Some buyers purchase in a company name for liability, succession or business reasons — and structuring and running company purchases is one of the House of Mojo’s specialties, handled in-house by our legal and finance teams together. Here is what Spanish law requires — and the honest trade-offs — before you choose a structure.
What are your three ownership options?
| Structure | Typical use case | Key Implications |
| Private ownership | Holiday home, personal use, most buyers | Simplest; personal taxes (Modelo 210); inheritance via testament |
| Spanish SL company | Rental business, multiple properties, developers | Spanish accounting & annual filings; corporate tax regime |
| Foreign company | Existing corporate wealth structures | Needs Spanish CIF + translations; scrutiny on substance |
There is no universally “smarter” option. A structure that saves tax in one situation creates double administration in another. Tax outcomes depend on the buyer’s individual circumstances and home-country tax rules. What matters is matching the structure to your actual plans — and pricing in the running costs honestly.
What does a Spanish SL setup involve?
If an SL (sociedad limitada) is the right vehicle, Mojo’s Legal Department provides complete assistance: name certificate, capital deposit, constitution deed before a notary, registration at the Mercantile Registry, and tax registrations.
- Constitution of a Spanish SL: 875 € (excluding 21% IVA and third-party costs such as notary and registry)
- Timeline: typically 2–4 weeks to a fully operating company
Once the company exists, it has ongoing obligations regardless of activity — bookkeeping, annual accounts and tax returns. Mojo’s Finance Department’s bookkeeping package handles all of it; see How Does Buying Through a Spanish Company Work Financially?
What if your existing foreign company buys the property?
A non-Spanish company can buy Costa del Sol property — but it must first exist for Spanish law:
- CIF number (Spanish tax ID for the company): 180 €
- Official translation of company documents (deeds, registry extracts, representation powers): from 400 €, depending on language and length
- Company power of attorney so your lawyer can act for the company: 400 € signed locally, 600 € internationally
(All prices excluding 21% IVA.) Expect the bank’s compliance department to ask for full ownership documentation — anti-money-laundering checks on corporate buyers are strict, and clean paperwork prepared in advance is the difference between a smooth completion and weeks of delay.
When does a company structure make sense — and when not?
It can make sense when: the property is genuinely a rental or development business; several unrelated investors co-own; your home-country situation favours corporate holding; or a portfolio is being built. It rarely makes sense when: the property is simply your holiday home.
Spain attaches imputed income rules to company-owned homes used by their owners, annual accounting costs are around 1.278 € per year (see the company finance guide), and companies from tax havens face a punitive special levy. The “buy in a company and save tax” shortcut sold in some forums usually costs more than it saves. The honest answer requires looking at your numbers.
As part of the House of Mojo, our legal and finance teams — together with our CEO, Per Mønsted — review structure questions jointly, giving you one coordinated recommendation instead of two contradicting ones.
Related Guides
- How Does Buying Through a Spanish Company Work Financially?
- Do You Need a Power of Attorney to Buy in Spain?
- Legal Department