How to Own Property in Spain in 2026: Individual, Joint, Corporate and Trust Structures Compared

Five legal structures can hold Spanish property: individual title, joint copropiedad, a Spanish SL, a foreign company, or a common-law trust. Each trades simplicity against liability, succession and tax. This 2026 comparison breaks down all five across six dimensions, adds the Beckham Law revision and the incoming EU AMLR compliance burden, and includes a worked cost-comparison table for a EUR 1m Costa del Sol villa, so you can choose the structure that fits your purchase before you sign at the notary.

What are the five ways to own property in Spain?

The five ownership structures available to a foreign buyer are individual title, joint ownership (copropiedad) under Codigo Civil articles 392 to 406, a Spanish sociedad limitada, a foreign company, or a common-law trust. Individual title is the default: one name on the deed, one taxpayer. Joint ownership splits an undivided share pro indiviso among two or more people. A Spanish SL is a limited company that buys and holds the property as a corporate asset. A foreign company is any non-Spanish entity that acquires Spanish real estate directly. A trust is an Anglo-Saxon equitable structure whose recognition in Spain is limited.

The distinction matters because Spain taxes each structure differently. Individual and joint owners pay the Non-Resident Income Tax (IRNR) on rental income at 19% for EU/EEA residents or 24% for non-EU, confirmed on the Agencia Tributaria’s own rates page, while a Spanish SL pays corporate income tax at the standard 25% rate under Article 29.1 of Ley 27/2014. A non-resident entity faces an additional 3% annual special tax on cadastral value. Spain has not signed or ratified the 1985 Hague Convention on the Law Applicable to Trusts, so a trust holding is usually looked through to the settlor or beneficiaries.

How does individual ownership work in Spain?

Individual ownership means one person’s name appears on the escritura publica (the notarial deed) and the Land Registry entry. It is the simplest and cheapest structure, with no corporate filings, no annual accounts and no separate tax return beyond the Modelo 210 non-resident tax that all non-resident property owners must file. The buyer pays ITP at 7% on a resale in Andalusia, or 10% IVA plus approximately 1.2% AJD on a new build, bringing total acquisition costs to around 12 to 15% of the purchase price including notary, registry and legal fees.

The trade-off is liability and succession. An individual owner’s entire personal estate stands behind any claim relating to the property, whether a tenant dispute, a construction defect or a tax assessment. On death, Spanish forced heirship rules apply to Spanish-situs assets: under Codigo Civil article 807, legitimate descendants or ascendants have a reserved share (legitima) that the owner cannot freely dispose of. For a non-resident whose national law governs succession under Article 9.1 of the Civil Code, an EU Succession Regulation election (Brussels IV) may help, but the structure of ownership still determines how the property passes. A Spanish will, as we explain in our guide to Spanish wills for property owners, is strongly advisable.

The 2026 Beckham Law revision strengthens the case for individual ownership if you are a qualifying expat. Article 93 of the Ley 35/2006 IRPF, modified by the Third Final Provision of Ley 28/2022 with effect from 1 January 2023, lets new tax residents pay a flat 24% IRNR rate on Spanish employment income up to EUR 600,000 instead of progressive IRPF rates reaching 47%. The Agencia Tributaria confirms the 24% withholding rate on its special regime page. For a relocating professional buying a single property, the lower personal income tax burden under the Beckham regime removes one of the main reasons to route the purchase through an SL.

What is joint ownership (copropiedad) under Spanish law?

Joint ownership, or copropiedad, is governed by Codigo Civil articles 392 to 406. Article 392 defines it: there is a community when the ownership of a thing or a right belongs pro indiviso to several persons. Each co-owner holds an abstract, undivided share (a percentage, not a physical portion of the property). The default rules give every co-owner the right to use the whole property, to sell or mortgage their share independently, and to demand partition at any time, unless a contractual agreement says otherwise.

The retracto de comuneros, a statutory right of first refusal under article 392 and the following provisions, lets co-owners reclaim a share sold to an outsider at the sale price. This protects co-investors from ending up in a community with a stranger. For tax, each co-owner is treated as an individual taxpayer: each files Modelo 210 separately and is assessed independently for IRNR, wealth tax and inheritance. Buying with a spouse or partner through copropiedad does not merge your tax identities, unlike in some common-law systems. Our dedicated joint ownership guide covers the partition rules, shareholder agreements and the proindiviso regime in detail.

How does a Spanish SL hold property?

A Spanish sociedad limitada is a private limited company with its own legal personality. It can acquire property in its own name, register it at the Land Registry as a corporate asset, and rent it out. The company pays Impuesto sobre Sociedades at the standard rate of 25% under Article 29.1 of Ley 27/2014, confirmed on the Agencia Tributaria’s 2026 tax rate table. Newly incorporated SLs may apply a reduced rate of 15% for the first two profitable years, which can lower the early cost. The Crea y Crece Law (Ley 18/2022) reduced the minimum share capital to EUR 1, though banks lending to a property-holding SL will require personal guarantees and realistic capitalisation.

