Home
Blog
Buying Guide
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

Updated17.02.2026, 11.40

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 foreign company buy a property in Spain?Yes. A foreign company can purchase real estate in Spain. To do so, the company must obtain a Spanish foreign tax identification number (CIF). Additional corporate documents are required, such as company registration and authorization papers, and all documents must be apostilled and officially translated into Spanish if necessary.

How are the legal and financial procedures handled when a foreign company buys property in Spain?When a foreign company wants to buy real estate in Spain, all corporate documents must first be obtained from the company’s home country. These are the articles of incorporation, authorization and representation documents, company bylaws, and a trade registry certificate. All documents must be apostilled and officially translated into Spanish.

Once the documents are reviewed by Spanish authorities, the company must obtain a Spanish tax identification number (CIF). This CIF is mandatory and is used for the property purchase and all related legal and financial transactions. Since the company does not have active business operations in Spain, the tax advantages are limited, though purchasing real estate is still permitted.

What taxes do foreign companies pay when buying real estate in Spain?Foreign companies purchasing real estate in Spain are subject to the same purchase taxes as Spanish companies. These taxes vary by autonomous region. When the property is later sold, any profit made from the sale is subject to corporate income tax at a rate of 25%.

What taxes apply when a property owned by a foreign company in Spain is rented out?Foreign companies that own real estate in Spain and rent it out are taxed under Non-Resident Income Tax (IRNR).

Companies established in EU or EEA countries pay 19% tax on net rental income, meaning they can deduct eligible expenses such as maintenance, property management, and insurance. Companies based outside the EU/EEA are taxed at 24% on gross rental income, with no expense deductions allowed.

If the company is registered in a country classified by Spain as a non-cooperative tax jurisdiction, an additional annual Special Property Tax (Gravamen Especial) may apply to the property.

Is there a tax difference between a foreign company and a local company investing in real estate in Spain?Yes, there are some key tax differences. Local companies established in Spain are taxed under Corporate Income Tax (Impuesto de Sociedades) and can deduct business-related expenses from their taxable base. This provides a clear advantage for companies with active commercial operations.

Foreign companies, unless they have an operational presence in Spain, are generally subject to the non-resident tax regime. As a result, their ability to deduct expenses and apply tax planning strategies is more limited. Tax treatment may also vary depending on the company’s country of registration and whether a double taxation treaty with Spain is in force.

In general, for foreign companies that purchase property in Spain purely for real estate investment, there is no significant tax advantage compared to Spanish local companies.

Can foreign companies get a mortgage in Spain?Getting a mortgage in Spain as a foreign company is generally difficult if the company has no assets or regular income in Spain. However, some Spanish banks may consider a mortgage application if the company’s shareholders provide personal guarantees. This depends entirely on the bank’s internal risk policies.

If the foreign company establishes a local Spanish company, obtaining a mortgage becomes more feasible. In this case, banks assess the company’s financial statements, business activity, and financial sustainability before making a lending decision.