Property Financing for Companies in Spain
Are you planning to purchase property in Spain through a company, holding structure or investment entity? Financing a real estate acquisition through a legal entity requires a different approach from a traditional personal mortgage.
At LG Finance, we assist Spanish and international companies seeking property financing in Spain, with solutions adapted to their legal structure, financial position and investment objectives.
Can a Company Obtain Property Financing in Spain?
Yes. Spanish financial institutions may provide financing for property acquisitions made by companies, subject to the characteristics of the transaction and the lender’s criteria.
Eligible structures may include Spanish limited liability companies (SL), French civil property companies (SCI), holding companies and other corporate entities.
However, financing is not automatically available to every type of company. Banks assess the legal structure, financial capacity, ownership, purpose of acquisition and guarantees offered.
How Much Can a Company Borrow for Property in Spain?
The amount available depends on the nature of the property, the intended use, the company’s financial situation and the lender’s risk assessment.
For certain investment or corporate property transactions, financing may be more conservative than for a residential mortgage taken out by an individual. Some operations may be assessed around 50% of the property’s value, although this is not a universal limit or a guaranteed offer.
The company must generally demonstrate sufficient equity, available funds and repayment capacity. Additional guarantees may also be requested.
Requirements for Corporate Property Financing
When analysing a financing application submitted by a company, lenders may review:
- The company’s legal structure and ownership.
- Its financial statements and operating history.
- Turnover, profitability and available cash flow.
- Existing debts and financial commitments.
- The intended purpose of the property acquisition.
- The property’s valuation and characteristics.
- The financial position of shareholders or guarantors, where applicable.
Recently established companies and entities with limited operating history may face additional requirements.
Documents Required for a Company Mortgage
Corporate financing applications generally involve more extensive documentation than individual mortgage applications.
Depending on the company and its country of incorporation, documents may include:
- Certificate of incorporation or commercial registry extract.
- Articles of association and company ownership information.
- Identification of directors and beneficial owners.
- Recent annual accounts and financial statements.
- Corporate tax returns and other relevant tax documentation.
- Business bank statements.
- Information about existing loans and liabilities.
- Property details and purchase documentation.
- Evidence of available funds and proposed guarantees.
Foreign companies may be required to provide translated, certified or additional legal documents.
Property Financing for French SCI and International Companies
International investors sometimes choose to acquire property in Spain through a French SCI, a Spanish SL or another corporate structure.
Each structure presents different legal, financial and tax considerations. The availability of mortgage financing depends on the bank’s acceptance of the entity and the characteristics of the transaction.
LG Finance helps organise and present corporate financing applications, taking into account the company’s structure and the requirements of the Spanish lending market.
Legal and tax implications should be reviewed with qualified advisers before choosing the acquisition structure.
Why Choose LG Finance for Corporate Property Financing?
With more than 22 years of experience in mortgage financing, LG Finance provides personalised support for complex property transactions involving companies and investment structures.
- Preliminary assessment of the company’s financing profile.
- Analysis of the acquisition and proposed guarantees.
- Preparation and organisation of corporate documentation.
- Presentation of the application to suitable banking partners.
- Support throughout the financing process.
Our objective is to help companies approach property acquisitions in Spain with a clear financing strategy and realistic expectations.
Apply for Corporate Property Financing in Spain
Are you considering purchasing real estate in Spain through a company, SCI or holding structure?
Contact LG Finance to discuss your project and assess the financing possibilities available for your company.
We assist clients throughout Spain, particularly in Barcelona, Madrid, Marbella and the Costa del Sol.