Property Law in Spain

When buying property anywhere in the world, trying to deal with the legal transactions yourself without expert support is a big risk. These risks will increase in a situation where you’re buying property in a country with different laws, especially if you don’t speak the language yourself.

An English-speaking Spanish property lawyer, such as our international Spanish law specialists, can be invaluable. Buying a home is a big investment in any country, so you’ll want to make sure that you get a deal that works for you, with legal guidance to help you minimise the risk of future issues. With power of attorney, a Spanish lawyer can act on your behalf, so you don’t even have to travel.

Just as prevention is better than cure in medicine, so is prevention better than correction in law. Avoiding scams, closing loopholes, and doing everything by the book can save you a world of potential trouble. The financial savings compared to corrective costs, and the peace of mind you’ll achieve from knowing that every ‘i’ is dotted and every ‘t’ is crossed, far outweigh the legal fees.

Yes, you can buy off-plan property in Spain, but this does come with a higher risk than buying a re-sale property. The process is also very different when working with developers. You’ll need to request proof of their licences and planning permissions, and scrutinise Land Registry records.

You must also be sure that the developer has adequate insurance and that the bank guarantee offers a higher level of individual protection, not collective for the whole development. If you’re financing the Spanish off-plan property with a bank loan, you’ll need to set up stage payments.

Before signing the title deed, arrange a property survey and request copies of certification to prove that the work has been completed according to the plans and in line with building regulations. If it has not, you’ll have the option to extend the deadline or cancel the contract and reclaim your deposit. You should seek the support of an independent solicitor to seek redress in such cases.

Not every property purchase in Spain will follow the exact same path, but there are several things you should be sure to check before committing to a purchase. This is where having a Spanish property lawyer to advise you can help, as we’ll know exactly what to look out for. Here is a basic checklist to help make sure that the property you’re buying in Spain is completely above board:

⦿ Location and planning permissions

• Is the property a legal build, registered with the local town hall?
• For off-plan purchases, does the area have any building restrictions?
• Is the property or plot affected by specific laws for rural or coastal land?

⦿ Land Registry details

• Do the details of the property or land for sale match the registered information?
• Are the boundaries and square metre measurements accurate?
• Is the seller the registered owner of the property?

⦿ Debt information

• Are there any outstanding debts or charges on the property?
• Does the previous owner have receipts for property tax (IBI) payments?
• Do they also have receipts for utility bills paid up to date?

⦿ Evaluation by a chartered surveyor

• Is the sales price reflective of the actual property value?
• Are there any structural issues with the condition of the building?
• Do any ‘snags’ require repairs or replacements before proceeding?

It’s crucial to know the cadastral value (the rateable value determined by local authorities), which determines your property tax rate. Specialists can look over everything with an expert eye to ensure that all the details match up, and that any issues are corrected before you go ahead with a purchase.

When buying a property anywhere, it’s a good idea to obtain a property survey to pick up on any defects. This applies when purchasing real estate in Spain, too. A professional survey will help to identify issues that could affect the property’s value, which in turn could affect your mortgage. Highlighting what the seller needs to fix or negotiating the price can prevent nasty surprises later.

Here at Manzanares Lawyers, we can help prospective buyers with conveyancing so you can confidently go ahead with the purchase. A Spanish property assessment involves a detailed report on the property’s value, physical condition, legal registrations, and debt history (e.g. council tax, utility bills, and community fees). We’ll put your interests first and check all the paperwork for you.

Once you know everything is above board and all the documentation is in order, we can help you to close the sale and complete the final administrative steps, including property tax management. With our help, you should also be able to secure a suitable Spanish mortgage (if required). If you think you could benefit from these comprehensive services, feel free to get in touch with our team today.

Buying a Spanish property can be overwhelming if you’re not familiar with the language. You don’t have to know everything about Spanish property law when you have expert lawyers like ourselves to handle the details for you, but it can be beneficial to learn what the following terms mean:

Of course, when searching property listings that may not always be in English, it can also help to know a few words for the property and amenity types you’re interested in. Here are some examples:

If you would rather handle Spanish property transactions in English and leave the translating to a Spanish lawyer, that’s fine, too. With our in-depth understanding of both UK and Spanish property laws, you can trust Manzanares Abogados to help you buy or sell Spanish property without a hitch.

There are several state taxes and local taxes you can expect to pay when buying Spanish property. If it’s a new property, you’re likely to owe stamp duty at 0.75% to 1.5%, and if it’s a resale, you’ll have to pay a transfer tax (ITP) of 6% to 11%. Once you become the legal owner, you’re responsible for paying the annual Spanish property tax (IBI), which is between 0.4% and 1.3% of the rateable value.

If your property and/or other Spanish assets are high-value, you may be liable for annual Spanish wealth tax (IP) above a certain amount, between 0.2% and 3%. This progressive tax applies to assets like cars, jewellery, art, and savings in the country, as well as properties. If you decide to sell your property in Spain, you’ll have to pay Spanish capital gains tax on the profits, at a 19% to 24% rate.

