Property Investment

Property Investment in Spain

The legal and local expertise you need to succeed
Property investment is our main specialty, and property developers, property owners and investors form our largest client base.
We can support you during all phases of property development and transformation projects from idea to finalisation. From planning, regulations and building to finalisation and sales - all these processes involve both legal and strategic issues that need to be dealt with. Our experience and competence cover both commercial properties and homes.
Our vast experience with helping foreign investors in Spain enables us to quickly identify how to help you most efficiently and effectively. Likewise, our extensive knowledge of the property industry and the various stakeholders contributing to development- and building projects, as well as property transactions, ensures that your property investments succeed in the Spanish market.
We know what our clients expect when it comes to quality and professional services, and our exceptional team allows us to meet their needs.

Property Tax in Spain

If you are purchasing a property in Spain you need specialist legal and tax advice to ensure a smooth and cost-effective transaction. In 1998, the Spanish non-resident income tax law introduced a tax liability on property in Spain owned by non-residents.

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    Purchasing Property in Spain

    If you are buying a residential property in Spain the amount of tax you will pay will depend on where you are buying and whether it is a new or resale property:
    • If you purchase a new build property, which has never previously been occupied, you need to pay the equivalent of VAT (Impuesto sobre el Valor Añadido – IVA – in Spanish) which is 10% of the price, and Stamp Duty, 1.5% Legal Documentation Tax (Actos JurídicosDocumentados – AJD – in Spanish).
    • If you’re buying a resale property that has previously been occupied, you need to pay transfer tax (Impuesto sobre Transmisiones Patrimoniales – ITP – in Spanish) which is calculated on a sliding scale depending on the purchase price. The national rule of ITP is 7%, but many of the autonomous regions have applied higher local rates.

    Get in touch for an accurate estimate on your Spanish property taxes

    Buying Spanish Property Through a Company

    To mitigate their tax liabilities, some people buy their Spanish Property through a company. Whilst this can be effective it obviously has tax and legal implications that need to be considered. The most suitable solution will depend on the particular circumstances but some considerations include:
    • International property structures are not cheap to set up and maintain, so the potential savings in terms of tax must be substantial if they are to be financially viable. If a property is worth £1m or more then this may be a good route to consider.
    • You must be able to demonstrate a controlling stake in the company e.g. direct or indirect control over the voting rights and the power to name/remove the majority of board members.
    • If a foreign property has been owned through a limited company or other corporate structure, which has conducted basic tax-planning for a number of years.
    • If the company’s tax obligations have not been complied with, might the structure fall within the definition of aggressive tax planning?
    If you are considering purchasing a Spanish property through a company it is essential that tax and legal professionals should review the structures used to buy property to ensure compliance.
    Unfortunately, many Spanish property owners who created corporate structures to purchase their property years previously and have given them little consideration since. The Spanish tax authorities are aware of this and if a company was created before 2018 and the tax position has not been assessed recently, they may investigate.
    Buy or Sell
    Are you thinking of buying or selling a home in Spain? We can help you
    With legal expertise by our experienced lawyers, you can trust that the entire purchase process will run smoothly and follow procedure. We can assist in purchase- and sales processes across the Spain-area, along the southern Spanish coast, on Ibiza and on Mallorca.
    Let the experts navigate the process for you
    Due to the many differences between the purchase processes in England and in Spain, buying a home in Spain can be challenging. Without any professional help you risk misunderstanding the legal system, that the quality fails your expectations or that the contract is not legally binding.
    Our lawyers have vast and long experience in property law in Spain, and are here to make you feel at ease and taken care of. We can help you in English or Spanish.
    The most common challenges in purchase processes in Spain
    • Spain has less regulations concerning estate agents authorisations, economic responsibility or insurances. They do not have formal viewings.
    • The comprehensive quality assurance process providing an overview over the property ́s legal and economic status – including necessary background checks and documents – is different.
    • The approach depends on whether you are buying a newly built apartment or a house, a home under construction or a second-hand property.
    • All contracts are written in Spanish and follow Spanish legislation.
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    Help in Spain with efficiency

    We can assist you in person in London and take care of everything from our offices in Spain. With your permission we can both sign contracts and other documents on your behalf. In that way, you do not have to travel to Spain to do it yourself, saving you both money and time. At the same time, you will get the same efficiency and close follow-up as you would expect in London, and in London
    Let us ensure a smooth running of legal and economic processes, and spend your energy on planning your new home instead!

    Buying a home under construction

    If the home you are buying is under construction you have to make sure you know the commitments the developer has to you as the buyer. This involves the process from the contract content to after the home is finished.

    Help with legal purchase contract

    Going into a purchase agreement involves many different elements. We know for a fact that buyers often are not aware of their rights, or what to look out for before signing housing deed. Ask us for advice on what you need to consider in order to avoid those legal and financial pitfalls.
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