Buying property in Spain through a company. Advantages and disadvantages for investors

Written by Anita Orłowska on 15.08.2025 - 7m reading

Written by Anita Orłowska on 08.08.2025 - 7m reading

Written by Anita Orłowska on 15.08.2025 - 7m reading

• Buying an apartment for a company in Spain – the most important advantages

• Disadvantages and challenges associated with purchasing real estate for a company

• Tax and legal obligations for transactions on behalf of a company in Spain

• How to buy property in Spain for a company step by step?

Although most transactions on the Spanish property market are carried out by individuals, there are also many companies on the buyer side. This solution is particularly popular among entrepreneurs who want to take advantage of depreciation, deduct costs or separate their business assets from their personal assets. Find out how to buy property in Spain as a company and what you need to prepare for, both in terms of tax and legal requirements.

Are you interested in investing in real estate in Spain and considering purchasing an apartment for your company? Learn about the characteristics of such a transaction, its advantages and disadvantages, and the step-by-step process.

Contents:

• Buying a house in Spain for a company – what you need to know

Buying an apartment for a company in Spain is an increasingly popular strategy among entrepreneurs and wealthy investors. In 2024, it accounted for as much as 15% of all transactions. How does it work? In this case, you do not purchase the property for private use (as a natural person), but as part of your business activity.

There are good reasons why buying a house in Spain for a company is so popular. One of the main reasons is, of course, the attractive market for luxury properties that meet the expectations of the most demanding investors. However, this is not the only reason, as buying a flat for a company is also a way to optimise taxes and increase legal security.

Buying a house in Spain as a company has tax benefits. These include:
 

• VAT deduction – the company can deduct 10% VAT (IVA) on purchases from the primary market if the property is to be used for commercial purposes (e.g. tourist rental). As in Poland, in Spain, in order to benefit from the deduction, the company must be registered as a VAT entity.
• Depreciation – an option available only when purchasing a property for a company in Spain. This allows the cost of the property to be spread over its entire useful life (in this case, approximately 3% per annum).
• Deduction of costs from company income – this refers, for example, to expenses related to the ongoing maintenance of the property, such as bills, cleaning staff salaries or community fees.
• Rental tax relief – this can be claimed by companies that own a larger number of properties and meet additional requirements.
   

Tax aspects are not everything. Buying a flat for a company in Spain also means greater legal security. First of all, the company's assets are clearly separated from personal assets. This is extremely important in the event of any debts or disputes, and thus protects the investor who owns the property and the company in Spain.

Added to this is the issue of inheritance and protection against conflicts related to the division of the estate. Buying a flat for a company also makes it easier to manage your property portfolio in Spain.

Buying a house in Spain as a company has tax benefits. These include:

• VAT deduction – the company can deduct 10% VAT (IVA) on purchases from the primary market if the property is to be used for commercial purposes (e.g. tourist rental). As in Poland, in Spain, in order to benefit from the deduction, the company must be registered as a VAT entity.
• Depreciation – an option available only when purchasing a property for a company in Spain. This allows the cost of the property to be spread over its entire useful life (in this case, approximately 3% per annum).
• Deduction of costs from company income – this refers, for example, to expenses related to the ongoing maintenance of the property, such as bills, cleaning staff salaries or community fees.
• Rental tax relief – this can be claimed by companies that own a larger number of properties and meet additional requirements.
  
  

Tax aspects are not everything. Buying a flat for a company in Spain also means greater legal security. First of all, the company's assets are clearly separated from personal assets. This is extremely important in the event of any debts or disputes, and thus protects the investor who owns the property and the company in Spain.

Added to this is the issue of inheritance and protection against conflicts related to the division of the estate. Buying a flat for a company also makes it easier to manage your property portfolio in Spain.

