Which FIP+Holding strategy is right for you?
Choose your scenario and optimize your taxation.
Each option is more efficient than the previous one.
High asset exposure
📌 You have property and assets in your name.
💸 You need to receive all income into your personal account.
⚠️ Higher tax burden, more direct control.
Moderate heritage exhibition
📌 You have few assets in your name.
💰 You only transfer enough to cover essential expenses.
📊 Less taxes, more optimization.
Minimal heritage exposure
📌 You have nothing in your name.
🚀 You spend without paying taxes thanks to the FIP.
✅ Maximum efficiency and tax protection.
High asset exposure
Have properties and assets in your name, which implies that You need to receive all of the FIP income into your personal account to cover direct debit expenses (mortgage, utilities, insurance, etc.).
📌 Tax implications:
- High tax burden because everything transferred must be justified as distribution of personal profits or income.
- Personal Income Tax as savings income (19-30%) in distributions from the FIP, compared to 19-47% if you operated as a self-employed person or with an LLC in income attribution.
- Savings compared to being self-employed, but lower tax efficiency compared to the other scenarios.
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Points you should not ignore
- From the first moment the LLC is profitable
- From €55,000/year the FIP+Holding LLC structure is profitable
- Smallest % loss possible with Self-Employed: 38% when earning €20,000
- Lowest possible % loss with LLC: 28% when depositing €20,000
- Lowest % loss possible with FIP + Holding LLC: 25 % when entering €200,000
🔎 Example Case: €75,000 annual income
Comparison of taxation according to the structure used in Spain.
🔹 Option 1: FIP + Holding LLC (Profit Distributions)
- IRPF (Savings Base, 19-30%) about 75,000€ → 16.130€
- Cost of maintaining the structure → 5.800€
- Total paid: 21.930€
- Annual net: 53.070€ (4.422€/month)
🔹 Option 2: LLC under Income Attribution Regime (IRPF Base of Work)
- IRPF (Work Base, 19-47%) about 75,000€ → 24.951,50€
- LLC Maintenance Cost → 1.450€
- Total paid: 26.401,50€
- Annual net: 48.598,50€ (4.049,88€/month)
🔹 Option 3: Self-employed (IRPF + Self-employed Fee)
- IRPF (Work Base, 19-47%) about 75,000€ → 24.951,50€
- Self-employed quota → 7.050€
- Total paid: 32.001,50€
- Annual net: 41.968,50€ (3.580,71€/month)
🔎 Conclusion:
- The FIP + Holding LLC It is the most efficient option, leaving a 11.8% more net that the LLC in attribution of income and a 26.3% more that the self-employed regime.
- The LLC in income attribution It is more convenient than being self-employed, but it still has a high tax burden.
- Be self-employed is the option less efficient, due to the double burden of personal income tax and the self-employed fee.
💡 Optimizing your tax structure can make a difference of up to €11,100 per year in taxes alone.
Moderate heritage exhibition
Have few assets in your name, so you only need transfer the right amount from the FIP to cover essential and domiciled expenses.
📌 Tax implications:
- Reduction of the tax base, minimizing the tax burden while still covering personal expenses.
- Can supplement expenses with the LLC card or cash, avoiding paying unnecessary taxes.
- Part of the money is reinvested within the Holding LLC, allowing to reduce the fiscal impact and optimize the tax burden in the long term.
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Points you should not ignore
- By sending only what we need to pay for direct debit expenses, the tax burden generally remains below 20%.
- The less money we need to pay in taxes, the less % we would lose in taxes.
- It allows you to spend money from the LLC without paying taxes or declaring non-nominative expenses. (Under your responsibility)
- It allows part of the profits to be reinvested in the Holding LLC without paying taxes and makes maintenance of the structure cheaper.
🔎 Example Case: €102,000 annual income
Let's take the case of a person with the following distribution of income and expenses:
💰 Annual income:
- 20.000€ to cover car and mortgage.
- 12.000€ for whims and other expenses.
- €70,000 reinvested in the FIP, generating a 10% annual yield.
📊 Taxation:
- Total received: 32.000€
- Personal Income Tax (Savings Base, 19-30%) on €20,000 → €4,080
- Total fiscal impact: Just one 12,75% of what is collected is lost in taxes.
📈 Return on investment in FIP:
- Gross Yield (10%): 7.000€/year
- Cost of maintaining the structure (FIP + Holding LLC): 5.800€/year
- Final net performance after costs: 1,200€/year
🔎 Conclusion:
This strategy allows cover all personal expenses with minimal fiscal impact and, in addition, maintaining the practically self-sustaining structure thanks to the returns on reinvestment.
Minimal heritage exposure
You don't have nothing to your name (no property or personal assets), allowing you to Minimize transfers from the FIP and maximize tax efficiency.
📌 Tax implications:
- Instead of receiving money directly, FIP covers all your personal expenses: housing, vehicle, food, leisure, etc.
- These expenses can be declared as donations in kind (ISD) or profit distributions (IRPF based on savings).
- Protected heritage: Since you have no assets in your name, you have maximum security against debts, seizures or future tax inspections.
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Points you should not ignore
- We transfer just enough to pay the personal income tax on the benefit in kind. (If we declare it, under your responsibility)
- With a high lifestyle, we should not pay more than €5,000 of ISD with this system.
- By not having anything in our name we have maximum protection against debts and seizures.
- Maximum efficiency in case of inheritance, our heirs would become the new beneficiaries free of charge.
- This calculation does not take into account the fixed costs of the FIP+LLC that would have to be considered in parallel.
🔎 Example Case: Taxable base with €30,000 of ISD
Let's take the case of a person who lives in a house owned by the FIP valued at 250.000€, drives a Tesla of the FIP of 50.000€, and also receives €15,000 in donations in kind throughout the year (covering expenses such as food, water, electricity, supplies and travel).
📌 Calculation of ISD:
- Taxable base: 30.000€
- Total to pay for ISD: 4.200€
🔹 Option 1: Direct donation of €5,000 to cover the ISD
- It already includes the ISD in the calculation.
- You would have net: 800€
🔹 Option 2: Distribute €5,000 as profits on the savings base
- It is taxed at 19% in Personal Income Tax (Savings Bank).
- You would have net: 550€
Conclusion:
- If the FIP donates the money directly to you to pay the ISD, you stay with more net (800€).
- If you choose to distribute it as profit from savings, you end up with less (€550), but you avoid the “donation” label.
🚀 Final Conclusion
If you like Maximize tax efficiency and Protect your assets, the best option is a FIP + Holding LLC structure with minimum heritage exposure. The less you need to transfer on a personal basis, you will pay less taxes and you will optimize your structure more.
💡 Optimizing your tax strategy can make a difference of up to €11,100 per year in taxes.
Fleeing tax hell, but helping others prosper
We started out just like you, looking to escape an oppressive tax system to grow our business. Now, we're here to help you do the same.
Edgar, Advisor at Devil Marketing
