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How to Buy Property in Spain as a Company & Why It Works

How to Buy Property in Spain as a Company & Why It Works

Created26.11.2025, 09.30

Updated26.11.2025, 09.37

Should You Buy a Property in Spain Through a Company? Buying a property in Spain on behalf of a company is becoming a popular trend. When handled carefully, this strategy can help you optimize your taxes, increase legal security, and even cut some costs. However, this is not always the case, and guidance is essential.

On this page, we are explaining how to buy a property in Spain through a company.

Should You Buy a Property in Spain Through a Company?

It depends entirely on your objectives. If you are planning to use your property for personal reasons, this method might not work for you, as the process may be more complex and costly than buying a Spanish property as an individual. But, if your primary goal is to get rental income, or resell the property when the time is right, buying it on behalf of a company is definitely worth it in financial terms.

Advantages of Buying Property Through a Company in Spain

Buying a house in Spain through a company is a smart strategy for many reasons:

Tax Optimization: If the company is registered as a VAT entity and the property is used for business purposes (including short-term rentals), the company can deduct 10% VAT (IVA).

Cutting Costs: Any business cost (such as repairs, maintenance, utilities, management fees, and insurance) becomes tax-deductible, and your overall expense remains significantly lower.

Depreciation: If the property is bought by a Spanish company, the cost can be spread over the period that the business generates income, typically at a rate of 3% per annum.

Legal Security: Owning the property through a company separates your personal assets from the company’s liabilities. This provides extra security in case of debts, disputes, or legal claims.

Taxes on Property Purchase in Spain Through a Company

Here are the property tax costs in Spain when buying for a company:

VAT (IVA): 10%, for new properties. If the company is a NIF-IVA entity, the VAT is deducted, but it doesn’t apply to short-term rentals.

ITP (Property Transfer Tax): 6% to 10%, for second-hand properties. It is possible to convert ITP to VAT if both the buyer and seller are VAT payers and if the property will be used for commercial purposes.

IRNR (Non-Resident Income Tax): 19% to 24%. EU citizens can deduct their expenses from their taxes.

Property Tax (IBI): Annual tax based on cadastral value, 0.4% to 1.1%. Can be deducted from the company’s income in Spain.

Stamp duty (AJD): 0.5% to 3% depending on the autonomous community.

What If You Use the Property for Personal Reasons?

You can legally use the property bought through your company for personal reasons, like residence or holiday stays. However, you must issue an invoice and pay a tax on private use of real estate, determined based on market rates.

Steps of Buying a Spanish Property for a Company

Buying a property in Spain for a company is similar to buying as an individual, but there are additional requirements and nuances that depend on both your nationality and that of the company. To ensure a sound transaction, it is highly recommended to seek professional guidance from the start. The key steps involve:

Set up a Spanish company or register your foreign company in Spain.
Obtain a Spanish tax identification number (NIF).
Prepare all required documents for the purchase.
Select a property and complete the title deed transaction.

Getting a Mortgage for a Property in Spain for Companies

Companies can get a mortgage in Spain, but the overall process may be more complex, and guarantors may be required. It is best to speak directly to the Spanish banks to understand their individual terms.

Buying Through a Foreign Company vs a Spanish Company

Using a Spanish company to buy property in Spain is generally easier and less expensive.

A Spanish company allows you to avoid non-resident rental income tax in Spain (IRNR); however, setting up a Spanish company may be costly (over €2,000, including legal and notary fees).

Meanwhile, foreign companies have larger liabilities, including translation and legalisation costs of official documents, opening a bank account, obtaining a NIF/NIE number, potentially appointing a fiscal representative, and a 24% income tax. Opting for a Spanish subsidiary is a great solution to avoid these liabilities.

Frequently Asked Questions About Buying a Property in Spain for a Company

Can a company registered outside of Spain purchase a property in Spain?Yes, a company registered outside of Spain can purchase a property in Spain, but to do so, it must obtain a foreign tax identification number in Spain (CIF).

What are the legal procedures for foreign companies buying property in Spain?The company needs to provide its incorporation documents, powers of attorney, deeds, and commercial registry certificate from its home country. These documents must be translated into Spanish and apostilled. Once submitted in Spain, the authorities can issue a Spanish CIF.

What taxes apply during purchase and afterward for buying a property for companies in Spain?During the purchase, the taxes are the same as if buying through a Spanish company. After purchase, a non-resident individual must pay a small annual tax, just like Spaniards do, but companies are exempt from this tax.

Can a foreign company obtain a mortgage to buy a property in Spain?Yes, but the mortgage financing process may be complicated. Since the company has no assets in Spain, banks may require personal guarantees from the shareholders. It is best to discuss terms with each bank individually.

If the property is rented, what tax obligations would apply to the rental income?The non-resident tax would apply at the rate of 19% to 24%. Taxes are levied according to the country of residence: While EU citizens can deduct their expenses from their taxes, non-EU citizens (for the time being) cannot benefit from this right.

Are there tax differences between a foreign company and a Spanish company investing in real estate?Yes. The main difference is that non-EU foreign companies cannot deduct expenses and are taxed directly at 24% on income, whereas Spanish companies or EU-based companies can benefit from deductions and lower effective tax rates.