Marbella-based Larraín Nesbitt Abogados (LNA) has over 22 years of experience at your service. We offer a wide range of 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2025. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
30^th of July 2025

Summer has arrived, and with it the holiday season is at its peak.  

Scammers are also at their peak, as a new rental season is upon us to fleece unsuspecting punters.

The best way to avoid falling for a scam is to be aware of it.

I have collated below eight tips that may help you avoid being scammed on renting a holiday home in Spain.

1. Fake listings. Scammers use enticing photos from legit sites for their phoney property listings. When you arrive at the property, it's either not up for rental or it's occupied by someone else.
2. Bait and switch. The property shown in the photos is not the same one when you arrive.
3. Property is listed below the market rate As they say, if it sounds too good to be true it probably is. You know that €2,000 a month villa in Ibiza you are being offered? Yep, it’s a scam.
4. The person you are dealing with is not the owner. This is normally a telltale sign you are being scammed. Excuses given will be that they have been left in charge of the property as the owners live abroad, etc. Always ensure the person you are dealing with is the owner, realtor, or property manager.
5. You are asked to pay in cash or by other exotic means which are not traceable (i.e. Bitcoin).
6. You are asked to make overseas payments to a country other than Spain.
7. Always in a rush. Pay up or give up. They typically give you under 24 hours to pay them as they have “a long waiting list”.
8. You are asked to pay in advance the full rental price without meeting them in person or physically touring the place yourself. Virtual property tours are a huge red flag.
   

Available services from LNA:

• Holiday Rental Accounting Service (HRAS)
• Rentals (contract drafting)
• Contracts (read & review)

At Larrain Nesbitt Abogados (LNA) we have over 22 years’ experience assisting clients buying, selling, or renting properties. We can also offer you a competitively priced accounting service to file your landlord taxes every tax quarter nationwide. We are also specialized in immigration & residency visas. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218, or Spanish line  (+34) 952 19 22 88, or by completing our contact form to book an appointment.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2024 © Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Lawyers has over 22 years' taxation & conveyancing experience at your service. We offer a wide range of over 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2025. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
30th of June 2025

Unless you have been living under a rock over the last month, you likely already know that Spain declared war against holiday rentals, specifically illegal ones. The Spanish government launched an aggressive crackdown on tourist rentals (short-term lets).

Unbeknownst to most landlords, a war is being waged against them by Spain's government. The reason behind the latest witch hunt is that property and rental prices have spiralled out of control in Spain, reaching all-time highs. Most natives can no longer access housing or rentals at affordable prices (Spanish wages have barely increased over the last decade whilst inflation remains unchecked leading to a generalised loss of purchasing power). These disenfranchised voters form the core of the voters of the current government, so it has been forced to do something about the situation given the growing discontent under the sweltering heat.

The government is shifting the blame on foreigners (always useful scapegoats as they cannot vote), and tourists in particular, for the general increase in prices. The reality of course is quite different; tourist accommodations account for under 1% of properties. But hey, don't let the truth spoil a good headline! 

Today’s press reports that the government denounced over 3,500 properties in Madrid alone,. These properties were being offered as tourist accommodations. They lacked a Tourism Licence or the new rental registry code, or both.

This example is only for Madrid; in every region of Spain thousands of properties are being reported by the government for large fines as I write these lines. The government uses an army of individuals who trawl online property portals and report them to regional authorities, who then fine them (as this is a devolved competency). 

One – of many – consequences this crackdown on short-term lets will have is to dramatically increase the price of tourist lets. This is because thousands of landlords, who do not currently comply with the new tourist laws, will be forced to pull their properties off the market under threat of massive fines. We already saw this happening with Spain's Housing Act of 2023 regarding long-term lets, which led to over 250,000 properties being pulled away from the market triggering a sharp spike in rental prices. As an example of this misguided housing policy, only in Barcelona, over 55,000 properties were removed as long-term rentals since the 2023 law. Now the government is repeating the same mistake but with tourist rentals, spreading a huge increase in rental prices, from long-term rentals over to short-term rentals. Honestly, you couldn't make it up. It's as if they were doing it on purpose to drive people off the edge. Actions have (dire) consequences, and politicians are playing with people's lives.

As published in our last blog (Spain’s new short-term rental registry explained) short-term rentals (and seasonal lets) MUST register with the new government short-term registry on or before the 1^st of July 2025 to avoid huge fines.

Failure to comply leads to massive fines.

As admonished in several articles, the Spanish government's number one priority has become housing and rentals, specifically targeting unlicenced tourism accommodations.

To avoid large regional fines, we strongly advise you attain a Tourism Licence and also a rental code. Depending on each region, as they are devolved competencies, if you do not register the fines are up to €500,000.

LNA offers a hassle-free service where we get you the new rental code (NRA) in 8 working days (you must already have a Tourism Licence). We offer holiday home landlords this service:

Apply for an NRA rental code (short-term lets/holiday homes)

Who needs to register?

• Tourist rentals (holiday homes)
• Seasonal lets

If you offer a property in Spain using property platforms which enable online bookings and payments (such as AirBnb, Booking, Vrbo, etc), you must register. Idealista is not one of them.

