Investing via a Spanish S.L. How the structure works

When you invest with Dutch Value, you invest through Dutch Value Investments S.L. Those three letters often raise questions for Dutch investors. What exactly is an S.L.? Why do we use it? What does it mean for you? In this article, we break it all down.

What is an S.L.?

S.L. stands for Sociedad de Responsabilidad Limitada. It is the most common form of business entity in Spain and is comparable to a Dutch private limited company (B.V.). An S.L. is an independent legal entity with its own rights and obligations. In principle, the liability of the shareholders is limited to their capital contribution.

An S.L. is established by a notarial deed and registered in the Spanish commercial register, the Registro Mercantil. This ensures the company is publicly registered and verifiable.

Why does Dutch Value work with an S.L.?

Our projects are located in Spain. We buy, renovate, and sell villas on the Costa del Sol. It is therefore logical to operate through a Spanish company, which acts as the party responsible for the purchase, construction, and sale.

• Locally anchored. A Spanish company deals directly with local notaries, municipalities, contractors, and buyers.
• Clear legal framework. Real estate, contracts, and the company all fall under the same legal system. This avoids cross-border ambiguity.
• Straightforward for you. You invest in a project run by the company, with pre-defined agreements. You do not need to purchase or manage Spanish real estate yourself.

What does this mean for you as an investor?

At Dutch Value, you do not become a co-owner of the property. You invest in the project, and your participation is recorded in a notarial agreement under Spanish law. This agreement outlines the chosen model, the duration, the method of payout, and the risks.

Your capital is project-specific. It is tied to a particular project and cannot be withdrawn early, unless contractually agreed otherwise. For the fixed-interest model, mortgage security on the property can be discussed.

What about taxes?

The S.L. is liable for tax on its own profits in Spain. How your returns are taxed depends on your personal situation, your country of residence, and the chosen model. Tax treaties exist between Spain and countries such as the Netherlands and Belgium to prevent double taxation.

Because every situation is different, we do not provide tax advice. We always recommend consulting your own tax advisor before investing. We are happy to explain the structure personally to you and your advisor.

Transparency as a starting point

A structure is only as strong as the people behind it. That is why every project proposal includes a detailed dossier with a risk section, timeline, and sensitivity analysis. During the project term, we provide quarterly progress reports.

Do you have questions about the S.L. structure? Schedule a personal meeting, and we will walk through the setup with you.

This article is general in nature and does not constitute legal or tax advice.