Buying Property in Spain Through a Company (2026)
Buying property in Spain through a company is a question we hear often from British buyers, especially those who already run a UK limited company. On paper it looks tidy: the company buys, the company pays, and the costs sit on the company's books. In practice, two tax systems meet, and a structure that works well in the UK can become expensive in Spain.
There is also a difference in how the purchase itself works. In the UK, your conveyancing solicitor runs the searches and checks for you. In Spain, nobody does that by default. This article explains when a company makes sense for a property in Mallorca or elsewhere in Spain, which risks British buyers tend to miss, and what to settle before you sign.
In this article you will find: how buying in Spain differs from the UK, when a company makes sense, the hidden risks and costs, UK limited company versus Spanish SL, the tax treaty, inheritance tax and Brexit points British buyers should know, and answers to the most common questions.
How buying in Spain differs from the UK
No conveyancing by default
In England and Wales, your conveyancer acts for you: they run the searches, raise enquiries and check title before exchange. Spain has no equivalent built into the process. The checks still need doing, but it is up to the buyer to arrange them.
The notary is not your solicitor
The Spanish notario confirms identities, checks that the people signing have authority to do so and makes sure the deed is formally valid. The notary is neutral and acts for neither side. Whether a company is the right vehicle for you, and what tax follows from it, is outside the notary's role.
Who fills the gap
A Spanish abogado acting only for you covers that ground, including the company structure. We explain why in Do I Need a Lawyer to Buy Property in Spain?.
When buying property in Spain through a company makes sense
The deciding factor is not the legal form but how you plan to use the property. As a rule of thumb, the more personal the use, the less likely a company is worth it.
A holiday home for you and your family
For a home you will use yourselves, buying in your own name is usually simpler and cheaper. As a non-resident owner you pay an annual Spanish income tax on the property even if you never rent it out. We cover this in Buying Property in Spain as a Non-Resident.
Letting as a genuine business
If you plan to buy several properties or let on a professional basis, a company can bring contracts, accounts and costs under one roof. Holiday letting in Mallorca is tightly regulated, so check whether the property holds a valid rental licence before you buy.
Buying with partners
When several people invest together, shares in a company are easier to divide and transfer than joint ownership of a property. A shareholders' agreement sets out who decides, who pays and how a partner can exit.
Passing it on to the next generation
Shares can be split between heirs without dividing the property itself. That can prevent family disputes, but it does not replace estate planning and does not make inheritance tax disappear.
Risks and costs British buyers tend to miss
Most problems do not show up on completion day. They appear years later, when you use the property, sell it or pass it on.
Purchase taxes stay the same
A company pays the same purchase taxes as an individual: transfer tax (ITP) on a resale property, or VAT and stamp duty (AJD) on a new build.
Using the company's property yourself
If a director or shareholder of a UK company uses the company's property without paying a market rent, HMRC can treat that use as a taxable benefit or a distribution. Spain also values dealings between a company and its shareholders at market value. The same holiday weeks can end up being looked at in both countries.
The annual cost of the structure
A company costs money even when the property sits empty:
- Accounts and annual filings, in Spain for an SL and in both countries for a UK company.
- Spanish tax returns for the company.
- A bank account, advisers in both countries and proof of the beneficial owner.
Currency on top
If the company is funded in sterling but buys and pays its Spanish costs in euros, exchange-rate movements run through every transfer and every set of accounts.
Selling or unwinding the structure
Taking the property out of the company later can trigger tax for both the company and the shareholder. Selling the shares is not automatically cheaper either: Spanish law provides that, in certain cases, selling shares in a company whose assets are mainly property is taxed as if the property itself were sold.
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UK limited company or Spanish SL?
Many buyers want to use the company they already own. That is possible, but not always the best choice.
Buying through your UK limited company
The company needs a Spanish tax number (NIF) and must produce its incorporation and authority documents with an apostille and a sworn translation. Rental income from the property is taxed in Spain, and the company takes on Spanish filing obligations. A special annual levy of 3% of the cadastral value mainly targets companies based in non-cooperative jurisdictions. A UK company is not usually caught, but this should be checked case by case.
Setting up a Spanish SL
The sociedad limitada is the Spanish equivalent of a private limited company. It is incorporated before a Spanish notary, keeps its books in Spain and pays Spanish corporate tax. Its shareholders and directors normally need an NIE.
At a glance
| Criterion | Individual | UK limited company | Spanish SL |
|---|---|---|---|
| Purchase taxes | ITP, or VAT + AJD | The same | The same |
| Personal use | Straightforward | Benefit in kind risk in the UK | Valued at market rate in Spain |
| Running costs | Low | High, two tax systems | Medium, Spanish accounts |
| Several investors | Joint ownership, less flexible | Shares under UK law | Shares under Spanish law |
| Documents to buy | NIE, power of attorney if remote | NIF, apostille, translations | Incorporation deed, NIF, NIEs |
You never need to fly over
The company signs through its director. If the director cannot travel to Mallorca, they can grant a power of attorney before a UK notary public, with an apostille and translation, or at a Spanish consulate in the UK. Have it reviewed before signing: an incomplete power of attorney can delay completion at the notary.
What British buyers should know
Three points come up for British buyers that general Spanish guides rarely cover.
The UK-Spain tax treaty
Spain can tax income from a Spanish property. How the UK treats the same income depends on the UK-Spain double taxation agreement and on whether you hold the property personally, through a UK company or through an SL. Work this out before you buy, not after.
Inheritance tax without a treaty
There is no inheritance tax treaty between the UK and Spain. Spain taxes assets located in Spain, while UK inheritance tax can reach worldwide assets. Since April 2025, that UK exposure depends on your long-term UK residence rather than your domicile. Whether your heirs inherit a property or company shares changes the outcome in both countries.
Brexit, ownership and residency
Since Brexit, UK nationals are third-country nationals in Spain. Owning a property, whether personally or through a company, does not give you the right to live here: without residency, stays are limited to 90 days in any 180-day period. Spain stopped issuing new golden visas in April 2025, although existing holders can still renew theirs.
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Frequently asked questions
- Can my UK limited company buy property in Spain?
- Yes. It needs a Spanish tax number (NIF), apostilled and translated company documents, and proof of its beneficial owner.
- Does buying property in Spain through a company save tax on the purchase?
- No. A company pays the same purchase taxes as an individual: transfer tax on a resale property, or VAT and stamp duty on a new build.
- Can I stay in a property my company owns?
- Only with care. Without a market rent, HMRC may treat your use as a taxable benefit, and Spain also values the use at market rate.
- Does the Spanish notary act for me like a conveyancing solicitor?
- No. The notary is neutral, checks the deed and the signatories' authority, and does not advise you on structure or tax.
- Does owning through a company help with the 90/180-day rule?
- No. Property ownership, personal or corporate, does not grant residency. Without a residence permit, UK nationals can stay 90 days in any 180-day period.
- Do I need to travel to Spain to sign?
- No. The company's director can grant a power of attorney before a UK notary public, with an apostille, or at a Spanish consulate.
How KJ Can Help You
Structure first, signature second
Buying property in Spain through a company can be the right call or a cost you carry in two countries for years. The difference lies in your plans for the property, your tax residence and your estate planning, settled before you buy and as part of the full process we describe in How to Buy Property in Mallorca as a Foreigner: Complete Guide.
KJ Legal Plus advises you in English, works out the right structure alongside your UK accountant and stays with you through to signing at the notary. You never need to fly over.
Is a company right for your purchase? Request a consultation