Buying Spanish Property Through a Company
A company should be selected for a documented commercial or ownership reason, not an assumed tax saving. Compare the total consequences of personal ownership and the proposed structure before incorporating or signing a reservation.
Define the purpose
Explain whether the home is for family use, investment, development or a business. List the intended shareholders, their residence, funding sources and expected holding period. Ask your advisers to document why the structure fits those plans.
Model the whole ownership cycle
Request a comparison of acquisition costs, annual administration, taxation of income, private use by shareholders, distributions and eventual disposal. Include the cost of closing the company. Ask how the outcome changes if you sell the property rather than the shares, or move country.
Plan administration and finance
Identify responsibility for accounts, tax filings, corporate decisions, beneficial-ownership information and banking requirements. Discuss lender expectations and guarantees before assuming a company can obtain the same finance as an individual. Keep personal and company spending clearly documented.
Review existing companies carefully
Buying shares in a company that owns a property is a different investigation from buying the property itself. Ask for corporate, financial and tax due diligence as well as property checks. Request advice on historic liabilities, contracts and the evidence needed before funds are released.
Frequently asked question
Does company ownership automatically reduce tax?
No. Ask for a written comparison based on the intended use, residence of the parties and the full ownership and exit costs.
General information, not individual legal or tax advice. Ask a qualified adviser to confirm the position for your property and circumstances.
Related guidance
- Property Taxes in Spain: A Planning Overview
- Property Lawyer Costs in Spain: Comparing Quotes
- Buying property in Spain
Contact Property Lawyers to enquire about finding an independent adviser for your transaction.