The liability shield is the main draw. The owner’s exposure is capped at the share capital, which can be as low as EUR 1 under the 2022 reform. The cost is administrative: annual accounts, corporate tax returns, shareholder meetings and a registered office, typically running EUR 1,500 to EUR 3,000 per year. Transferring the property out of the SL later triggers ITP or IVA on the asset. Transferring the SL’s shares is normally exempt from ITP and IVA, but a share-deal anti-avoidance rule bites when at least 50% of the company’s assets consist of Spanish real estate not used for a business activity and the buyer acquires or increases control, in which case ITP or IVA applies to the underlying property value. Our SL property buying guide covers incorporation, capital thresholds and the running costs.

What about a foreign company holding Spanish property?

A non-resident company, whether a UK Ltd, a US LLC or a Luxembourg SOPARFI, can own Spanish property directly. The same acquisition taxes apply (ITP or IVA), but the ongoing tax treatment differs. The entity pays IRNR on any Spanish rental income at 19% if EU/EEA-resident or 24% if non-EU, with the same gross-income limitation as individuals. Crucially, entities resident in a non-cooperative jurisdiction or tax haven that own Spanish real estate face a special annual levy of 3% of the property’s cadastral value, filed on Form 213 by the end of January each year, under Chapter VI of the IRNR law. The Agencia Tributaria confirms this on its official guidance page.

An exemption from the 3% levy applies where the entity carries out genuine economic operations in Spain on a continuous or habitual basis, beyond the simple ownership or leasing of the property. A passive holding company that only collects rent and sits on the asset does not qualify. For non-resident owners who want corporate liability protection without the Spanish SL’s accounting burden, a foreign company can work, but the 3% special tax (on top of IRNR and IBI) often makes it more expensive than a Spanish SL, which is exempt from the levy as a domestic resident entity.

Can a trust hold property in Spain?

Spain has not signed or ratified the 1985 Hague Convention on the Law Applicable to Trusts and on their Recognition, confirmed in the HCCH status table, which lists 14 Contracting Parties with Spain absent. Spanish law has no domestic trust framework. The practical consequence is that a foreign trust holding Spanish property is typically looked through by the Agencia Tributaria: the settlor or the beneficiaries are treated as the direct owners for tax purposes, and the trust itself does not appear on the Land Registry as a separate legal owner.

For succession, the outcome is uncertain. Spanish case law since the Supreme Tribunal decision of 2008 has shown limited acceptance of foreign trusts where a Spanish settlor established one abroad, but the default position remains that Spain does not recognise the trust as a distinct legal entity. Forced heirship rules under the Civil Code can override trust distribution wishes, and the dual-will approach (a Spanish will for Spanish assets, a home-country will for everything else) is a safer planning tool. Our inheritance planning guide covers how to structure succession for Spanish property without relying on a trust, and our forced heirs guide explains the legitima reservation in detail.

How will the EU AMLR change corporate ownership from 2027?

The EU Anti-Money Laundering Regulation (AMLR, Regulation 2024/1624), which applies from 10 July 2027, designates real estate agents as obliged entities and requires them to verify the identity of both parties to a transaction and their beneficial owners before any funds or property are transferred. For corporate ownership structures (SL, foreign company, trust), this means the notary, the real estate agent and the bank will all trace ownership back to the natural person behind the corporate vehicle. The EUR 10,000 cash payment limit under the AMLR also removes the possibility of using cash deposits to obscure corporate ownership.

The practical effect for a buyer considering an SL or foreign company structure is a higher compliance burden. Beneficial ownership declarations, already required under Spain’s Ley 10/2010 transposition of earlier AML directives, will face stricter verification and cross-border information sharing through the EU’s central beneficial ownership registers. A corporate structure that was once a way to add a layer of privacy between the property and the public registry will offer less anonymity after July 2027. This does not change the tax treatment, but it does mean the corporate route’s paperwork cost rises further, strengthening the default case for individual or joint ownership where the structure is simple.

How do the five structures compare on tax, liability and succession?

The table below sets out the key differences across six dimensions for a foreign buyer. The annual holding tax figures assume the property is rented; an empty property triggers the imputed income tax (1.1% or 2% of cadastral value at the IRNR rate) for individuals, and the 3% special levy for non-resident entities.

Dimension	Individual	Joint (copropiedad)	Spanish SL	Foreign company	Trust
Acquisition tax	7% ITP or 10% IVA + AJD	Same, split per share	Same, paid by SL	Same, paid by entity	N/A (trust not recognised)
Annual income tax	19% EU / 24% non-EU on rental	Same, per co-owner	25% IS (15% first two years)	19% EU / 24% non-EU IRNR	Looked through to settlor
Additional annual levy	Imputed income if empty	Same, per share	None	3% cadastral value (Form 213)	N/A
Liability	Unlimited personal	Unlimited, joint	Capped at share capital	Capped at share capital	Uncertain
Succession	Forced heirship applies	Per co-owner share	Share transfer or liquidation	Share transfer	Not recognised
Transfer to a new owner	Re-triggers ITP/IVA	Re-triggers ITP/IVA	Share deal exempt unless anti-avoidance	Share deal; rules vary	N/A
AMLR 2027 compliance	Minimal (individual KYC)	Minimal (each co-owner)	Beneficial ownership trace	Beneficial ownership trace	Looked through

Which structure is best for a EUR 1m villa purchase?

