The process of purchasing a property in Spain

Nota simple informativa

The pre-agreement

The mortgage

The closing

Taxes

Property Registry

FAQs

If I'm buying a spanish property can I save on taxes by creating a company?

In some cases, yes.

Example:
Stan is a resident of Spain and earns a 100,000 salary from outside Spain. Stan has two choices:

Pay personal income tax in Spain (if he's paying income tax elsewhere then this can be reduced). Stan is in the 42% income bracket, so he will pay around 40,000 euros.

Establish an SL, and the SL pays him. Stan's company pays a corporate tax of 30% (after the first three years, this rises to 35%). However, corporate tax deductions are extensive in Spain. Stan deducts housing, car, and food for 50,000 euros. 30% of the remaining 50,000 euros is 15,000 euros, so the savings are well worth the costs of SL creation and accounting.

With an SL, there are more options: money that Stan doesn't plan to spend in the near future can be put in the company reserves, making it nontaxable.

Faqs

How can I find out the market price of a spanish property?

The seller wants the declared price to be less than what I'm actually going to pay. Should I do this?

If I'm buying a spanish property can I save on taxes by creating a company?

What information should I get from my spanish property agent?

Are spanish property agencies regulated?

When I sell my house in spain, are there any required inspections?

What is the trend in property prices in Spain?

The content on this page was kindly provided by Strong Abogados. If you need legal advice or help with property, employment or company law in Spain please visit their web site at www.strongabogados.com

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