For a single holiday home, personal ownership is the normal choice, and a company usually adds accounting costs, reporting duties and tax traps without a clear saving. A company can make sense for a real rental business, but only if it is based in a jurisdiction that is not on the Spanish or Portuguese blacklists. Owning through a company in a blacklisted jurisdiction triggers extra annual taxes: in Spain a levy of 3% of the cadastral value, and in Portugal a 10% property transfer tax and 7.5% annual property tax. In Greece, companies pay a 15% special real estate tax on the objective value unless an exemption applies. This guide sets out the pros and cons, a worked comparison of the tax on rent, and the questions to ask an adviser. It is general information, not legal or tax advice, and the right structure depends on your country of residence, which I cannot know here.
Why do people consider a company?
The usual reasons are to limit liability, to share ownership between partners, to simplify a later sale by selling shares instead of the property, to deduct costs against rental income, or to recover VAT where the property is used in an economic activity. Some buyers are also told that a company gives anonymity or avoids inheritance rules, and those claims are the ones to treat with the most caution: one guide I read says the anonymity benefit is gone because beneficial owners are disclosed, and that the inheritance advantage has largely gone as well.
What are the pros?
- Corporate tax on profit. In Spain the general corporate tax rate is 25% on profit, after deductible expenses, which can be attractive when there are many costs to deduct.
- VAT recovery. Where the property is used in an economic activity such as a long business let, VAT on costs may be recoverable.
- Share transfers. The business can be sold by selling shares, subject to the tax rules of the country and the lawyer’s advice.
- Several owners. A company can give a clean framework for partners, although co-ownership agreements are an alternative.
What are the cons?
- Running costs. Accountants, annual accounts, tax filings and company registers cost money every year, whether or not you earn any rent.
- Personal use can be taxed. If shareholders use the home themselves, tax authorities can expect a market rent to be charged to them, according to one guide.
- VAT on rent. A company letting a residential property may face VAT questions that a private owner does not.
- Disclosure. In Spain, beneficial owners holding 25% or more are reported to the tax agency, so a company does not hide the owner.
- Evasion risk. Structures that use a company only to avoid tax are a known target for the authorities.
- Extra tax on blacklisted jurisdictions. See the next sections.
- Getting money out. Profits paid out to shareholders may face a further layer of tax, which depends on your residence; ask your adviser.
What does Spain say about companies?
Spain applies a special annual levy of 3% of the cadastral value to property owned by entities resident in non-cooperative jurisdictions, declared on Modelo 213 by 31 January. It applies only to such entities, so a Spanish company or a company from a cooperative jurisdiction is not caught by it, according to the tax agency page I read. Exemptions exist for some entities, but they need documentation. The practical point is that an offshore company holding a Spanish villa is an expensive and visible structure. For the ordinary non-resident route, see non-resident taxes in Spain.
What does Portugal say about companies?
Under the Portuguese rules I read, companies resident in blacklisted jurisdictions pay a 10% IMT on purchase and 7.5% on the annual IMI and AIMI property taxes, while personal ownership is standard practice. A company makes sense only for a rental business, and only if it is based in a jurisdiction that is not on the blacklist. Non-resident rental income is taxed at 25%. See Portugal IMT and getting a Portuguese NIF for the personal route.
What does Greece say about companies?
A company that owns Greek property pays a special real estate tax of 15% of the objective value each year unless it qualifies for an exemption, and the exemption generally requires the company to disclose its shareholders through the whole ownership chain, with Greek tax numbers for each. See buying property in Greece.
A worked comparison of the tax on rent
As an illustration only, suppose a Spanish holiday apartment earns €10,800 of gross rent a year, with €3,000 of deductible running costs. The figures use the 2026 rates quoted by the sources above, and they exclude the owner’s home-country tax, VAT and local rules, so they are not a quote.
| Owner | Tax base | Rate | Tax |
|---|---|---|---|
| Individual, EU/EEA resident | Net: €7,800 | 19% | €1,482 |
| Individual, non-EU resident | Gross: €10,800 | 24% | €2,592 |
| Spanish company, after €1,500 of accountant and filing costs | Profit: €6,300 | 25% | €1,575 plus the €1,500 of costs |
Conversions are approximate and use the European Central Bank reference rates of 14 October 2026 (€1 = £0.844 = $1.120). Rates move every day.
