Why invest in Spanish real estate via a BV, SL or privately?
Investing in Spanish real estate? Discover which ownership structure fits your goals
Whether you’re dreaming of a holiday home on the Costa Blanca or planning a strategic property investment: how you buy real estate in Spain matters. In this first blog of our 3-part series, we explore the legal and tax implications of purchasing property through a Dutch BV, a Spanish SL, or in your own name. Legal expert Carlos Savenije Martin explains what you absolutely need to know before signing anything.
1. buying privately: ideal for a holiday home
Many buyers choose to purchase their first Spanish property privately. It’s simple, straightforward, and works well if you’re buying just one home for non-business use.
benefits:
- fewer setup costs and legal complexities
- no need to create a Spanish SL
- user-friendly for family use or occasional rental
keep in mind:
- annual Spanish income tax is due on rental value
- no VAT deduction for renovation costs
- inheritance tax applies to heirs
💡 Tip: buying privately is often best if the property is mainly for personal holidays or occasional use by family and friends.
2. buying via a Dutch BV: smart use of business assets
Do you have available capital in a Dutch BV or holding? Then buying through your BV can be an efficient strategy.
Benefits:
- transfer funds without Dutch dividend tax
- purchase can be arranged via power of attorney; no translation of statutes needed
- no high Spanish startup costs
Keep in mind:
- personal use of the property requires a formal rental contract between you and the BV
- if used only privately, extra tax rules apply
💡 Example: a business owner with €300,000 in their BV can invest in a Spanish apartment without paying private income tax upfront.
3. setting up a Spanish SL: for the property entrepreneur
Planning to buy, renovate, rent or resell multiple properties? Then setting up a Spanish SL (Sociedad Limitada) may be your best move.
Benefits:
- tax-efficient for business activity
- VAT on renovations may be deductible (if properly structured)
- scalable structure for a growing portfolio
Keep in mind:
- VAT deduction only applies if offering hotel-like services (reception, cleaning, etc.)
- renovations for private use are not VAT refundable
- higher setup costs and administrative requirements
💡 Pro tip: work with a legal and tax advisor to structure your SL properly and avoid costly mistakes.
What’s the right fit for you?
Private, BV, or SL – the best choice depends on your goals, available funds, and long-term vision. Always seek expert advice to avoid tax pitfalls.
🎧 Curious to hear more real-world insights and common mistakes? Listen to this episode of the Verhome Podcast with Carlos Savenije Martin:
Want to explore more? Read our related articles here.
Ready to explore your real estate plans in spain?
Whether you’re just starting your journey or already looking at properties, we’re here to guide you with expert advice, local insight, and a personal approach.
📅 Book your free introductory call with Verhome Group using the calendar below.
We look forward to getting to know you and helping you make your Spanish property dream a reality.
