Property Ownership Structures in Marbella: Personal, Company, or Trust?
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How you hold your Marbella property matters for tax, estate planning, and future flexibility. Here is an honest overview of the options buyers consider when buying property in Marbella.
Does ownership structure matter?
For many buyers, the answer is: not much. If you are buying a holiday home with a straightforward financial situation, holding the property in your own name (or jointly with a partner) is perfectly sensible. Simple, low-cost, no ongoing compliance requirements beyond normal property taxes.
But for higher-value purchases, complex family situations, buyers with significant assets, or those planning rental income, the ownership structure can have meaningful tax and estate planning implications. It is worth understanding before you buy, not after.
Personal ownership
Buying in your own name (or joint names) is the default for most buyers and works well for most situations. It is simple to set up, transparent, and well-understood by Spanish authorities. Estate planning is handled through Spanish succession rules, which apply to Spanish assets regardless of where you are resident - and Spanish inheritance tax rates can be significant depending on the relationship between the deceased and the beneficiary.
Spanish company (SL - Sociedad Limitada)
Some buyers hold property through a Spanish company. This can provide certain tax advantages - particularly around rental income and expenses - and can simplify transfer of ownership in estate planning by transferring company shares rather than property title (which triggers transfer taxes). However, a Spanish company has annual compliance costs, accounting requirements, and corporation tax obligations. The net benefit depends entirely on your specific situation.
Foreign company ownership
Holding Spanish property through a non-Spanish company (UK Ltd, Luxembourg holding company, etc.) is possible but increasingly complicated by Spanish tax reporting requirements and the EU's transparency initiatives. Spanish authorities have tightened reporting around foreign company ownership significantly in recent years. This structure warrants specialist cross-border tax advice before proceeding.
Joint ownership and inheritance in Spain
If you are buying property in Marbella with a partner, spouse, or family member, think carefully about how the ownership is structured and what happens in the event of death. Spanish succession law applies to Spanish assets - and unlike in England, there is no automatic transfer between spouses without a will and, potentially, inheritance tax. Spanish property requires a Spanish will (testamento) alongside any existing will in your home country.
The professional you need here is a cross-border tax adviser, not just your property lawyer. Both have important but different roles.
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Check if it's still free - PlanMarbella.comFrequently Asked Questions
Do I need a Spanish will if I own property in Marbella?
Yes. A Spanish will covering your Spanish assets is strongly recommended. EU regulations allow you to elect for the law of your home country to govern your EU assets, but a Spanish will (registered with the Spanish central wills registry) makes the process of estate administration significantly simpler for your beneficiaries.
Is there inheritance tax on Spanish property?
Yes. Spanish inheritance tax applies to Spanish assets regardless of where the deceased or beneficiary was resident. Rates and allowances vary by region and by relationship to the deceased. Andalucia has improved allowances compared to some other regions, but it remains worth planning for.
Can I buy Marbella property through a UK company after Brexit?
Yes, but the tax and reporting implications have become more complex since Brexit. Spanish authorities have increased transparency requirements around non-EU company ownership. Specialist advice from a lawyer familiar with both Spanish and UK tax law is essential before using this structure.