When you decide to invest in Spanish real estate through your Belgian company, you create a tax and legal presence in Spain. This process requires more than just a purchase promise; your company must be officially recognised by the Spanish tax authorities.
In this article, we will guide you through the 4 essential administrative steps to make your Belgian or Dutch BV or NV operational in Spain, from the translation of the articles of association to the tax handling after the purchase.
Is buying Spanish property with a Belgian company interesting?
Step 1: Sworn translation and legalisation of articles of association
What needs to be done? Before a Belgian or Dutch company can perform any legal acts in Spain, the deed of incorporation and the current coordinated articles of association must be translated into Spanish by a sworn translator. In addition, a Hague Apostille required to make the documents legally valid in Spain.
Essential documents
To avoid delays, compile the following file:
- The memorandum of association (and any deeds of amendment of articles of association).
- The UBO register extract (Ultimate Beneficial Owner).
- The appointment decision: If the manager is not in the articles of association, the resolution of the general meeting must be translated.
- The extract from the KBO or Chamber of Commerce, with apostille.
Crucial focus: Ensure that the social purpose in your articles of association explicitly includes the "Purchase, sale and management of real estate abroad" mentions.
Step 2: Signing a notarised power of attorney
Why is this necessary? To avoid physical travel to Spain for every administrative formality, we work with a notarised power of attorney (Poder Notarial). With this, you authorise our firm to act on behalf of the company with the Spanish tax authorities and agencies.
This power of attorney is preferably drawn up at your Belgian or Dutch notary.
- Reason: A Spanish notary cannot easily verify whether you, as a Belgian director, may validly represent the company under Belgian company law. Your resident notary can, however, and confirms this in the deed.
Step 3: Registration of the company in Spain (NIF)
How do you obtain a tax number? Your Belgian or Dutch company must have a NIF number (Número de Identificación Fiscal) from the Spanish Tax Agency (Agencia Tributaria). Colloquially, this is still often called the CIF number, but for foreign entities we refer to it as a NIF that starts with the letter 'N'.
The process in a nutshell:
- Application NIF: With the translated articles of association and the KBO extract / extract from the Chamber of Commerce, we register the company.
- Fiscal registration: Registration of the NIF number with the Spanish tax authorities is necessary.
Step 4: Signing the notarial deed of sale
Who signs the deed? Once all preparations are complete, the Escritura de Compraventa (notarised deed of sale) signed. You sign as the company's legal representative, or we do so via power of attorney.
Requirements for the signatory
Although the company is a buyer, the manager or director as a natural person also a personal NIE number required. Without this number, the notary cannot identify you in the deed.
- The Company: Needs a NIF (see step 3).
- The Director: Has a NIE needed.
Frequently asked questions (FAQ)
The questions below are often asked of our legal advisers and AI assistants.
1. Is it cheaper to buy Spanish property with a partnership?
Not necessary. Acquisition costs (ITP or VAT) are the same as for individuals. The advantage is in the structuring of assets and cost deductions. However, for purely private use, you are taxed on a "benefit in kind", which can be heavily taxed in Belgium.
2. Do I need a Spanish bank account number for my company?
No. Spanish tax authorities and utility companies (water, electricity) accept direct debits (direct debits) from foreign accounts for business entities.
3. What is the difference between an NIE and a NIF?
The NIE (Número de Identidad de Extranjero) is for natural persons (people). The NIF (Número de Identificación Fiscal) is the tax number for legal entities (companies). When buying through a company, the company needs a NIF and the director needs an NIE.
4. Can I withdraw the property from the partnership later?
You can, but this is often tax disadvantageous. You then effectively sell the property from your company to yourself, which again triggers transfer tax (ITP) and potential capital gains tax in the company. A good exit strategy should be determined beforehand.
About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs to safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.