Buying a house in Spain as a company has tax benefits. These include:
 

• VAT deduction – the company can deduct 10% VAT (IVA) on purchases from the primary market if the property is to be used for commercial purposes (e.g. tourist rental). As in Poland, in Spain, in order to benefit from the deduction, the company must be registered as a VAT entity.
• Depreciation – an option available only when purchasing a property for a company in Spain. This allows the cost of the property to be spread over its entire useful life (in this case, approximately 3% per annum).
• Deduction of costs from company income – this refers, for example, to expenses related to the ongoing maintenance of the property, such as bills, cleaning staff salaries or community fees.
• Rental tax relief – this can be claimed by companies that own a larger number of properties and meet additional requirements.
   

Tax aspects are not everything. Buying a flat for a company in Spain also means greater legal security. First of all, the company's assets are clearly separated from personal assets. This is extremely important in the event of any debts or disputes, and thus protects the investor who owns the property and the company in Spain.

Added to this is the issue of inheritance and protection against conflicts related to the division of the estate. Buying a flat for a company also makes it easier to manage your property portfolio in Spain.

Although purchasing a house in Spain for a company has many advantages, when making a decision, it is also worth considering the potential disadvantages and challenges associated with the transaction. In this case, one of the biggest drawbacks is the complex formal procedures, which require the buyer to register a business in Spain and keep accounts. There are also higher initial costs, which include, among other things, notary fees and registration fees for commercial registers.

Additional tax obligations, resulting, for example, from the private use of the property by the owners of the company, are also important. Although this is legal, you must remember that an invoice must be issued for such a stay. If you want to live in an apartment or villa during your holiday, bear in mind that you will have to pay a 25% tax.

Buying an apartment for a company in Spain means that you will be subject to tax obligations. Both the purchase and ownership of real estate by a company in the Iberian Peninsula entails the payment of:
 

• VAT – applies to properties on the primary market. In the case of companies, 10% can be deducted if the company is a NIF-IVA entity. However, this does not apply to long-term rentals.
• Property transfer tax (ITP) – applies to the purchase of properties on the secondary market. The amount depends on the location – the rates are set independently by the local authorities. Entrepreneurs can convert ITP to VAT, but only in specific cases. Renuncia a la exención del IVA is possible when both the buyer and the seller are VAT payers and the property will be used for business purposes.
• Corporate income tax – Impuesto sobre Sociedades applies to all company income, including income from, for example, short-term rental of the purchased property.
• Tax on private use of real estate – this refers to situations where the owners of a company use it for private purposes. The tax is calculated based on market rates.
• Property tax and community fees – both these and the costs associated with maintaining the property can be deducted from the company's income in Spain.
   

For premium investors, it is worth considering not only setting up an independent company, i.e. a Sociedad Limitada – S.L., but also registering a branch of an existing company in Spain.

How to buy property in Spain for a company? First of all, it is a good idea to establish cooperation with a real estate agency, a lawyer and a tax advisor. This will ensure that the transaction is safe and without any surprises, and that all necessary formalities are completed.

To begin with, you need to prepare the formalities. This includes registering your business in Spain, paying the initial fees, obtaining a NIF number, i.e. a VAT number (Número de Identificación Fiscal), and gathering the necessary documents.

The next step is the property verification process, e.g. legal and tax analysis carried out by lawyers. After a positive outcome, the contract is signed and the transaction is finalised, i.e. the notarial deed is signed. At this stage, the buyer must also pay the necessary tax fees.

Read also: How to buy an apartment or house in Spain?

Knowing how to buy a house in Spain for a company, you can start preparing for your investment in the Iberian Peninsula. If you want professional support and advice, use the services of the Polish agency Elite World Estates. Thanks to them, you will not only gain access to the best premium properties. It is also a guarantee that the purchase of an apartment for a company in Spain will run smoothly and without any problems. Find out more!

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Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you! Please enter your contact details below and we will contact you as soon as possible.

Let us narrow down the search among the properties available through us, by contacting us and finding the best options for you. We are here to help you!
Please enter your contact details below and we will contact you as soon as possible.