Trapped in a Multi-Currency Mortgage in Spain?
How Del Canto Chambers Can Help You If you entered into a mortgage in Spain – whether with a Spanish or international bank – and that loan was offered as
18. August, 2025
OUR EXPERTISES > PRIVATE CLIENTS & FAMILIES
Property Tax in Spain
Purchasing Property in Spain
If you are purchasing a property in Spain you need specialist legal and tax advice to ensure a smooth and cost-effective transaction. In 1998, the Spanish non-resident income tax law introduced a tax liability on property in Spain owned by non-residents.
If you are buying a residential property in Spain the amount of tax you will pay will depend on where you are buying and whether it is a new or resale property:
- If you purchase a new build property, which has never previously been occupied, you need to pay the equivalent of VAT (Impuesto sobre el Valor Añadido – IVA – in Spanish) which is 10% of the price, and Stamp Duty, 1.5% Legal Documentation Tax (Actos Jurídicos Documentados – AJD – in Spanish).
- If you’re buying a resale property that has previously been occupied, you need to pay transfer tax (Impuesto sobre Transmisiones Patrimoniales – ITP – in Spanish) which is calculated on a sliding scale depending on the purchase price. The national rule of ITP is 7%, but many of the autonomous regions have applied higher local rates.
The figures above are indicative of the tax payable during a Spanish property purchase but the actual costs will depend on your particular circumstances and the region you are looking to purchase in, so please contact us for an accurate estimate.
Our Experts in Spanish Property Tax
Our clients have the word
We bought our property near Alicante in 2007 with a mortgage through Banco Guipuzcoano the bank was later absorbed by Banco Sabadell. I read in the press about the mortgage Floor Clauses and Mortgage Expenses applied by the banks which the Spanish Courts have judged illegal. We redeemed our mortgage in 2017 with the bank. I contacted Del Canto who managed our claim front to back with no need for us to go over to Spain. The result is the return of £19k to us. Julio Prieto and the team in Spain and the UK kept us informed throughout process. I am therefore very happy to recommend Del Canto Chambers.We can recommend Del Canto Chambers and would not hesitate in using them in the future for any further legal work we require.
Owen Stafford
My wife and i recently obtained our Golden Visa TIE´s for which we would like to thank Del Canto Chambers for all the work they did to enable us to achieve this. A special thanks to Julia Moreno who diligently worked with us to make the application and subsequent approval as easy as possible.
We would thoroughly recommend Del Canto Chmbers.
Christopher FeatherstoneBuying Spanish Property Through a Company
To mitigate their tax liabilities, some people buy their Spanish Property through a company. Whilst this can be effective it obviously has tax and legal implications that need to be considered. The most suitable solution will depend on the particular circumstances but some considerations include:
- International property structures are not cheap to set up and maintain, so the potential savings in terms of tax must be substantial if they are to be financially viable. If a property is worth £1m or more then this may be a good route to consider.
- You must be able to demonstrate a controlling stake in the company e.g. direct or indirect control over the voting rights and the power to name/remove the majority of board members.
- If a foreign property has been owned through a limited company or other corporate structure, which has conducted basic tax-planning for a number of years.
- If the company’s tax obligations have not been complied with, might the structure fall within the definition of aggressive tax planning?
If you are considering purchasing a Spanish property through a company it is essential that tax and legal professionals should review the structures used to buy property to ensure compliance
Unfortunately, many Spanish property owners who created corporate structures to purchase their property years previously and have given them little consideration since. The Spanish tax authorities are aware of this and if a company was created before 2018 and the tax position has not been assessed recently, they may investigate.
What makes Del Canto Chambers the right choice for you?
Del Canto Chambers’ dual-qualified, multilingual tax lawyers have handled over 500 complex cases from Europe, the Middle East, Latin America, and Asia. Discerning London-based and international clients, corporations, solicitors, and tax advisors count on our expertise.
You can more about what clients have to say, about working with Del Canto Chambers here below.
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Let us help you with your Spanish Property Tax
Del Canto Chambers specialists are constantly up to date with new legislative changes and aware of any Spanish tax and legal implications. Contact our Spanish legal and tax specialists to find out the best tax planning and corporate structures in your circumstances.
Testimonials
Del Canto Chambers undertook instructions from ourselves regarding a floor clause claim against our Spanish bank which holds our mortgage. During this time, our main point of contact has been Eva de Francisco.
Recently the case has been found in our favour and we have been happy to receive a refund of over payment of interest of just under 9K€. We have been guided through the procedure by Del Canto Chambers, specifically in the preparation of the case ensuring the correct documentation and necessary authorities were in place. During the complete process, Del canto Chambers demonstrated diligence and professionalism.
We can recommend Del Canto Chambers and would not hesitate in using them in the future for any further legal work we require.
Andrew and Hilary Hodge
We bought our property near Alicante in 2007 with a mortgage through Banco Guipuzcoano the bank was later absorbed by Banco Sabadell. I read in the press about the mortgage Floor Clauses and Mortgage Expenses applied by the banks which the Spanish Courts have judged illegal. We redeemed our mortgage in 2017 with the bank. I contacted Del Canto who managed our claim front to back with no need for us to go over to Spain. The result is the return of £19k to us. Julio Prieto and the team in Spain and the UK kept us informed throughout process. I am therefore very happy to recommend Del Canto Chambers.We can recommend Del Canto Chambers and would not hesitate in using them in the future for any further legal work we require.
Owen Stafford
Wow, what a refreshing experience – from start to finish the Del Canto team were extremely professional, responsive, knowledgeable and supportive throughout the process of forming a Spanish company and helping transition of our working lives from the UK.
Julio in particular went beyond expectations to coordinate everything efficiently. Thank you!
The meeting was encouraging so we formally instructed them to act on our behalf to pursue a claim against the Menorcan bank.
During the investigation we were kept up to date regularly and after delays created by the pandemic, we finally heard the Spanish High Court had found on our behalf and award a substantial amount.
So a very big thank you to all the team and wish them well for the future.
Andy Wright
I have worked with Del Canto Chambers through a number of clients and have found them to be an extremely useful resource on International tax matters. Del Canto knowledge and proactive approach is greatly appreciated by clients, and has helped them develop a strong reputation in the marketplace.
Julio in particular went beyond expectations to coordinate everything efficiently. Thank you!
The meeting was encouraging so we formally instructed them to act on our behalf to pursue a claim against the Menorcan bank.
During the investigation we were kept up to date regularly and after delays created by the pandemic, we finally heard the Spanish High Court had found on our behalf and award a substantial amount.
So a very big thank you to all the team and wish them well for the future.
Azad Majid
I have worked with Leon on several business and personal legal projects and appreciate his responsiveness and follow up, his legal insight, expertise and ability to deliver in a timely and cost-effective manner.
Julio in particular went beyond expectations to coordinate everything efficiently. Thank you!
The meeting was encouraging so we formally instructed them to act on our behalf to pursue a claim against the Menorcan bank.
During the investigation we were kept up to date regularly and after delays created by the pandemic, we finally heard the Spanish High Court had found on our behalf and award a substantial amount.
So a very big thank you to all the team and wish them well for the future.
Christopher CharlesonDel Canto Chambers has a 5/5-stars client satisfaction on Google Review
Satisfied clients are among our highest priorities. See what other clients has to say about us on Google Review:
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