Corporate income tax for a Spanish SL holding property: what the company owes and when (2026)

How a Sociedad Limitada that owns Spanish property is taxed each year, what it can deduct, and what happens when the dividend leaves Spain.

A Spanish Sociedad Limitada (SL) that holds real estate pays the Impuesto sobre Sociedades (IS), the corporate income tax, each fiscal year. The standard rate is 25%, set by Article 29 of Ley 27/2014, and the company files Modelo 200 within 25 calendar days following six months after its year end. Unlike a private non-resident owner, who faces a deemed-income charge on an empty home through Modelo 210, an SL has no equivalent imputed income provision: the imputacion de rentas inmobiliarias in Article 85 of Ley 35/2006 applies to individuals under IRPF, not to companies under IS. When the SL distributes a dividend to a non-resident shareholder, a withholding of 19% or 24% applies depending on where the shareholder lives. This guide sets out the rates, the deductions, the filing mechanics, and the one trap that catches most foreign buyers.

What is the Impuesto de Sociedades rate for a property-owning SL in 2026?

The general corporate income tax rate in Spain is 25% for 2026, fixed by Article 29.1 of Ley 27/2014 (BOE-A-2014-12328) and confirmed by the Agencia Tributaria’s published rate table. The law set a temporary 28% rate for 2015, then settled at the 25% general rate from 2016 onward, where it has held since. For a property-holding SL, this is the rate that applies to net taxable income: rental receipts minus deductible expenses, or the gain on a property sale.

A reduced 15% rate applies to newly incorporated entities (entidades de nueva creacion) that carry on an economic activity, but only for their first two profitable periods. Article 29.1 of Ley 27/2014 sets this condition, and the Agencia Tributaria’s corporate tax guidance restates it. The catch for property holders is the patrimonial classification, which we cover below. A patrimonial SL, one whose assets are more than 50% property or investments not linked to a genuine economic activity, loses access to the 15% new-entity rate and the micro-enterprise sliding scale. It pays the full 25%.

SL type	IS rate 2026	Conditions
Standard SL	25%	General rate under Article 29.1
Newly incorporated SL	15%	First two profitable periods, economic activity required
Micro-enterprise (turnover < EUR 1m)	17% on first EUR 50k, 20% on rest	Reduced scale, but patrimonial SLs excluded
Patrimonial SL	25%	No new-entity or micro relief
Credit institutions	30%	Not relevant to property holding

Does the SL pay tax on an empty, unlet property?

This is the most misunderstood rule in corporate property ownership. A private non-resident owner of an empty Spanish home pays an imputed income tax each year, filed on Modelo 210, calculated as a percentage of the property’s cadastral value. The charge flows from Article 85 of Ley 35/2006, the IRPF imputacion de rentas inmobiliarias, extended to non-residents through Article 85 of the IRNR consolidated text.

An SL faces no equivalent provision. The Impuesto de Sociedades does not deem a notional yield on property held as an asset. If the company holds a villa, earns no rent and sells nothing, its taxable base is zero. It still files Modelo 200, because the filing obligation is separate from the payment obligation, but the return shows a nil or low base. This is a genuine structural advantage of the corporate route for a buyer who intends to hold a property empty for personal use, though it must be weighed against the annual compliance cost of running a company. Our annual property taxes guide sets out the Modelo 210 imputed income regime that applies to individual owners.

What can the SL deduct against rental income?

When the SL lets the property and earns rental income, it can deduct expenses directly linked to generating that income. Article 12 of Ley 27/2014 governs depreciation, and Article 15 lists expenses that are explicitly non-deductible. The deductible costs for a property-owning SL typically include:

• IBI (the municipal property tax, catastral value guide)
• Community-of-owners fees
• Property insurance
• Repairs and maintenance (not improvements, which are capitalised)
• Property management or letting agent fees
• Mortgage interest (subject to the Article 16 financial expense limit)
• Depreciation of the building, typically 3% per year on the construction cost (land is not depreciable)
• Utility costs where paid by the SL

Article 15 of Ley 27/2014 bars several categories: the corporate tax itself, fines and penalties, gambling losses, donations (with limited exceptions), and expenses linked to tax-haven transactions without economic substance. The financial expense limit in Article 16 caps net interest deductions at 30% of operating profit, with a minimum EUR 1 million deductible, which matters for a leveraged property acquisition.

What is the filing deadline and which form does the SL use?

The SL files its corporate tax return on Modelo 200, electronically through the Agencia Tributaria. Article 124.1 of Ley 27/2014 fixes the deadline: 25 calendar days following the six months after the close of the fiscal period. For an SL on a calendar year (closing 31 December), six months expire on 30 June, and the 25-day window runs to around 25 July.

The company must also deposit its annual accounts at the Registro Mercantil, a separate obligation from the tax filing. A dormant SL that holds a single property and earns no income still files Modelo 200, even if the return shows a zero base. The filing obligation attaches to the entity’s existence, not to its profitability.

