Short answer: you can buy, rent out or sell a home in Spain through a company, Spanish or foreign. On the Spanish side, the purchase tax does not change (7% ITP for a resale home, 10% VAT plus 1.2% stamp duty for a new build). A Spanish company pays corporate tax; a company that merely holds assets doesn't get the reduced SME rates and in principle pays 25%. A foreign company without a permanent establishment in Spain pays non-resident income tax on rent and capital gains, but not the tax on deemed income, which only applies to individuals. The special levy of 3% per year only affects companies from tax havens. What happens in your own country varies greatly by country and structure: always have that checked in advance.
More and more buyers ask us whether they should buy their Costa del Sol home through a company: their existing company, a British Ltd, a French SCI or a new Spanish SL. The answer is rarely simple. A company can have advantages for letting or for an investment, but it brings costs, paperwork and sometimes extra taxes, especially if you use the home yourself.
In this article we explain what does and doesn't happen on the Spanish side when you buy, own, rent out and sell through a company. For the consequences in your own country we only give the principles, because every country and every structure has different rules. Everything has been checked against 2026 sources. This is not tax advice: always choose a structure together with a tax adviser who knows both countries.
First: every structure is different
Not all companies are equal. For tax purposes it makes a big difference whether you buy through:
- a Spanish company (usually a Sociedad Limitada, SL), which is established in Spain and pays corporate tax there;
- a foreign company without an establishment in Spain, such as a Belgian BV or NV, a Dutch BV or a British Ltd, which is taxed in Spain as a non-resident;
- a tax-transparent structure, such as a French SCI, where how Spain and your home country treat it must first be clarified legally.
On top of that, your own country decides how it taxes profits, private use and the shares. A structure that works for a Belgian business owner may be unfavourable for a Dutch or British buyer. So use this article to understand the Spanish side and to ask the right questions.
Buying through a company: what changes in Spain?
| Topic | Private | Through a company |
|---|---|---|
| Purchase tax, resale home | 7% ITP | 7% ITP, no difference |
| Purchase tax, new build | 10% VAT and 1.2% stamp duty | Same rates |
| Identification | Buyer's NIE | Spanish tax number (NIF) of the company and identification of the ultimate beneficial owners at the notary |
| Mortgage | In the buyer's name | In the company's name, often with a personal guarantee from the shareholder |
| Annual administration | Non-resident return or ordinary return | Bookkeeping, annual accounts and corporate tax return (Spanish SL) or non-resident return (foreign company) |
You set up a Spanish SL at a notary. Since 2022 the legal minimum capital is €1, but do budget for set-up costs, an accountant and annual filings. A foreign company needs a Spanish tax number (NIF) before it can buy. Read more about the normal buying costs in buying costs and buying a house in Spain.
Owning: which annual taxes?
- IBI and waste tax: the council levies it on the property, regardless of who owns it.
- Deemed income: according to the Spanish tax authority, the tax on deemed income of 1.1% or 2% of the cadastral value only applies to individuals who are non-resident. A foreign company does not pay it.
- Special 3% levy: a foreign company that owns Spanish property pays 3% of the cadastral value every year if it is established in a tax haven (a non-cooperative jurisdiction), except in the cases the law exempts. An ordinary company from Belgium, the Netherlands, France or the UK is not affected.
- Wealth tax: according to the Spanish tax authority's manual, non-residents are also taxable on unlisted shares in a company, Spanish or foreign, at least 50% of whose assets consist of Spanish property. So a company does not get around this tax. Also read tax on a second home.
Staying in the property yourself
This is where things go wrong most often. If, as a shareholder, you use a home owned by your company without paying a market rent, there may be tax consequences:
- In Spain: with a Spanish SL, the related-party rules apply. Transactions between the company and its shareholder must be valued at market value (article 18 of the corporate tax law).
- In your own country: in many countries, private use of a company-owned home is taxed as a benefit or as income of the shareholder or director. How that works differs by country.
If you mainly want to use the home yourself, buying privately is often simpler and cheaper. A company is better suited to an investment that you rent out.
Renting out through a company
- Spanish SL: the rental profit falls under corporate tax. The general rate is 25%. Small companies enjoy lower rates in 2026 (19% and 21% for micro-companies, 23% for SMEs), but a company that merely holds assets is excluded. By law, letting only counts as an economic activity if you employ at least one person full-time for it (article 5 of the corporate tax law).
- Foreign company without an establishment in Spain: it pays non-resident tax on the rent, 19% on net rent for a company from the EU or EEA, 24% on gross rent for other countries such as the UK.
- Holiday rental: the same Andalusian rules apply as for individuals: registration, owners' consent and guest registration. If housing decree RDL 29/2026 is ratified, 10% VAT will apply from 1 December 2026 to lets of 30 nights or fewer. Read renting out your property in Spain.
- Distributing profit: dividends from a Spanish SL to a foreign shareholder are in principle subject to Spanish withholding tax. Tax treaties and EU rules can reduce it.
Selling: the property or the shares?
