Buying property through a Spanish company can be the right solution for certain investors, rental businesses, and property portfolios. However, owning property through a company also brings ongoing accounting, tax, and compliance obligations that differ significantly from private ownership.
This guide explains the annual financial responsibilities of a Spanish company, the bookkeeping requirements, and the services provided by Mojo’s Finance Department to keep your company fully compliant.
Key takeaway: Every Spanish company must maintain proper accounting records and submit annual tax filings, regardless of whether it generates income. Mojo’s Finance Department provides a complete bookkeeping and compliance service exclusively for House of Mojo clients, covering the essential annual obligations of a Spanish property-owning company.
What Financial Obligations Does a Spanish Property Company Have?
From the moment a Spanish limited company (Sociedad Limitada or SL) is established, it becomes subject to ongoing financial and accounting responsibilities.
These include:
- Maintaining double-entry accounting records
- Keeping and organising all company invoices and financial documentation
- Filing the annual Corporate Tax Return (Modelo 200)
- Filing Modelo 347 where applicable
- Depositing annual accounts with the Mercantile Registry
- Maintaining valid digital certificates for communication with the Spanish Tax Agency
These obligations apply regardless of whether the company has generated income during the year.
Failure to comply can result in penalties, even for inactive companies.
What Does Mojo’s Finance Department Include?
Mojo’s Finance Department offers a complete bookkeeping and compliance package exclusively for House of Mojo clients.
Our annual service includes:
- Accounting software licence and setup
- Monthly bookkeeping
- Invoice processing
- Preparation and submission of Modelo 200
- Preparation and submission of Modelo 347 where required
- Accurate accounting records maintained throughout the year
- Financial documentation prepared for banks, auditors, or future buyers
Annual bookkeeping package: €1,278 per company (excluding 21% IVA).
What Additional Company Services May Be Required?
Depending on your company’s circumstances, additional services may include:
Company Power of Attorney
A Company Power of Attorney allows Mojo’s Finance Department to communicate directly with the Spanish Tax Agency and manage tax procedures on your behalf.
Fee: €180 (excluding IVA)
Digital Certificates
Spanish companies require digital certificates to submit official tax filings electronically.
Initial setup includes certificates for both the company and its administrator.
- Initial setup: €280
- Company renewal (after 2 years): €100
- Administrator renewal (after 4 years): €180
(All prices exclude IVA.)
External Financial Review
For owners seeking additional reassurance, an independent external consultant can carry out a year-end review of the company’s financial records.
Fee: €300
Additional Accounting Services
Where work falls outside the standard bookkeeping package, additional accounting assistance is available.
Hourly rate: €150 per hour
Can You Use Company-Owned Property Personally?
Yes, but this requires careful planning.
If shareholders use a company-owned property for private purposes, Spanish tax rules require that use to be valued at market rates.
Without the appropriate documentation and accounting treatment, both the company and its shareholders may face additional tax consequences.
Proper planning, documented usage agreements, and accurate bookkeeping help ensure compliance with Spanish regulations.
When Does Buying Through a Company Make Financial Sense?
A company structure is often appropriate when purchasing property for:
- Rental businesses
- Multiple investment properties
- Property development projects
- Corporate ownership structures
For a single holiday home used primarily by its owners, the annual administration and accounting costs may outweigh the potential tax benefits.
Choosing the right ownership structure should always be based on your long-term investment strategy rather than tax assumptions alone.
Frequently Asked Questions
Does My Company Still Need to File Tax Returns If It Had No Activity?
Yes.
Even inactive companies must continue filing annual Corporate Tax Returns (Modelo 200) and submit annual accounts.
Can Mojo Take Over a Company Already Managed by Another Accountant?
Yes.
We regularly assist clients in transferring bookkeeping from another gestoría or accountant. The process typically requires the company’s accounting records, digital certificates, and a Power of Attorney.
What Is Modelo 347?
Modelo 347 is an annual informational declaration reporting transactions exceeding the legal threshold with individual Spanish suppliers or businesses during the year.
It commonly applies to companies with significant community fees, renovation work, utilities, or contractor expenses.
Does the Annual Package Include My Personal Tax Returns?
No.
The bookkeeping package covers the company’s accounting and tax obligations only.
Personal tax returns and declarations, including Modelo 210 for privately owned property, are managed separately.
Related Guides
- Should You Buy Spanish Property Through a Company?
- What Are the Taxes When You Sell Property in Spain?
- Finance Department