Spanish Property Law
We are here for your Spanish legal needs, Your Spanish Solicitor in Spain offer expert guidance. Whether it’s property transactions, establishing or acquiring a business in Spain, managing your Spanish will, or inheriting property, our extensive experience ensures you receive adept assistance through the intricacies of Spanish law.
When purchasing property in Spain, it’s important to be aware of the legal requirements. Foreign citizens need a financial property number, and it’s recommended to seek expert legal advice from an English-speaking Spanish real estate lawyer. The process involves several documents, including the deeds to the property and proof of payment for local taxes and fees
Buying Property in Spain
Planning Law in Spain
Legal considerations
Finance
The Spanish Buying Process
Start your search online
Sites like mediterranean.realestate can be helpful for seeing what is available & getting in touch with estate agents.Go property hunting
Keep an open mind & make notes – you’ll quickly forget what you’ve seen.
Apply for your NIE number
This can take time, so do it as soon as possibleOpen a bank account
Choose an independent solicitor Make sure they speak your language. The Spanish word for solicitor is Abogado.
Check the legal status of the property
Make sure it has the correct permissions for sale, no charges against it and that the person selling it is the legal owner – this is why you got that solicitor!Agree a price
Agree who pays which taxes & fees Sometimes it’s not obvious, so pay close attention.
…And pay your deposit Your deposit is there to protect you too. It will be lost if
you don’t proceed, but you should get double back if the seller pulls out..
Put the champagne on ice!
Go to the notary* You will need to sign the title deed and pay the rest of the money.
Pay taxes
Register the purchase with the land registry.
*The notary (notario) is a public servant who checks everything is legal with the sale.
Relocating your family to Spain
Moving to a different country is one thing but taking your family along with you adds extra pressures to the whole process, giving you far more to consider than if you were making the move alone.
When considering location, you’ll need to think about the kinds of things your children enjoy, the availability of playmates and access to sandy beaches and outdoor activities. The Spanish way of life can offer many health benefits to children growing up in the fresh air and warm sunshine.
If you’re making a move to Spain with children in tow, the availability of good local schools is likely to be an important factor. Entrance to Spanish state schools is generally dependent on catchment area so it is worth discussing local schools with your agent when viewing properties.
The first step of applying is to register at your local town hall to get the document known as empadronamiento – this proves that you are resident in the area. The enrolment process varies by region and by school but may involve interviews, proof of ID and proficiency tests. Before leaving your home country you are advised to contact the school and Spanish embassy for details of enrolment processes as they are prone to change regularly.
State schools in Spain are thought to be of a reasonable quality, although the teaching language will be Spanish. If you have young children or you plan to stay in Spain for a long time this can be a great way for children to become immersed in the language, but for older children an international school may be preferable – you can find out more from the International Schools Service.
You’ll find that most urban centres have a good selection of international schools although fees may be high and they are often located on the outskirts of cities. Make sure you factor this into purchase and budget decisions.
You will be able to drive in Spain using your driving licence as long
as it remains valid. However, once it expires, is lost or stolen, you should renew it in Spain. If you commit a traffic offence in Spain you will be required to exchange your licence at that point.
You can find out how to do this from the Dirección General de Trafico website, available in Spanish only.
Importing your car
If your car is registered in your home country and you spend more than six months of the year with it in Spain, you will need to register it with the Spanish authorities. This will involve changing the licence plates, as well as the headlights and possibly tail-lights. You may be liable for any or all of registration tax, road traffic tax or VAT. Cars can be expensive in Spain so it is worth doing the figures and working out what works best for you.
In order to take your pets with you
to Spain they will need their own passport, which can take up to eight months to process due to strict rules around medical conditions. Once they reach Spain, your pet will need to be microchipped so it can be returned to you if lost.
Local vets are easy to find and will be able to request medical records from your home country so that any treatment / vaccinations etc. can be continued.
If you are moving from an EU country you should apply for a European Health Insurance Card (EHIC) which will be free and easy to get in your home country. This will cover you
for immediate medical treatment for the first 3 months (anything that is not required immediately will be chargeable).
When you become a Spanish resident the EHIC no longer applies so it is worth looking into the various paid plans available. As with most health or life insurance policies the premium will increase the later in life you take it out, so bear this in mind.
In case of emergency
Emergency medical care is freely available in all EU member states. Request a public ambulance and ask
to be taken to the nearest state-run hospital. This will ensure your journey and treatment are covered by your EHIC card or insurance policy.
In private hospitals you will find English speaking staff and perhaps those who speak other international languages, however in public hospitals this will not always be the case. Often an interpreter will be available at a charge to you
of around €12 per hour. You should be aware that in some states this is a requirement as it can help ensure a quick diagnosis.
From the age of 16 and above, you will need to pay for all dental work in Spain. However prices are generally cheaper than other Northern European countries. Dental work is not included as part of Spain’s National Health Service so you will either need to pay for it or claim on your private health insurance.
Dentists who speak other languages can be found relatively easily, particularly in popular expat areas.
Retiring in Spain
If you have worked and paid social security contributions in Spain for more than 15 years you may be entitled to at least the minimum state pension. You may even be able to count contributions made in other EU member states as well as transfer private pensions earnings through an overseas pension scheme. Pension age is currently 65 years although
it is set to rise. To apply for your Spanish pension you will need to visit your local INSS (Instituto Nacional de la Seguridad Social).
You will need to check with the tax authorities in your home country to see how moving abroad will affect your state pension and how to draw any income you are entitled to. Likewise, contact any private pension providers to update them on your new arrangements and see whether moving will affect it.
If you need a carer it may be possible to find one, although resources are limited. A local carer is likely to be unqualified and only visit for a small amount of time each day.
In order to qualify you will need to be on the padron (list of residents) of a town that has at least 20,000 people living there.
Private nursing homes come at a cost. This can range from €1,500 – €4,000 per month. Occasionally there may
be a state-funded nursing home available in your area. These are available to EU citizens, although Spanish nationals do get priority and you would be expected to contribute towards costs.
Until recently we saw a trend for the elderly to return to their home country if they felt they needed care. Spanish families tended to care for their own relatives meaning that provision for elderly living was not a priority. As times have changed, however, we’re seeing the building of more retirement homes and communities particularly aimed at expats, meaning there is likely to be more choice in the future.
The Spanish healthcare system operates with a combination of private and public options. The Spanish National Health Service (or Sistema Nacional de Salud
– SNS) controls around 40% of hospitals. These can be accessed via payments you make into the social security system as part of your taxes.
Buying a holiday home in Spain
If you are considering buying an old building in need of renovation, we say proceed with caution. Often ruined buildings can be bought extremely cheaply as Spanish natives tend to favour newer apartments and villas. The downside of this is the price the property will fetch after the work has been done is unlikely to reflect the time and money that has gone into it.
That said, local builders will often work for a very reasonable cost so if you have your heart set on a project and will enjoy it then go for it – just do your research first and have a clear budget to stick to.
Get estimates of work required before proceeding with the purchase and add a contingency of 10% to the figures you receive as it is not unusual for costs (and timescales) to escalate.
If you will be making alterations externally on the building you will need to obtain planning permission and the right building licence (licencia de obra) from your town
hall, depending on the type of work you want to do. Once they have the details, the town hall will work out the tax payable to carry out the renovation. This will usually be 2-6% of the cost of the project. If you make large scale improvements, be aware that you need to declare these or face a large capital gains tax bill when you come to sell.
If you will not be around to oversee the work, make sure you employ an architectural engineer, or similar,
to oversee the project to prevent it dragging on or remaining unfinished. This may cost around 10% more but will be ultimately worth it.
Land in Spain can be categorised as urbano and rustico. Urbano
land is set aside for development, rustico isn’t. But that doesn’t mean it’s impossible to get permission to build on it. The decision of planning permission ultimately sits with the town hall.
The town hall will issue a Town Planning Certificate, cédula urbanística or certificado urbanistico specifying building use and type allowed and also stating what percentage of the plot you are allowed to build on. You will need to check the local area for examples of normal building heights, colours and styles and will be expected to stay in keeping with these.
If you are considering renting out your property for periods of the year, you’ll need to consider who will look after it while you’re not there. Finding a reliable local agent to manage the property for you will be vital to make sure those staying in your holiday let have a good experience.
A property management company can offer a number of services including:
Holding a key
Responding to problems from those staying at the property
Maintaining the outdoor areas such as the garden and / or pool
Arranging changeovers and cleaning
And even taking care of utilities bills
Ask friends, neighbours and other expats for recommendations –
a good property management company is worth its weight in gold.
Legal considerations
Put simply this is an identification number for foreigners. You will need it for anything that involves an official process in Spain so it’s worth applying as soon as possible to avoid delays. You will need the NIE number before signing the Title Deed for your property, which in practice means applying at least one month before you expect this to happen.
Once all checks have been completed and details of the sale have been finalised, a Private Purchase Contract will be drawn up. By signing this and paying a more substantial deposit you will commit to purchasing the property. If the seller pulls out after this stage they will be liable to return twice the deposit you paid.
This is a simplified version of the Title Deed outlining what is registered at the Land Registry, who owns the property and whether there are any monies owing on
it. The Nota Simple should be available from your estate agent, and you (or your solicitor) must review it before signing
a Reservation Contract and paying the associated fee.
This gives your legal representative permission to act on your behalf in terms of making payments and singing deeds. This is particularly useful if you currently live in a different country.
At the point you make an offer on a property you may be asked to sign a Reservation Contract. This will mean the property is taken off the market and the seller is bound to sell it to you at the stated price. You will be asked to pay
a deposit which you will lose if you pull out of the sale, unless the sale cannot proceed for legal reasons.
The signing of the Escritura completes the sale and must be done in front of a notary. This will include the payment process and details of all final arrangements. After making this payment you will receive the keys to your new property.
The Land Registry must be informed of the change of ownership within 10 days. Your notary will be able to arrange this if you request it.
As the purchaser you have the right
to choose which notary you will use but it is worth making sure they are local as you will need to visit in person unless you rely on Power of Attorney.
A notary is employed by the
Spanish government to certify
legal documents, in this case those associated with the property sale. The notary will not normally get involved until the end when he will carry out a few basic checks, arrange the signature of the title deed (or Escritura) and sometimes register the property.
If you plan to let out your home on a short-term basis you must make sure that you are acting in accordance with Spanish laws. There are restrictions in many areas, not just on letting a private residential property but also marketing it to tourists. Rules will vary depending on the region in which the property is located and fines can be significant if you are found to be acting illegally.
If you plan to buy a community property, make sure you check whether there are any rules that might stop you from letting the property out.
Things to remember:
You are required by law to obtain an energy efficiency certificate.
You should notify your insurance company of your intention to let the property.
You must declare your rental income to the Spanish authorities.
You will need to bear in mind the cost of insuring your property in Spain on an ongoing basis. The cost of this will vary greatly depending on the type of property and what you plan to use it for.
Making a legally binding will in both your home country and the country you’re living in will protect your family and your assets. According to current EU laws you can choose between
the laws of the two countries when it comes to dividing up your estate. You should seek legal advice as rules can change frequently.
Legally you do not have to appoint a solicitor when buying property
in Spain. However, for a relatively small fee it can be worth it to save the headaches of bureaucracy in a foreign country. A solicitor can save you money, time and stress.