How is the SL classified as patrimonial and why does it matter?

A sociedad patrimonial is an SL whose assets are more than 50% values or property not affected to an economic activity, or whose revenues come mainly from passive sources. The classification matters because a patrimonial SL loses access to the micro-enterprise reduced rate scale and the new-entity 15% rate. It pays the full 25%.

For a foreign buyer who sets up an SL to hold a single Costa del Sol villa, the company is almost always patrimonial. The property is the dominant asset, no economic activity is being carried on in the sense the tax authority means (a letting business with staff, a development operation, or a trading concern), and the income is passive. The buyer should plan on the 25% rate from day one and treat any relief as a bonus that may not materialise.

What happens when the SL distributes a dividend to a non-resident shareholder?

When the SL pays a dividend to a shareholder who lives outside Spain, the distribution triggers a withholding under the Impuesto sobre la Renta de No Residentes (IRNR). Article 25 of the consolidated IRNR text (Real Decreto Legislativo 5/2004, BOE-A-2004-4527) sets two rates:

• 19% for shareholders resident in the EU or EEA, where there is effective information exchange
• 24% for shareholders resident outside the EU and EEA

The SL withholds the tax and pays it to the Agencia Tributaria on behalf of the shareholder. The shareholder can then claim a refund or credit in their home country under a double taxation agreement, which may lower the effective rate below 19%. The shareholder files Modelo 210 to claim the treaty benefit, not the company. Our Modelo 210 rental income guide covers the mechanics of the non-resident filing.

Shareholder residence	IRNR withholding on dividend	Treaty override
EU or EEA (effective exchange)	19%	Possible under specific DTA
Non-EU, non-EEA	24%	Possible under specific DTA
Spain (resident shareholder)	No IRNR withholding	IRPF applies instead

Is the SL exposed to the gravamen especial on real estate?

A separate levy, the gravamen especial sobre bienes inmuebles de entidades no residentes, applies a 3% charge on the valor catastral of property held by entities resident in a jurisdiction classified as non-cooperative. The Agencia Tributaria manual sets out the rules, filed on Modelo 213 by the end of January each year.

A Spanish-resident SL is never subject to this gravamen, regardless of where its shareholders live. The charge targets entities themselves resident in a non-cooperative jurisdiction. If a UK or Norwegian buyer holds Costa del Sol property through a Spanish SL, the company is Spanish-resident and the 3% levy does not apply. If the same buyer held the property through a British Virgin Islands company, the 3% charge would bite annually. This is one reason why holding through a Spanish SL, despite the 25% corporate rate, can beat holding through an offshore company that avoids corporate tax but pays the gravamen every year.

How does the SL compare to individual ownership on tax?

The choice between holding personally and holding through an SL turns on the buyer’s use pattern, the holding period, and the succession plan. Our ownership structure comparison breaks this down across all four routes. On tax alone, the headline trade is:

Dimension	Individual non-resident	Spanish SL
Annual tax on empty home	Modelo 210 imputed income (1.1% or 2% of cadastral value)	No imputed income; nil base if no rent
Annual tax on rental income	Modelo 210 at 19% (EU) or 24% (non-EU) on net rent	IS at 25% on net taxable income
Deductions	Limited (mortgage interest not deductible for non-residents)	Full business expense deductions
Dividend repatriation	Not applicable (individual owns directly)	19% or 24% IRNR withholding
Compliance	One Modelo 210 per year	Modelo 200, annual accounts, registry deposit, gestor

The SL route adds a second layer of tax on distribution: the company pays 25% on its profit, then the shareholder pays 19% or 24% on the dividend. For a rental property generating steady income, that double layer often outweighs the deduction advantage. For an empty hold property used personally, the absence of imputed income can offset the compliance cost, particularly if the cadastral value is high. Our buying through a company guide covers the purchase-stage mechanics.

What about international transparency and the exit?

Article 100 of Ley 27/2014 sets the transparencia fiscal internacional regime, which imputes the income of a foreign subsidiary to a Spanish parent if the parent holds more than 50% and the subsidiary’s effective tax rate is below 75% of the Spanish rate. For a Spanish SL holding Spanish property, this does not apply because there is no foreign subsidiary. It becomes relevant if a Spanish SL holds property through an offshore sub-holding, a structure that invites scrutiny.

On exit, if the shareholder sells the SL shares rather than the property, the transaction is a share sale, not a property sale. The buyer pays no ITP on the property because the property does not change hands. The selling shareholder pays capital gains tax in their own jurisdiction on the share value uplift. This is a structural advantage of the SL route for a property that has appreciated significantly, and our mortgage foreclosure guide explains what happens if the company cannot service its loan.

This guide is general information, not legal or tax advice. Rules change and individual circumstances differ. Verify current requirements with an independent lawyer (abogado) or tax advisor (gestor/asesor fiscal) before acting.