You can save tax on your purchase of Spanish property by setting up an 'SL' (company); here's how it works. Many of the elements of this are similar to the 'individual as company' tax law in the UK and elsewhere. Elect to pay your income tax in Spain - if you are already paying income tax in your own country, then the level of Spanish income tax will be reduced, thus avoiding double taxation. Set up your SL, and it then becomes your employer, taking you down from being a higher rate taxpayer on 42% to paying corporation tax at 30% (which will rise to 35% after three years).
The big saving is on the tax deductible items, among them housing, food, use of the car. They are rather more generous than under UK and US company law, though do bear in mind that legislation changes - so check the up to date position before you go down this route. You also have the option of putting cash away in the company's reserve account, a further tax saving.
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