Similarly, you’ll have to pay 19% to 24% Spanish income tax (IRNR) on any income above a regional allowance. This means that if you make a profit from renting out your property as a holiday home when you aren’t staying there yourself, you must pay income tax on that money. Don’t forget to check if there’s a double taxation agreement between Spain and your primary country of residence.

If you own a property in Spain, then it follows that you should have a Spanish will to name the beneficiaries of your estate and assets in Spain. Spanish inheritance law doesn’t differentiate between foreign or native property owners, so you can write a clause into your Spanish will stating that you want to distribute the inheritance in accordance with the laws of your home country.

This is helpful for retirees and other expats whose children and grandchildren are often still living in their country of origin. Of course, it helps to have an enforceable will written in that country, too. If you don’t specify the way you wish your property to be distributed when you pass away, it defaults to Spanish ‘forced heirship’ rules, transferring two-thirds to a surviving spouse and/or children.

Sometimes known as succession tax and gift tax, the rules for paying tax on inherited assets in Spain may be different to your country of origin. There are varying exemptions and allowances from region to region, so personal allowances and property allowances may be higher or lower, depending on where the deceased was living. Here in Andalucía, there is a generous estate allowance of €1 million, and beneficiaries will only have to pay 1% inheritance tax on any value above this.

As Spain is a member of the EU, citizens of EU countries can visit Spain for short stays without a visa. However, since the UK left the EU, and the Brexit transition period ended in 2021, British owners of second homes in Spain are subject to the ’90 day rule’ whenever they want to spend time there.

Travelling to Spain on a Schengen visa is usually the easiest method for non-EU citizen holiday home owners wanting to spend some time in the sun. These visas don’t allow you to work, study, or reside permanently in Spain, but they let you travel freely throughout the Schengen area for a limited time.

This means that, if you’re a British national, you can only stay in your Spanish holiday home for a maximum of 90 days out of every 180-day period – or 6 months out of each year, split into 3-month periods. Remember that the 90-day limit applies to travel throughout the entire Schengen area, too.

If you’ve spent 90 days in Spain, you cannot spend time in any of the 26 Schengen countries during that 180-day period. Overstaying your visa anywhere in the Schengen zone could result in you being fined, deported, or even banned from re-entering. This shouldn’t be a problem for holidaymakers not looking to spend more than 3 months in Spain at a time, or more than half the year in Spain.

This mainly affects those wanting to spend more of their retirement in Spain, or simply to live there for longer periods throughout the year. If you want to avoid the ‘90-180 rule’ without applying for permanent residency in Spain, you can apply for a Spanish non-lucrative visa. This gives you the right to reside in Spain for up to 1 year, though you cannot work or carry out professional activities.

Yes – whether you want to invest in Spanish real estate to generate income, or simply rent out your holiday home in Spain when you aren’t staying there, you can do so. Of course, after purchasing a property to let, you must continue to comply with Spanish housing laws for that particular region.

There are strict regulations for letting residential property in Spain, for both short-term and long-term rentals. Long-term letting is covered by national law, while short-term tourist lets are regulated by regional law. If you’ll be temporarily renting your Spanish property to tourists, then you’ll need:

• ⦿ Tourist Licence (rental permit)
• ⦿ Licence of First Occupation (certificate of habitation)
• ⦿ Up-to-date energy certificate

When committing to a buy-to-let in Spain, your property must meet the stringent requirements set out by the municipal authorities before you can legally rent it out. These include specific technical stipulations regarding heating, ventilation, light, and furnishing – plus standard hygiene, safety, and first aid practices and supplies. You can learn more about housing laws in Andalucía on our website.

Not only will you have to contend with local concerns such as hiring a rental management agent and potentially adhering to community of owners’ rules (Comunidad de Propietarios), but any income generated through your Spanish BTL must be declared to the authorities. If you don’t report rental income on a Spanish tax return, you could be subject to costly fines and lose your rental permit.

Yes, we can. Whether you want a property you no longer use taken off your hands, you invested in the property specifically to sell it for a profit, or you’re upgrading to a new property and need to sell the old one to raise funds, Manzanares Lawyers can assist you from start to finish, or with any stage.

Whatever your reasons may be for selling property in Spain, there are several legal obligations that can complicate things. For example, you’ll need to plan for outstanding debts, mortgage transfers, and Capital Gains Tax, in addition to providing legal copies of required documentation. Spanish property experts like ourselves can help you with completing paperwork and managing finances.

Having a property lawyer in Spain to handle enquiries from potential buyers on your behalf and to oversee meticulous contracts can take the stress out of the situation, especially if you’re a non-resident – after assigning power of attorney in Spain, you won’t even have to be there in person.

Our advisers can help you account for property sale costs in Spain, including paying off remaining bills and taxes, and calculate your tax liabilities (potentially 19%-24% of the profits from the sale).