In this illustration the company’s tax (€1,575) is higher than the EU individual’s (€1,482) and its costs make the total cost about €3,075, against €1,482. The company beats the non-EU individual in the tax line alone (€3,075 against €2,592), but only before any further tax on paying out the profit. The result changes with the level of expenses, the number of properties and your residence, which is why the question needs an adviser rather than a rule.
When might a company make sense?
- You run several rental properties as a business with real costs.
- You have partners and want a structure for them.
- Your adviser confirms the tax in your home country and in the country of the property.
- The company is based in a jurisdiction that is not blacklisted.
When is personal ownership better?
- You buy one home for your own use and occasional letting.
- You want simple paperwork and to claim any main-home reliefs available.
- You do not want annual accounts and filings.
What questions should you ask an adviser?
- What tax will I and the company pay in each country, each year and on sale?
- Is the company on any blacklist, and what extra taxes follow?
- Who must be reported as a beneficial owner?
- What happens if I use the home myself?
- What are the annual accounting costs, in writing?
- How would I get money out, and what is the tax on that?
Related reading: should you buy property abroad at all, how to choose a lawyer and how to avoid property scams, since schemes that promise tax-free ownership are a common sales pitch.
How should you think about the decision?
Start from the use of the property, not from the structure. If the home is mostly for your own holidays, with a few weeks of letting to cover costs, the extra layer of a company rarely pays for itself, and the extra paperwork is a recurring cost you will pay every year even in a year with no rent. If you are building a portfolio of lets that is run like a business, with a manager, a bookkeeper and real expenses, the corporate route deserves a proper comparison, but that comparison should be done with figures from your own situation: purchase price, expected rent, expenses, your country of residence and your exit plan.
Ask the adviser to produce the same three-line table for each option: tax each year, running costs each year, and tax on a sale. Add the cost of setting up and later closing the company. A structure that saves a few hundred euros of tax but costs more than that in accounts has no advantage, and a structure that depends on one favourable reading of the rules is a risk you carry alone. Also keep the company’s paperwork current: late accounts, missing filings or an unreported beneficial owner can produce penalties that are larger than the tax you set out to save.
Finally, be wary of anyone who sells an offshore structure as a way to pay no tax or to keep your name off the record. The sources I read for Spain, Portugal and Greece all point the other way: extra taxes for blacklisted jurisdictions, disclosure of beneficial owners and a standard route of personal ownership. If a pitch contradicts that, ask for the law and the article in writing before you pay anything.
Frequently asked questions
Is it cheaper to buy a holiday home through a company?
Usually not for a single home: you add accounting and filing costs, and may face VAT, personal-use and disclosure issues. It can make sense for a real rental business.
Does a company make the owner anonymous?
No. In Spain beneficial owners holding 25% or more are reported to the tax agency.
What is the Spanish 3% levy?
A yearly tax on the cadastral value of property owned by entities resident in non-cooperative jurisdictions, declared on Modelo 213 by 31 January.
What happens in Portugal with a blacklisted company?
The sources I read give 10% IMT on purchase and 7.5% IMI/AIMI on the annual property tax.
What does Greece charge companies?
A special real estate tax of 15% of the objective value unless an exemption applies, which requires full disclosure of the shareholders.
This is general information, not legal or tax advice. Rules and rates change, and your situation may differ. Confirm the figures with the tax authority and a qualified lawyer or tax adviser before you commit. Facts last checked on 16 October 2026.
Sources
Official sources (check these for the current rule):
Also cross-checked against published guides, because practice varies between notaries, registries and banks:
