How you buy and hold Spanish property directly affects your tax and your return. Several structures are possible, each with consequences. The right one depends on your objectives, the number of properties and the scale of the investment.
Buying in your own name #
Most buyers start here. You pay non-resident income tax on rental income, possibly wealth tax, and tax on the gain when you sell.
This suits a single property, limited letting, or simply where straightforwardness matters to you. It is the least complex structure and for most buyers it is the right one.
Remember that the €700,000 wealth tax allowance is per person, so joint ownership between a couple doubles it. That alone is a structuring decision worth making deliberately.
Buying through a Spanish company #
A Spanish SL is used for larger investments. Profit is taxed at corporation tax of around 25 per cent, costs are deductible inside the company, and you take on additional administration and obligations.
That deductibility point matters more for a British owner than it would for an EU one. Personally, you cannot deduct costs at all against rental income. Inside a company, you can. On a heavily geared property with real running costs, that changes the arithmetic in a way it does not for an EU owner.
It suits multiple properties, higher rental income, or active investing or development. It also brings genuine complexity and annual cost.
Buying through a UK company #
Some investors use a company outside Spain, such as a UK limited company. That means dealing with both UK and Spanish rules, applying the double taxation treaty, and paying closer attention to how the structure is set up.
The important thing to know: the tax advantages are not automatic. A structure that works for one investor produces a worse outcome for another, and a badly constructed one produces problems in two jurisdictions at once.
Investing together #
Joint investments use various arrangements: joint purchase, a partnership, or a company.
What matters is clear agreement on ownership, on how income and costs are split, and on what happens on sale or when somebody wants out. Without that in writing, disputes follow quickly and they are expensive to resolve across borders.
Making the choice #
The right structure follows from the number of properties, expected income, your long-term strategy and your own tax position on both sides.
For one property used partly by you, personal ownership is almost always correct. The threshold at which a company starts to make sense is higher than most people assume.
In short #
Structure follows strategy, not the other way round. Decide what you are building first.
Ownership structures have significant tax consequences in both countries and cannot be assessed generically. Have your own position modelled by a qualified adviser before deciding.
Last reviewed 2026-08-24
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