How to Buy Property in Spain Using a U.S. Company

Foreign investors looking to acquire real estate in Spain often wonder whether they can use an existing U.S.-based company to complete the purchase. The answer is yes: you do not necessarily need to incorporate a Spanish company. A U.S. company can purchase property in Spain directly, either with or without establishing a permanent establishment (PE) in the country.

In this comprehensive guide, we explain the legal and tax implications, administrative steps, and regulatory compliance required to purchase real estate in Spain through a U.S. company—whether for rental investment, redevelopment, resale, or long-term ownership.

1. Can a U.S. Company Buy Property in Spain?

Yes. A U.S. company can acquire property in Spain without incorporating a local Spanish company. However, several steps must be followed to register the company in Spain for tax and legal purposes.

The key point is determining whether your activity in Spain will require establishing a permanent establishment or not. This will influence your tax obligations, the level of bureaucracy, and the legal risks for your representatives.

2. Permanent Establishment (PE) vs. No PE: What’s the Difference?

Without PE (No Permanent Establishment)
If the U.S. company does not have physical offices, employees, or significant resources in Spain, it can be considered to operate without a permanent establishment. For example:

The property is rented out via platforms like Airbnb.
Management is conducted from abroad or through third parties.
There are no employees or fixed assets in Spain.

In these cases, the company will be taxed as a non-resident entity under Spain’s Non-Resident Income Tax (IRNR), generally at a 24% rate (or 19% for EU companies, not applicable to the U.S.).

With PE (Permanent Establishment)
If the company has an operational base in Spain—such as offices, employees, service vehicles, or local staff—it will be considered to have a permanent establishment. This means:

The company will be subject to Spanish Corporate Income Tax (currently at 25%).
A local tax representative must be appointed.
Higher accounting, tax compliance, and legal responsibilities apply.

In ambiguous cases, the Double Taxation Treaty between Spain and the United States is used to determine whether a PE exists. This agreement helps clarify when a company becomes liable for corporate tax in Spain and protects against double taxation.

3. Corporate Documents Required from the U.S.

To register a U.S. company for operating in Spain, the following original or notarized and apostilled documents are required:

Certificate of Incorporation
Articles of Association
Company Tax ID (EIN)
Certificate of Good Standing or Company Registry Extract
Identification and proof of authority of directors/managers
Shareholder structure (especially identifying beneficial owners over 25%)

All documents must be:

Apostilled according to the Hague Convention
Translated into Spanish by an officially certified translator (either in the U.S. or Spain)

4. Administrative Steps in Spain

a) Obtaining an NIE for the Legal Representative

The NIE (Número de Identidad de Extranjero) is a personal tax identification number. The director or manager of the U.S. company must obtain one, either:

At a Spanish consulate in the U.S., or
Through a lawyer in Spain with a notarized power of attorney.

b) Obtaining the NIF for the U.S. Company

The company must apply for a NIF (Número de Identificación Fiscal) to register with the Spanish Tax Office (Agencia Tributaria). This is your company’s Spanish tax ID and is essential for signing deeds, paying taxes, and dealing with utilities or notaries.

c) Appointing a Tax Representative

For non-resident companies (No PE), appointing a tax representative in Spain is mandatory. This representative must:

Be resident in Spain.
Serve as the contact point for Spanish authorities.
Not be personally liable for the company’s tax obligations (unlike PE companies).

For PE companies, the tax representative becomes jointly and severally liable with the foreign company for its Spanish tax obligations—a major legal responsibility that not all advisors are willing to assume.

5. Compliance with Anti-Money Laundering Laws

Spanish notaries and banks will request:

Declaration of real (beneficial) ownership of the U.S. company (owners with more than 25% shareholding).
Documentation showing the origin of funds (tax returns, accounting reports, etc.)
Proof of identity and activities of all involved parties.

Without compliance, the notary will not authorize the deed, and banks will refuse to open an account or allow transfers.

6. Opening a Bank Account in Spain

The company must open a Spanish bank account to operate locally, pay taxes, and complete the purchase. Each bank will perform its own due diligence, requesting:

Apostilled company documents
NIE/NIF of company and legal representative
Evidence of the investment’s funding and legitimacy

Expect banks to request KYC documentation, including financial statements and AML declarations.

7. Granting Power of Attorney to Your Lawyer

Due to the complexity of this process and the bureaucratic requirements, we highly recommend granting a Power of Attorney (PoA) to a specialized lawyer in Spain. This enables your representative to:

Obtain NIE/NIF on your behalf
Register the company and represent it before the tax office
Open the bank account
Sign contracts and complete the transaction at the notary

This avoids the need for you or your directors to travel to Spain for each step of the process.

8. Summary: Main Considerations for U.S. Companies Buying in Spain

Factor	No PE	With PE
Tax	24% Non-Resident Tax	25% Corporate Tax
Registration Required	Yes	Yes
Tax Representative Required	Yes (not liable)	Yes (personally liable)
Bank Account	Required	Required
Real Ownership Disclosure	Required	Required
Legalization & Translation	Required	Required

Need Help with Buying Real Estate in Spain through a U.S. Company?

At TLA Corporate Services, we specialize in cross-border real estate transactions and company structuring for foreign investors. We offer end-to-end legal, fiscal, and compliance support to ensure your U.S. company can acquire and manage Spanish properties safely and efficiently—without unnecessary bureaucracy.

Contact us today to schedule a consultation and begin your investment journey in Spain.