• International Private Client & Tax Services

    Buying a Property in Spain

    Buying a property in Spain can be an exciting step whether you’re investing, relocating, or purchasing a holiday home. But to avoid costly surprises, it’s essential to get the right legal and tax advice from the start.

    Since 1998, Spanish non-resident tax rules have established specific obligations for anyone who owns property in Spain but lives abroad. Understanding how these taxes apply to your purchase will help you plan correctly and avoid unnecessary expenses.

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Taxes When Buying a Property in Spain

The taxes you’ll pay depend mainly on where the property is located and whether it’s new or resale:

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New-build property

If the home has never been occupied, you’ll pay 10% VAT (Impuesto sobre el Valor Añadido – IVA) on the purchase price, plus 1.5% Stamp Duty (Actos Jurídicos Documentados – AJD).
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Resale property

If the property has had previous owners, you’ll pay Transfer Tax (Impuesto sobre Transmisiones Patrimoniales – ITP). The general national rate is 7%, but some regions apply higher local rates depending on the property value.

These figures are indicative and may vary by region and personal circumstances. For an accurate estimate of your total property purchase costs in Spain, it’s always best to get personalised advice from a qualified professional.

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Buying Spanish Property Through a Company

Some buyers choose to purchase Spanish property through a company to optimise their tax position. While this can be an effective strategy, it also brings legal and tax implications that must be carefully reviewed.

Before taking this route, consider the following:

  • Setting up and maintaining international property structures can be expensive, so the tax benefits must justify the costs — typically worthwhile for properties valued over £1 million.
  • You must demonstrate control of the company, either directly or indirectly, for voting rights and board decisions.
  • If your company has owned a Spanish property for several years, ensure it complies fully with Spanish tax obligations to avoid being classed as aggressive tax planning.

If your property was purchased through a company before 2018, it’s strongly recommended to review the structure and ensure all tax filings are up to date. The Spanish Tax Authorities are increasingly reviewing old corporate ownership models that have not been reassessed in recent years.

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Legal and Tax Support from Del Canto Chambers

At Del Canto Chambers, we help individuals and companies navigate every stage of the Spanish property purchase process, ensuring full compliance and tax efficiency.

Understand your tax liabilities as a resident or non-resident

Calculate your property purchase costs

Review or restructure your company ownership model

Ensure compliance with Spanish tax law

Contact us for specialist advice before buying a property in Spain — and make your investment safe, compliant and cost-efficient.