Author: Jasmien (Legal Department NB-ESTATES)
Are you considering buying your apartment or villa in Spain not in your own name, but through a company (Sociedad Limitada, or SL)?
It sounds appealing: you enjoy limited liability, you can deduct expenses and maybe even save on taxes.
Yet for most second-home buyers this is rarely the smartest option. The Spanish tax authorities quickly classify an SL without real business activity as a sociedad patrimonial. And that label comes with important disadvantages.
In this article you will read what a sociedad patrimonial really is, what the tax consequences are, and in which exceptional cases it can still make sense.