When buying Spanish property, a basic understanding of the law surrounding the sale and purchase of Spanish property is essential to avoid unnecessary stress and unexpected costs. The Spanish conveyancing process differs significantly from the UK and non-Spanish nationals may face additional challenges in areas such as obtaining an NIE number and paying taxes, or even opening a Spanish bank account.
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Whether you're looking to buy property, invest in a new build property, handle aspects of commercial property, or explore rental income opportunities, having experienced Spanish property lawyers by your side is vital.
We guide clients through buying and selling Spanish property, we address complex elements of Spanish law, and we ensure that every aspect of the process is handled smoothly.
1. Understand the Role of the Estate Agent
Estate agents in Spain commonly act for the seller, not the buyer. Once you’ve found a property you’re interested in, consult an independent Spanish property lawyer before agreeing on a purchase price and certainly before you make any payment to the seller or to the estate agent. This ensures that you’re fully informed and protected throughout the process.
2. Hire a Specialist Spanish Property Lawyer
While estate agents may suggest you don’t need a lawyer to purchase Spanish property, this advice often leads to unnecessary complexities. An experienced Spanish property lawyer will help you navigate cultural and legal differences, ensuring that the sale and purchase complies with Spanish property law and safeguarding your investment.
Your lawyer will also be able to advise you on other legal services in Spain, such as drafting wills and your liability to tax in Spain on an ongoing basis.
3. Choose the Right Lawyer
Select a lawyer with proven experience in the Spanish conveyancing processes. Their fees should be fair, but avoid basing your choice solely on cost. Your lawyer doesn’t need to be local to the property, provided they understand the specific laws and legal processes of the area.
4. Know the Total Costs of Buying Property
Ensure that you understand all costs associated with the purchase. These include taxes, notary’s fees, land registry fees, and your lawyer’s fees. Never rely solely on the estate agent’s advice—consult your lawyer to get a full breakdown of the costs.
5. Secure Third Party Finance Before Committing
If your purchase depends on securing a mortgage or other funding, confirm the finance is approved before signing any agreements. Delays or issues with third party finance can jeopardise your purchase.
6. Be Cautious with Deposits
Avoid paying a deposit until your lawyer has conducted a thorough review of the property and has provided you with a report on which you can base your decision to proceed with the purchase. Although a small deposit may appear to protect your position, it does not and is extremely likely to be non-refundable, so independent legal advice on any documentation that you sign and any payment that you make is essential in advance.
7. Consider a Surveyor
For older properties, hiring a qualified surveyor can uncover potential issues before you buy. Although uncommon in Spain, a survey provides peace of mind, especially if there are visible concerns about the property’s condition.
8. Understand the Community of Property Owners
If the property is part of a development, such as an apartment, or a house in a development, ensure that your lawyer reviews the minutes of the last annual general meeting of the community of property owners. This can reveal issues like unpaid service charges or disputes that might affect your ownership, or even large expenses to be incurred by the owners in the near future for items such as the refurbishment of common parts, repair of a swimming pool, or replacement of a roof.
9. Be Aware of Annual Costs
Owning a property in Spain involves ongoing costs, including property tax (IBI), non-resident income tax, utilities, and community fees. Confirm these expenses with your lawyer to avoid surprises after purchasing.
10. Stay Informed at Every Step
Throughout the process, ensure that you fully understand each step of the purchase. Your lawyer should explain the details of the current ownership of the property, the content and effect of the private purchase contract, the steps to completion of the transaction and registration of your interest in the property. Don’t hesitate to ask for clarification—it’s better to ask now than regret later.
FAQs About Spanish Property Law
Who inherits property in Spain?
Under Spanish law, your children or your parents and your spouse are the default beneficiaries if there’s no will. To ensure your wishes are followed, consider drafting a Spanish will.
Do I need a Spanish will?
Yes, if you want to simplify the administrative process upon your death. If when you die a Spanish will covers all of your Spanish assets, the inheritance process will be simplified and the complexities of the effect of a UK will can be avoided.
What hidden costs should I expect?
In addition to the purchase price, you should budget for taxes, surveys, legal fees, and ongoing costs like insurance and community charges.
Why hire a lawyer?
A Spanish property lawyer ensures compliance with Spanish law, handles the conveyancing process on your behalf and in your interest, and protects against fraud or legal complications.
Expert Help with Buying Property in Spain
E&G Solicitors in Spain specialise in all aspects of Spanish property law. Whether you’re buying, selling, or renting, our expert lawyers provide tailored advice to guide you through the process.
