How to Structure a Real Estate Investment in Spain | R E C
How to Structure a Real Estate Investment in Spain
If you’re planning to invest in Spanish real estate, the way you structure your investment will directly affect your taxes, responsibilities, and long-term return. At R E C, we guide international investors to choose the best legal and financial structure for their goals.
1. Buy as an individual vs. as a company
- 👤 Personal purchase: Easier, but less flexible if managing multiple assets or planning to rent.
- 🏢 Company purchase: Offers advantages for taxation, inheritance, or resale of portfolios.
2. Spanish vs foreign company
- 🇪🇸 A Spanish SL (Sociedad Limitada) allows easier bank financing and rental licenses.
- 🌍 Buying through a foreign holding company may offer international tax benefits, depending on your residence country.
3. Financing and mortgage structure
Spanish banks may finance up to 60–70% of the purchase price for non-residents. You can also bring private funds or create debt through intra-company loans (with proper legal advice).
4. Tax optimization
- ✅ Deduct rental expenses and amortization if structured correctly
- 🧾 VAT vs. Transfer Tax: depending on the asset type and legal entity
- 🧠 Planning matters: poor structure = unnecessary taxation
5. Joint investment or partnerships
If you are investing with others, consider a shareholders’ agreement or setting up a dedicated investment vehicle to define ownership and responsibilities clearly.
6. Inheritance and succession planning
Spain applies its own inheritance laws. Creating a Spanish will or buying via a company can simplify asset transfer to heirs.
📘 Related guides
📞 Want to structure your investment smartly?
R E C connects you with legal, tax, and financing experts to set up your property purchase in Spain the right way.