Understanding Spanish Law relating to Real Estate A Complete Guide

Spain is an extremely popular destination for foreign buyers looking for a pleasant climate, a diverse culture and a high standard of living. The Spanish real estate market relies heavily on foreign buyers in many parts of the country. While renting in Spain is also a popular option for some, many foreign nationals prefer to buy a property. Home ownership is the most popular option with over 75% of people owning their homes in Spain.

British nationals often choose to relocate to Spain for retirement or to simply enjoy the culture, climate and many perks that Spain has to offer. It is also common for British nationals to own a holiday home in Spain that is rented out to tourists in the summer months.

This guide will cover a wide range of aspects surrounding the law governing in Spain, highlighting the things you should be aware of before purchasing Spanish property, and how Giambrone & Partners can help.

Click on the links below to jump to that section:

Find out more about the associated costs that come with buying a Spanish property.

Find out more about what to expect when buying a Spanish property, and the differences between Spanish law and that in England and Wales.

Find out when you should consider instructing an expert real estate lawyer, and the benefits of working with international solicitors.

Find out the benefits of working with Giambrone & Partners.

What are the costs associated with buying a property in Spain?

There are various costs associated with buying a property in Spain. These include:

  • The deposit – the typical cost of a deposit for a Spanish property is 10%.

  • Transfer Tax – this amount depends on which region the property is located.

  • Registration fees – 1.5%.

  • VAT – 10%.

  • Stamp Duty – this amount is often 1%, however can vary depending on the region the property is located.

The overall cost of buying a house is dependent on the valuation of the house itself. It is a good estimate to allow 10-15% of the purchase price to be set aside for fees.

Consider instructing an English-speaking Spanish real estate lawyer who will explain the Spanish conveyancing procedure and what to expect, as well as overseeing the documentation you require.

Contact us today and see how we can help you.

What are the main differences between buying residential property in the UK and Spain?

There are a number of different factors, compared to the UK, associated with the Spanish property market that you will need to consider before signing an agreement. Once you have found a property, Spanish real estate law requires a much larger holding deposit than is expected in the UK, typically between €3,000 and €6,000.

You will also require a Numero de Identificación de Extranjeros (NIE) to buy a Spanish property; for which you must pay a nominal fee. This can all be organised by your Spanish lawyer.

Do you need legal guidance and assistance in buying a Spanish property? Contact us today.

When should you consider instructing Spanish real estate lawyers?

It is always recommended to instruct an English-speaking Spanish real estate lawyer immediately when purchasing real estate in Spain. It is beneficial to hire a lawyer that is unassociated with your real estate agent to ensure that you will have unbiased advice.

Giambrone & Partners are experts in both England and Wales and Spanish real estate law and can help you in all situations associated with buying a property.

Can a Spanish property lawyer assist with energy efficiency certificates?

Much like in England and Wales, where an energy efficiency score of C or above is legally required for all residential properties, Spanish homes also need an Energy Performance Certificate (EPC). The Certificado de Eficiencia Energetica (CEE) ensures homes can run efficiently and have a limited amount of carbon dioxide emissions.

An EPC costs approximately €300; which can be arranged by Spanish real estate lawyer. Find out more here.

Opening a Spanish bank account

During the early stages of your purchase, it is necessary to open a Spanish bank account. This will help new homeowners pay and settle their utility bills, local taxes and any other expenses easily. Law in Spain also has measures in place to prevent money laundering.

It is therefore advisable to hire a Spanish lawyer with an understanding of the differences in each jurisdiction and can advise you on the steps during the purchase.

Spanish banks can provide mortgages on residential properties. However, if these repayments are not paid regularly the Spanish bank has the right to repossess your property and even pursue your assets in the UK.

Whenever you are looking to purchase property in Spain, it is always recommended to hire a law firm with multi-jurisdictional capacity and liaise between you and the seller. Giambrone & Partners can help you understand the terms and conditions of your mortgage on Spanish property before you sign the agreement. Find out more here.

Opening a Spanish bank account

During the early stages of your purchase, it is necessary to open a Spanish bank account. This will help new homeowners pay and settle their utility bills, local taxes and any other expenses easily. Law in Spain also has measures in place to prevent money laundering.

It is therefore advisable to hire a Spanish lawyer with an understanding of the differences in each jurisdiction and can advise you on the steps during the purchase.

Spanish banks can provide mortgages on residential properties. However, if these repayments are not paid regularly the Spanish bank has the right to repossess your property and even pursue your assets in the UK.

Whenever you are looking to purchase property in Spain, it is always recommended to hire a law firm with multi-jurisdictional capacity and liaise between you and the seller. Giambrone & Partners can help you understand the terms and conditions of your mortgage on Spanish property before you sign the agreement. Find out more here.

How Giambrone & Partners can help

Founded in 2005, Giambrone & Partners is an international law firm that operates in various jurisdictions, including Portugal, France, Spain and the UK. As we continue to expand, our services cover a wide range of international law. Our lawyers are multilingual as well as often also being qualified in more than one jurisdiction, enabling them to understand the differences between each countries’ law.

Giambrone & Partners’ Spanish real estate lawyers speak both English and Spanish, which enables clarity with communication, which helps the buying process and ensures you understand law related to Spanish real estate.

If you are interested in our services, contact us today and see how Giambrone & Partners can help you.

 

Frequently asked questions

Do you need a Spanish Will if you own property in Spain?

Although it is not a legal requirement, it is strongly recommended that both a Spanish and an English will is drafted setting out that you wish your estate to be dealt with under the law of England and Wales. If you do not do so and you reside permanently in Spain, your estate will be subject to the laws of succession in Spain which are subject to “forced heirship”. This means that your estate will be divided in designated percentages between your next of kin in a strict order. There is no provision for heritance for any other person or organisation.

Find out more information on the importance of a Spanish will here.

How long can you stay in Spain if you own property?

This depends on a number of factors, for example, whether you have adopted Spanish citizenship or have a residence visa. For those who own a holiday home, you are allowed to spend 90 days in the summer and a further 90 days in the winter. You must return to the UK in between and the two periods cannot be combined for 180 consecutive days. This includes the entire Schengen area, such as surrounding countries Portugal and France.

How do you sell a property in Spain?

If you wish to sell your property, there are important steps you need to take. You should instruct a lawyer to guide you through the process and advise you on the steps to take. As with the purchase of property, instructin a multi-jurisdictional English speaking lawyer would be the best option Contact us today for help selling your Spanish property.

Make sure you have all the required documentation, including the property’s deeds and copies of any utility bills. You will need to agree on a notary (el notario) with the buyer; ensuring the property is sold within Spanish Law.

Can you get a Spanish mortgage with bad credit?

This may be possible but will prove difficult, and more so for non-residents.

Is buying property abroad a good investment?

Buying property abroad is a good investment, as you can often let it out at a later date.

Read more about the benefits of investing in a Spanish property here.

Can you buy a Spanish property with a UK mortgage?

You cannot apply a UK mortgage for the purchase of a Spanish property.

Do you need a Spanish bank account to buy a property?

Yes, it is prudent to open a Spanish bank account to purchase property in Spain.

Buy-to-let real estate investment returns in Spain

Depending on the area in Spain investment returns are approximately 4-5%.

How much are the fees and costs related to buying a house in Spain?

The overall cost of buying a house will depend on the valuation of the house itself. It is a good estimate to allow 10-15% of the purchase price to be set aside for fees.

Related articles

Guide to buying a Residential Property in Spain- Giambrone Law