Buying property through a company suits far fewer people than most assume: it pays off when there are several properties, rental income and genuine business activity, and almost never when it is the home you intend to live in. The question is back in fashion because of June 2026's figures: 11,153 companies were created in Spain, the best June in 19 years, but with 22.2% less capital than a year earlier.
What the June 2026 data actually says
The headline is good: company formation is back in positive territory after two consecutive months of year-on-year falls, with growth of 1.7%. But beneath the headline are three figures that temper the optimism considerably.
| Indicator (June 2026) | Figure | Annual change |
|---|---|---|
| Companies created | 11,153 | +1.7% |
| Total capital subscribed | €344 million | −22.2% |
| Average capital per company | €30,847 | −23.5% |
| Companies dissolved | 1,814 | +14.6% |
The honest reading is that more companies are being created, but smaller ones with less financial muscle behind them, while 14.6% more are being wound up. Around six companies are formed for every one dissolved — still a healthy ratio, but narrower than last year. This is a market with plenty of initiative and little capital committed per project: caution, not euphoria.
It is also worth stating what these figures do not say. The statistics are not broken down by region or by sector, so they cannot tell us how many of those companies are Andalusian or how many were set up to invest in property. Anyone quoting such a figure from this data is making it up. What it does work as is a thermometer of the general investment climate.
When does buying property through a company make sense?
That average of €30,847 describes most companies formed today rather well: small, with one or two shareholders, often set up for a single project. Many international buyers arriving on the Costa del Sol are considering exactly that — forming a Spanish SL in order to buy. The answer depends almost entirely on one question: is this an investment with real activity, or is it your home?
| Aspect | Buying as an individual | Buying through a company |
|---|---|---|
| Purchase tax (ITP or VAT) | Same | Same |
| Taxation of rental income | Personal income tax, progressive rate | Corporate tax, flat rate |
| Deductible expenses | Limited | Broader |
| Relief for long-term residential letting | Yes, in personal income tax | Not applicable |
| Main-home exemption on sale | Possible | No |
| Personal use of the property | Unrestricted | Must be paid for at market rate |
| Fixed annual costs | Minimal | Bookkeeping, annual accounts, adviser fees |
| Taking money out for personal use | Direct | Double taxation via dividends |
That last row is what usually undoes the plan. The company may be taxed at a flat rate below your top personal income tax band, but that money sits inside the company; to spend it you have to distribute dividends and pay tax again. If your aim is to reinvest and grow a portfolio, the company wins. If your aim is to draw income to live on, it almost always loses.
The mistakes we see most often
- Putting your main home into the company. You lose the tax advantages attached to a primary residence and, if you use it yourself, you must pay your own company a market-rate rent. It is the most expensive mistake and the most common one.
- Setting up a company for a single property. The fixed costs of bookkeeping, annual accounts and advice swallow the tax advantage when there is only one flat being let.
- Assuming the company saves tax on the purchase itself. It does not: transfer tax on resales, and VAT plus stamp duty on new builds, are payable just the same.
- Thinking that selling the company instead of the property avoids tax. There is an anti-abuse rule designed for exactly that situation when the company's main asset is real estate.
- Forming the company before deciding the strategy. The correct order is to choose the asset and the plan first, and the structure second. Never the other way round.
None of this replaces a tax adviser, still less if you are a non-resident: the right structure depends on your country of residence, the applicable double-taxation treaty and your overall asset position. What we can tell you with data is which asset makes sense to buy. In our Costa del Sol market report we publish median prices and euros per square metre by municipality every month, which is the basis on which any yield calculation is built.
Conclusion
June's figures leave a reasonable message: there is appetite to start businesses and invest in Spain, but with less capital per project and more closures than last year. Translated into property terms, it is a good time to structure carefully and a bad time to improvise. A company is not a tax trick, it is a tool that pays off with volume and genuine activity. If you are considering investing in Marbella, Estepona or Málaga, at EVS PROPERTY GROUP we can help with the part that is genuinely ours: finding the right asset and stress-testing its numbers before you settle on a structure.
Frequently asked questions
Do you pay less tax when buying a property through a company?
Not on the purchase. Transfer tax on resale homes and VAT plus stamp duty on new builds are identical for an individual and for a company. The difference appears afterwards, in how rental income is taxed and which expenses you can deduct.
Can a non-resident foreigner set up a Spanish company in order to buy?
Yes. A non-resident can be both shareholder and director of a Spanish company. You will need a NIE number, a name clearance certificate from the Commercial Registry, a bank account, a notarised deed of incorporation and registration. Non-residency is no obstacle, but it is worth checking first how it interacts with the tax rules of your own country.
How many properties do you need before a company is worth it?
There is no legal threshold; it is an arithmetic question. The practical rule is that the company's fixed annual costs — bookkeeping, annual accounts, advisory fees — must sit clearly below the tax saving it generates. With one property that rarely happens; with a rental portfolio and reinvested profits, it often does.
Can I live in a house owned by my own company?
You can, but not for free. Transactions between a shareholder and their company must be valued at market rates, so you would have to pay rent to your own company and the company would be taxed on that income. It is one of the reasons a primary residence should almost never sit inside a company.
Does June's company formation data say anything about the property market?
Only indirectly. The statistics are not broken down by sector, so they cannot measure property investment. As a confidence indicator they are useful: more new projects with less committed capital and more dissolutions points to an investor who is active but cautious — the same pattern we are seeing on the Costa del Sol.
What next? The most useful thing after reading is to look at the real market: browse properties by city or tell us on WhatsApp what you are looking for — area, budget, timing — and we will prepare a tailored selection, with no obligation.
You may also find useful: sell your property invest on the Costa del Sol free valuation monthly price report
