Buying Property in Spain Through a Foreign Company: Complete Legal Guide 2026

Many foreign investors choose to acquire Spanish real estate through their existing company rather than in their personal name. Whether it is a UK Limited, a Dutch BV, a German GmbH, or a US LLC, buying through a corporate structure can offer significant fiscal advantages — but it also requires meticulous legal preparation that many buyers underestimate.

At Bufete Padilla we have handled hundreds of corporate property transactions on the Costa Blanca since 1976. This guide walks you through every step of the process in 2026.

Why Buy Through a Foreign Company?

The primary motivation is fiscal efficiency. When a non-resident company owns Spanish property, certain tax obligations that apply to individual non-resident owners do not apply in the same way:

• No annual IRNR (Impuesto sobre la Renta de No Residentes) on imputed income. Individual non-resident owners must file Modelo 210 each year and pay tax on 1.1–2% of the cadastral value, even if they never rent the property. A non-resident company holding property for its own corporate purposes is not automatically subject to this imputed income charge in the same manner.
• IBI (Impuesto sobre Bienes Inmuebles) remains payable regardless of ownership structure — this is a municipal tax on the property itself.
• Corporate tax planning flexibility — depending on the company's jurisdiction, the costs of maintenance, mortgage interest, and depreciation may be deductible against corporate profits.
• Succession planning — transferring shares in a company is generally simpler and less expensive than transferring Spanish real estate directly, potentially avoiding Spanish inheritance tax altogether.

Important caveat: Spain's anti-avoidance rules (Article 9 and 13 LIRPF, and the EU Anti-Tax Avoidance Directives) mean that the structure must have genuine economic substance. A shell company with no activity other than holding one property may be challenged by the Agencia Tributaria.

Step 1: Legalising the Corporate Documents

Before a foreign company can operate in Spain — including buying property — its founding documents must be properly legalised for use in the Spanish legal system. This involves three critical sub-steps:

a) Apostille (Hague Convention)

If the company is incorporated in a country that is party to the 1961 Hague Apostille Convention (UK, Netherlands, Germany, USA, Norway, etc.), the following documents must be apostilled in the country of origin:

• Certificate of Incorporation (or equivalent registration certificate)
• Memorandum & Articles of Association (or Statutes / Gesellschaftsvertrag)
• Certificate of Good Standing (or equivalent proof the company is active)
• Board Resolution authorising the property purchase and appointing the representative

Each document receives an apostille stamp from the designated competent authority (e.g., the Foreign, Commonwealth & Development Office in the UK, or the Rechtbank in the Netherlands).