COMPANIES
Companies acquiring property in Spain—property-holding companies, limited liability companies (SL), corporations, developers, and special purpose vehicles (SPVs)—can access mortgage financing on terms that differ substantially from mortgages for individuals. Typical LTV ranges from 50% to 70%, terms are usually 15 to 25 years, and credit assessment is based on the company’s financial statements, the guarantee structure, and, in most cases, the creditworthiness of shareholders or guarantors.
Financing through a company can offer significant benefits in terms of tax efficiency, asset protection, and investment structure. But access to financing is more restrictive: not all institutions work with legal entities, and those that do apply different assessment criteria. Altavista Finance knows which institutions finance each type of corporate structure and on what terms.
50+ financial institutions
CORPORATE STRUCTURES WE WORK WITH
Property-holding companies
Companies whose primary purpose is to hold and manage real estate assets. This is the most common structure for buyers acquiring multiple properties or seeking to optimise the taxation of rental income.
Limited liability companies (SL) and corporations
Operating companies that acquire property for their own use, such as corporate premises, or as an investment within their business activity.
Developer SPVs
Special purpose vehicles created by developers to finance real estate development projects. Each SPV is linked to a specific project.
Corporate holding companies
Business groups that structure real estate acquisitions through a parent company or a dedicated subsidiary.
International structures
Foreign companies or structures with parent companies in other jurisdictions that acquire property in Spain.
WHEN IT MAKES SENSE TO BUY THROUGH A COMPANY
Tax efficiency
Income generated by the property is taxed differently depending on whether it is received by an individual or through a company. Depending on the income level, corporate structure, and autonomous community, corporate taxation may be more efficient.
Asset protection
Corporate ownership separates the real estate asset from the investor’s personal assets.
Multi-investor structures
When several investors participate in an acquisition, a corporate structure is the natural way to organise ownership.
International holding companies
For family or corporate groups operating across several jurisdictions, purchasing through an entity allows the asset to be integrated into a broader wealth structure.
AVF does not provide tax or legal advice. We work with specialist tax advisers and lawyers who can guide you on the optimal structure for your case.
KEY CONSIDERATIONS IN CORPORATE FINANCING
01
Differences in credit assessment
Financial institutions do not assess a company in the same way as an individual. The analysis focuses on the company’s financial statements (balance sheet, income statement, and cash flow), shareholder structure, company credit history, and, in most cases, the personal creditworthiness of shareholders or directors.
02
LTV and terms
Typical LTV for corporate financing ranges from 50% to 70%, lower than for mortgages to individuals. Interest rates are usually slightly higher, and terms generally range from 15 to 25 years.
03
Guarantees
Most institutions require personal guarantees from shareholders or directors, in addition to the mortgage security over the property.
04
Documentation
The documentation required for a corporate mortgage is considerably more extensive than for a personal mortgage. It includes incorporation deeds, powers of attorney, audited financial statements, company tax returns, beneficial ownership certificates, and personal documentation for shareholders and guarantors.
REAL TRANSACTIONS WITH COMPANIES
FREQUENTLY ASKED QUESTIONS ABOUT CORPORATE MORTGAGES
Can a newly incorporated company obtain a mortgage in Spain?
It is possible, but significantly more difficult. Most institutions prefer companies with at least two to three years of operating history. AVF knows which institutions are more flexible with newly incorporated companies.
What is the typical LTV for a corporate mortgage in Spain?
Typical LTV ranges from 50% to 70% of the appraised value. This is lower than the usual LTV for individuals, which ranges from 60% to 80%.
What documentation does a company need to apply for a mortgage?
Documentation includes incorporation deeds and powers of attorney, financial statements for the last two to three financial years, company tax returns, beneficial ownership certificates, and full personal documentation for shareholders and guarantors.
Can a foreign company buy property and obtain a mortgage in Spain?
Yes. The process is more complex: it requires obtaining a Spanish tax identification number (NIF), apostilling or legalising corporate documents, and presenting financial statements in recognised formats. Not all institutions work with foreign companies. AVF knows which ones do.
Do banks require personal guarantees from shareholders?
In the vast majority of cases, yes. Institutions require the principal shareholders or directors to personally guarantee the transaction.
What are the tax implications of buying through a company?
Tax treatment varies significantly depending on the type of company, the autonomous community, the use of the property, and the income structure. AVF does not provide tax advice. We work with specialist tax advisers.
How long does the mortgage process take for a company?
Generally between 12 and 20 weeks, slightly longer than for individuals.
What types of property can a company finance?
In addition to residential property, companies can finance commercial property, retail units, industrial warehouses, entire buildings, land, and development projects.
CONTACT US
If you are considering a real estate transaction in Spain and want to understand which options make sense to explore, we would be happy to talk.