You can sell the property itself, or the shares in the company that owns it.
- Selling the property: a Spanish SL pays corporate tax on the capital gain. A foreign company without an establishment pays 19% non-resident tax on the gain, and the buyer withholds 3% of the price as an advance payment, just as with an individual. The plusvalía municipal remains payable.
- Selling the shares: in principle the transfer of shares is exempt from VAT and transfer tax. The Spanish securities law (article 338 of Ley 6/2023, formerly article 314) makes an exception if the transfer is intended to avoid the tax on the property. That is presumed when the buyer acquires control of an unlisted company at least 50% Spanish property of whose assets are not used for an economic activity. The buyer then still pays transfer tax, in proportion to their stake. Shares received for property contributed to the company less than three years earlier are also covered.
So selling shares is not an automatic way to avoid the 7% ITP. Have the structure and the seller's tax in Spain and in their own country calculated in advance. Also read tax when selling as a non-resident.
What happens in your own country?
That differs by country and by structure, and we deliberately don't give a ready-made answer. A few principles we often come across in practice:
- Belgium: private use of a company-owned home by a director may be taxed as a benefit in kind, and the company must account correctly for the foreign income and costs.
- Netherlands: a BV that owns a holiday home for the shareholder's private use often leads to extra tax for the shareholder and is therefore rarely favourable for personal use.
- United Kingdom: a Ltd that makes a home available to a director can give rise to a taxable benefit, and profit you distribute is taxed in the shareholder's hands.
- France: an SCI is often tax-transparent in France. How Spain treats a French SCI must be checked case by case.
So never choose a structure based on the Spanish rules alone. A tax adviser in your own country and a Spanish tax adviser should look at it together.
When does a company make sense?
| Situation | Often simpler |
|---|---|
| Second home for personal use | Buy privately |
| Investment you rent out all year | A company can make sense, depending on your country and your plans |
| Several properties as a business activity | Company, possibly with staff in Spain |
| Your existing business has surplus funds | Have it calculated first: distributing and buying privately may work out better |
These are rules of thumb, not advice. The right choice depends on your income, your country, your estate planning and how long you want to keep the property.
How we help
We guide buyers who buy privately or through a company, and put you in touch early on with an independent Spanish tax adviser and lawyer. That way the structure is settled before you sign a reservation contract, not after.
Thinking of buying through a company? Tell us your plans and we'll put you in touch with an independent tax adviser who knows both countries.
Ask your questionSend us a WhatsAppRead also: buying a house in Spain, tax on a second home, renting out your property in Spain and our tax and law guide.
This article is part of our guide to tax and law for property in Spain: all the rules for buying, owning, renting out, selling and inheriting in one place, checked every month.
Frequently asked questions
Is buying through a company in Spain cheaper?
Not at purchase: the transfer tax (7% ITP) or the VAT on a new build is the same. A company can have advantages for letting, but brings paperwork and costs. For personal use, buying privately is often simpler.
Does a foreign company pay the tax on deemed income?
No. According to the Spanish tax authority, that tax only applies to non-resident individuals.
What is the special 3% levy for foreign companies?
An annual levy of 3% on the cadastral value of Spanish property, for companies from tax havens. Ordinary companies from Belgium, the Netherlands, France or the UK are not affected.
What rate does a Spanish SL that rents out homes pay?
The general corporate tax rate is 25%. A company that merely holds assets is not entitled to the reduced rates for small companies.
Can I sell the shares instead of the property to avoid transfer tax?
Not just like that. If the buyer acquires control of a company at least 50% of whose assets are Spanish property, tax avoidance is presumed and transfer tax is still due (article 338 of Ley 6/2023).
Do I pay wealth tax if my home is held in a company?
Possibly, yes. In Spain, non-residents are taxable on unlisted shares in a company at least 50% of whose assets are Spanish property.
Sources
- Agencia Tributaria, Renta imputada de inmueble urbano de uso propio (individuals only), sede.agenciatributaria.gob.es
- Agencia Tributaria, Manual práctico Patrimonio 2025, taxpayers by real obligation (shares in companies with at least 50% Spanish property)
- Real Decreto Legislativo 5/2004 (non-resident income tax law), special levy on property of non-resident entities (articles 40 to 45) and rates (article 25); summarised in the Guía Fiscal of fiscal-impuestos.com (CEF)
- Ley 27/2014 del Impuesto sobre Sociedades, articles 5 (economic activity in letting), 18 (related parties) and 29 (rates); Interforo Abogados, Tipos reducidos del impuesto de sociedades para pymes en 2026 (28 April 2026)
- Ley 6/2023 de los Mercados de Valores y de los Servicios de Inversión, article 338; Notarios y Registradores, Informe fiscal septiembre 2023: estado actual de las transmisiones de valores
- Ley 18/2022 de creación y crecimiento de empresas (SL minimum capital)
Written by the Imagine Marbella editorial team. Updated October 2026. This is general information, not tax or legal advice: always choose a structure together with a tax adviser in Spain and in your own country.
