Key takeaways: Buying property in Spain
- Buying property in Spain requires choosing the right ownership structure. Individual property purchase Spain offers simplicity, while corporate ownership Spain provides tax flexibility and asset protection.
- Spanish real estate investments through a company can optimise taxes and limit liability, ideal for investors managing rentals or multiple properties.
- Understanding Spanish tax for foreigners is crucial: corporate structures are taxed under Corporate Tax (25%), while individuals face Non-Resident Income Tax and Capital Gains Tax.
- Strategic property investment Spain depends on long-term goals: personal use, rental income, or estate planning, all influence the best ownership approach.
Buying property in Spain is about more than finding your dream home.
Should you buy as an individual or through a company?
Each path has its own tax implications, legal responsibilities, and long-term advantages.
With new reforms and tax updates in 2025, understanding these differences is a must for any foreign investor.
For context on the wider legal environment, see our pages on property law in Spain and tax law and accounting.
The legal framework for property ownership in Spain
Foreign investors can acquire Spanish property either in their own name or through a corporate vehicle such as a Spanish limited company (SL).
Individuals must obtain an NIE (Número de Identificación de Extranjero) before purchase, while companies must be registered with the Spanish Commercial Registry.
Both options require due diligence, notary involvement, and registration at the Land Registry to secure ownership rights.
Buying property as an individual
For many foreign residents, purchasing in a personal capacity is the simplest route.
The steps are straightforward: obtain an NIE, sign the purchase deed before a notary, and complete registration.
However, buying as an individual means full personal liability for debts or disputes linked to the property.
Taxes include
- Non-Resident Income Tax (IRNR) for non-resident owners
- Capital Gains Tax on resale
- Inheritance and Gift Tax when passing property to heirs
This path is often best suited for second homes, retirement properties, or smaller investments intended for family use.
Buying property via a company
Corporate ownership provides more flexibility, especially for investors with multiple properties or rental income.
The most common structures for buying property in Spain
- SL (Sociedad Limitada – Limited Company): Requires €3,000 minimum share capital and limits shareholder liability to their contribution.
- SA (Sociedad Anónima – Public Limited Company): Requires €60,000 minimum share capital and is designed for larger investment projects.
Owning Spanish real estate via a company involves ongoing obligations such as filing annual accounts, paying corporate tax, and maintaining a registered office.
However, benefits may include the ability to deduct VAT on certain transactions, offset maintenance costs, and structure ownership more flexibly for estate planning or joint ventures.
Tax implications compared
The choice between individual and corporate ownership largely comes down to tax optimisation.
| Aspect | Individual Ownership | Company Ownership |
| Purchase Taxes | ITP (Transfer Tax) or VAT + AJD | Same as individual |
| Annual Taxes | Non-Resident Income Tax (IRNR) | Corporate Tax (25%) |
| Resale | Capital Gains Tax (19–28% depending on residency) | Taxed as corporate profit, potential reinvestment relief |
| Inheritance | Inheritance & Gift Tax applies directly to heirs | Shares in the company can be transferred, sometimes offering planning advantages |
Double taxation treaties may mitigate exposure for foreign owners, but careful structuring is essential.
Liability and risk management
Individuals buying property in Spain assume full personal liability.
This includes risks linked to tenants, community disputes, or outstanding debts tied to the property.
Corporate ownership Spain shields personal assets: liability is limited to the company’s capital.
For investors managing rentals or commercial property, this structure can provide greater protection and peace of mind.
Strategic considerations for foreign investors
Recent debates, including proposals for increased taxation on non-EU property buyers, highlight the growing complexity of the Spanish real estate market.
For international investors, corporate structures can serve as both tax-efficient tools and estate planning mechanisms.
Companies are also more flexible for joint ventures, co-investments, or large-scale property portfolios.
For succession, transferring shares in a company may be simpler than transferring multiple properties individually.
Regional focus: Comunidad Valenciana
Valencia and Alicante are among Spain’s most popular regions for international buyers.
In addition to attractive property prices, the Comunidad Valenciana offers a clear legal framework and established expat communities.
However, tax rates and allowances differ between regions.
For example, inheritance tax reductions in Valencia are not always identical to those in Madrid or Andalusia.
These regional differences should factor into your ownership decision.
Compliance and professional guidance
Common pitfalls include misuse of holding companies, failing to comply with accounting obligations, or overlooking anti-abuse rules designed to prevent tax evasion.
Deadlines for tax filings and company maintenance are strict, and penalties for non-compliance can be significant.
This is why engaging an experienced advisor is crucial.
At Delaguía y Luzón, we combine expertise in tax law and property law to provide international clients with tailored solutions.
Buying via a company or an individual in Spain?
Choosing whether to purchase Spanish property in your own name or through a company is far from a minor detail.
It shapes your tax exposure, your liability, and the way your assets are inherited.
For a holiday home or family residence, personal ownership is often the simplest option.
For larger portfolios, rental strategies, or succession planning, a corporate structure can deliver real advantages in tax efficiency and protection.
Why Delaguía y Luzón?
For more than 65 years, our multilingual legal team has guided international clients through real estate investments, offering integrated advice in property law, tax planning, and cross-border inheritance.
We don’t just process transactions; we help you build a secure foundation for your investment in Spain.
Take the Next Step
📞 Call us at +34 963 74 16 57
📧 Email felix.delaguia@delaguialuzon.com
💻 Use our secure contact form to arrange a consultation.
Secure your property. Protect your wealth. Invest with confidence in Spain.
FAQs
What are the pros and cons of buying Spanish real estate through a company vs individual?
When buying Spanish real estate through a company vs an individual, the main differences lie in taxation, liability, and flexibility. Corporate ownership offers potential tax deductions and liability protection, while individual ownership is simpler but exposes you to full personal liability.
What are the tax implications of buying property in Spain as a foreigner?
The tax implications of buying property in Spain as a foreigner include Transfer Tax (ITP) or VAT on purchase, annual Non-Resident Income Tax (IRNR), and Capital Gains Tax on resale. Corporate buyers pay Corporate Tax instead, which can offer planning advantages depending on the property’s use.
How does corporate ownership of Spanish property benefit international investors?
Corporate ownership of Spanish property for international investors allows for greater asset protection, flexible tax planning, and easier inheritance transfers. It’s particularly useful for investors managing rentals or holding multiple properties in Spain.
What taxes and liabilities come with individual ownership of Spanish property?
Under individual ownership of Spanish property, buyers face Non-Resident Income Tax, Capital Gains Tax, and Inheritance or Gift Tax. Unlike a company, individuals assume full personal liability for any debts or disputes related to the property.
How can a non-resident purchase property in Spain?
To purchase property in Spain as a non-resident, you must obtain an NIE (Foreigner Identification Number), open a Spanish bank account, sign the purchase deed before a notary, and register ownership at the Land Registry. Non-residents should also plan ahead for ongoing tax and reporting obligations.
What are the advantages of owning Spanish property through a limited company?
The advantages of owning Spanish property through a limited company include limited shareholder liability, possible VAT deductions, the ability to offset costs, and more efficient estate planning through share transfers instead of direct property inheritance.
What should non-EU buyers know about Spanish real estate investment?
Spanish real estate investment tips for non-EU buyers include researching regional tax differences, choosing between individual and corporate ownership, and ensuring compliance with Spanish accounting and registration laws. Working with an experienced legal advisor is strongly recommended.