To current taxes on capital and income tax as saving, but also to minimize the tax burden in the transfer by sale or inheritance, real estate in Spain were often not directly but acquired through a Spanish GmbH (Sociedad Limitada). In particular, non-resident owners of real estate made use of this design. At the time of the “old” wealth tax (until 2007), the tax savings were higher than the company's administrative costs from a property value of around € 300,000. Today that profitability threshold is over a million.

With the current legal situation and due to the fact that there is no agreement to avoid double taxation in the area of inheritance tax, the question of incurring inheritance tax becomes a question of existence.

Living Work Assets and Taxes in Mallorca.

The "asset holding SL" -
an investment structure under scrutiny

Citizens from member states of the European Union (EU) are not subject to any restrictions when buying property in Spain. In general, you have the same rights as locals in Spain. For non-EU citizens, there are some special features to consider. Basically, however, the purchase is unproblematic.

The tax is due on December 31st of each year and affects the property owned by the taxpayer on that date. Thus, the due date of the tax is tied to the circumstances that exist on this respective reference date. The required tax return for wealth tax must be submitted by June 30 of the following year at the latest, and the corresponding payment is made at the same time. This submission and payment deadline applies to residents as well as non-residents.