INSIGHT: Spanish Tax Authority Looks at Foreign Property Owners

International tax barrister Leon Fernando Del Canto highlights Spain’s growing crackdown on foreign-owned properties held through complex international structures—especially those used by UK residents. Thousands of high-value homes are owned through multi-layered companies and trusts, many based in offshore jurisdictions, and Spain is now using new legal tools and the UBO Register to investigate them.

Non-resident tax obligations, corporate compliance failures, trust arrangements, and outdated structures created before 2018 are now under strict review. Property owners and their advisers face increased risk of fines and even criminal exposure if they fail to update structures, declare rental income, or meet company-law requirements.

Spain’s message is clear: foreign property-owning structures must comply with modern transparency and anti-avoidance rules—or face enforcement.