Consider a EUR 1,000,000 resale villa in Marbella. The cost comparison table below shows the acquisition, annual holding and exit costs for each structure, based on 2026 tax rates.

Cost item	Individual	Joint (50/50)	Spanish SL	Foreign company	Trust
Acquisition tax (7% ITP)	EUR 70,000	EUR 35,000 each	EUR 70,000	EUR 70,000	N/A
Setup cost	EUR 0	EUR 0	EUR 1,500 to EUR 3,000	EUR 2,000 to EUR 5,000	Varies
Annual admin	EUR 300 to EUR 600	EUR 300 to EUR 600 each	EUR 1,500 to EUR 3,000	EUR 2,000 to EUR 4,000	Varies
Annual rental tax (EUR 40k rent)	19% EU / 24% non-EU	Same, per share	25% IS (15% yr 1-2)	19% EU / 24% non-EU	Looked through
3% special levy	None	None	None	EUR 600 (if cadastral EUR 20k)	N/A
CGT on sale (EUR 300k gain)	19% (all non-residents)	Same, per share	25% IS + 19% dividend	19% (all non-residents)	Looked through
Succession cost	Inheritance tax (regional)	Per co-owner share	Share transfer or liquidation	Share transfer	Not recognised

Under individual ownership, the buyer pays 7% ITP (EUR 70,000) plus notary, registry and legal fees, bringing total acquisition cost to approximately EUR 1,120,000 to EUR 1,150,000. Annual Modelo 210 on imputed income runs to a few hundred euros when empty; rental income is taxed at 19% (EU/EEA) or 24% (non-EU). On sale, non-resident CGT applies at 19% for all non-residents with a 3% buyer retention via Modelo 211.

Under a Spanish SL, the company pays the same 7% ITP to acquire the villa, plus incorporation and accounting costs of roughly EUR 1,500 to EUR 3,000 per year. Rental profit is taxed at 25% corporate tax (or 15% in the first two profitable years). On a later sale, the company pays 25% IS on the gain, and distributing the net proceeds as a dividend to a non-resident shareholder triggers a 19% withholding on the dividend for all non-residents, creating a double layer of tax that can make the SL more expensive than individual ownership for a single property. The SL comes into its own when you hold multiple properties, want liability isolation or plan to share ownership among investors with transferable shares.

Joint ownership splits the EUR 1m villa into, say, two 50% shares. Each co-owner files independently, pays their own ITP half, and can sell or mortgage their share. The retracto de comuneros gives the other co-owner a right of first refusal on a sale to a third party, which protects co-investors but adds a procedural step to any exit. For couples or family co-buyers, copropiedad is often the most cost-effective middle ground.

What annual holding taxes apply to each structure?

Every non-resident property owner, regardless of structure, faces annual holding taxes. Our non-resident property tax guide covers the full breakdown. For an individual or joint owner, the key obligations are IBI (the local council tax based on cadastral value, typically 0.4% to 0.7%), Modelo 210 on rental income at 19% or 24%, and imputed income tax on empty periods. A Spanish SL pays IBI and corporate tax instead of Modelo 210. A foreign company pays IRNR plus the 3% special levy if it is a passive holding entity in a non-cooperative jurisdiction. The trust, not being recognised, simply does not change the underlying individual or corporate owner’s tax bill.

Which structure should you choose?

For a single buyer purchasing one villa or apartment for personal use with occasional rental, individual ownership is almost always the right answer. It is the cheapest, simplest and most tax-efficient structure for a single asset, and forced heirship can be managed with a Spanish will and a Brussels IV election. For qualifying expats under the 2026 Beckham Law regime, the flat 24% personal income tax rate further narrows the gap with the SL’s 25% corporate rate. For co-buyers, copropiedad under articles 392 to 406 adds flexibility without the corporate tax burden, though each co-owner should understand the partition and first-refusal rules.

A Spanish SL makes sense when you are building a portfolio of three or more properties, need liability protection for a rental business, or want to share ownership with investors who can hold and transfer shares. The 25% corporate tax and annual accounting are the price of the shield. A foreign company is rarely the optimal choice for Spanish real estate because the 3% special levy adds a cost layer the Spanish SL avoids. A trust is not a practical structure for Spanish property because Spain has not ratified the Hague Trust Convention and the tax authority looks through it, making the outcomes unpredictable and the succession benefits illusory. The incoming AMLR compliance burden from July 2027 further tips the balance toward the simplest structure that meets your needs.