQUILLity will cost no more than by ‘a cowboy’ pool cleaner). Illegal Pool Cleaners - The Hacienda (Spain’s tax authority) is well aware that around 80% to 90% of all pool cleaners are illegal.
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The Birth of Your Shelter | Part One: 01
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we scrub you sit job done!
Your swimming pool or Jacuzzi are an important - and fantastic part of life - here in the sun – but – must be regularly – thoroughly – and professionally – cleaned – if you (or your guests) are not to suffer some pretty nasty, and expensive, problems from chemical burns - bugs – and fines (i.e. if you have an unhealthy pool – or use an illegal pool cleaner). What you need is TranQUILLity. Our pool cleaners are all employed members of staff, who are fully trained and qualified. Their work is supervised and quality control checked. Yet the costs of us cleaning your pool – reliably and perfectly - will almost certainly be less than you are currently paying. Call us today for further information on how we can help you live a more TranQUILL life.
TranQUILLity
TM
pool cleaning services Tel: 628 778 168 today
The minimum fine to a pool owner - for employing an illegal worker is €3,000. Pools that are being cleaned by illegal pool cleaners are an increasingly easy target for the Hacienda to gather in taxes. A pool cleaner only has to park their vehicle carelessly and upset a Spanish neighbour who will ‘know the ropes’ by denouncing that pool cleaner / neighbour - and the authorities have big and easy bonuses to collect The result of denunciation is that the pool cleaner will be trailed - around several properties where they clean pools - and - at one of those properties - where the householder is present - the cleaner and the householder will be challenged and interviewed The illegal worker themselves is stopped from working - and has to complete a disclosure of all income received - making payment of back taxes and paying tax before being able to work again.
pool cleaning services
The pool owners may - further - become liable for failing to deduct a 15% retention from all payments made to the illegal subcontractor All in all - anybody with a pool - and especially those allowing it to be used by friends, children or holidaymakers - really do need to use the services of a professional and fully trained pool cleaning company. This does not only apply to pool cleaning. Villa cleaning, window cleaning, garden maintenance - and so on are covered by TRANQUILLITY.
© The Quill Group S.L. v1.03,07F07
pool cleaning services
pool cleaning services
68 78 1 7 8 62
branded vehicle
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