Buying Property in Spain Through a Company: Can You Really Pay Only 2% Transfer Tax?

If you’re thinking of buying property in Spain, you’ve probably come across the idea of purchasing through a company to reduce transfer tax (ITP) from 7% to just 2%. On a high-value property in areas like Marbella, Mijas Costa, or Estepona, that could mean saving tens of thousands of euros.
But is it really that simple? The short answer: no — the reduced 2% ITP applies only in very specific situations, and failing to meet the requirements can lead to unexpected tax bills, interest, and penalties.

Non-Resident Tax Returns

Non-Resident Tax Returns

If you own a property in Spain but live more than 183 days a year outside of Spain you will be considered a Non-Resident in Spain for Tax purposes. Therefore, you will need to pay property taxes in Spain even if you normally pay taxes in your home country.As a...