Excluded properties

• Long-term rentals (defined as 12 months plus)
• Properties offered through Idealista or similar sites (which do not accept online bookings and payments)

By what date do I need to have this unique rental code?

By the 1^st of July 2025.

Legal consequences of not registering your property

If you publish ads offering a holiday home, or a seasonal let, without using this new rental code, you will be subject to one, or more, of the following:

• Fines and sanctions. Depending on the regulation of each autonomous community, you can be slapped with a fine of up to €500,000.
• Your listings will be removed by platforms
• Suspension of your ability to legally rent online going forward

Drop us an email, or even better, give us a call, and one of our friendly staff will get the ball rolling, ensuring you are law-compliant and avoid large fines.

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specializing in taxation, and property conveyance. We also assist clients with immigration & residency visas, and inheritance procedures (probate). You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Lawyers has over 22 years' taxation & conveyancing experience at your service. We offer a wide range of over 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2025. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
21st of June 2025

Introduction

As published in several articles, the number one problem in Spain has become housing, specifically the affordability of new housing and rentals. The ongoing supply crunch has triggered an affordability crisis, which is gravely affecting the ability of native households to access new homes or affordable rentals in large Spanish cities.

To that end, the Spanish government pursues a lofty goal of trying to bring down rental prices across the board. In line with EU Regulation 2024/1028, it has passed a new law which requires all landlords that offer property as holiday homes, or seasonal lets, to register in a new short-term rental registry system devised to keep tabs on them. In Spanish we know it as Ventanilla Única Digital de Arrendamientos.

To cut to the chase, and in plain English, as of the 1^st of July you will be slapped a fine of up to €500,000 if you do not apply for this new rental code. This new rental code, unique to each property, should not be confused with a Tourism Licence (which you should already have attained by the way).

New rental code explained

Spain approved on the 23^rd of December Royal Decree 13212/2024, which came into force on the 2^nd of January 2025. This decree rules on the procedure to register holiday home properties. This new law will be in force as of the 1^st of July 2025.

It creates a new procedure of Ventanilla Única Digital de Arrendamientos or holiday home registration.

Who needs to register?

• Tourist rentals (holiday homes)
• Seasonal lets

If you offer a property in Spain using property platforms which enable online bookings and payments (such as AirBnb, Booking, Vrbo, etc), you must register. And before you ask, no Idealista is not one of them.

It does not matter if you offer a whole property or single rooms; you need to register either way.

Notwithstanding the above, if you do not use property online platforms, we still advise landlords to register, as currently it is a bit of a grey area, and you stand to avoid large fines. It’s best to err on the safe side of caution rather than face humongous fines.

Excluded properties

• Long-term rentals (defined as 12 months plus)
• Properties offered through Idealista or similar sites (which do not accept online bookings and payments)

By what date do I need to have this unique rental code?

By the 1^st of July 2025.

Legal consequences of not registering your property

If you publish ads offering a holiday home, or a seasonal let, without using this new rental code, you will be subject to one, or more, of the following:

• Fines and sanctions. Depending on the regulation of each autonomous community, you can be slapped with a fine of up to €500,000.
• Your listings will be removed by platforms
• Suspension of your ability to legally rent online going forward

How can LNA help you?

Our law firm offers a hassle-free registration service; we can apply for this unique rental code on your behalf whilst you sit back and relax using your Spanish digital certificate, or a specific power of attorney to act before the administration for a very competitive flat fee.

Avoid the infamous Spanish red tape! Within 8 to 10 working days, you will be awarded your new code eluding pesky fines and sanctions. You must use this code in all ads.

AT LNA we also offer tax services, which bring down your landlord tax bill by 70%, or more, if you are a EU non-resident landlord.

Conclusion

We strongly advise all landlords to refrain from offering properties as holiday homes or seasonal lets, unless you have first attained this new rental code. Some of the regional fines are truly eye-watering, and the government has made it clear it has an axe to grind with any landlord who dares flaunt its new star regulation - you have been warned!

Housing and rentals have become the Spanish government’s number one priority.

Drop us an email, or even better, give us a call, and one of our friendly staff will get the ball rolling, ensuring you are law-compliant.

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specializing in taxation, and property conveyance. We also assist clients with immigration & residency visas, and inheritance procedures (probate). You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Lawyers has over 22 years' taxation & conveyancing experience at your service. We offer a wide range of over 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2025. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Friday 13th of June 2025

Introduction

I want to keep this article short and simple, leaving aside esoterics.

Last week, the Spanish government submitted to parliament a proposal for a draft bill of a 100% tax on non-EU buyers.

I will gloss over the draft bill to clarify its main points.

It should be noted that this draft bill introduces a slew of other major property-related tax changes I will not get into (such as a widespread VAT of 21% on tourist accommodations).

The main idea I want to convey today is that this is only a draft bill, subject to change. Meaning it may, or may not, be approved by Congress. And, even if approved, it could be tweaked, being significantly toned down. 

As already published in multiple articles, this draft bill has more to do with domestic politics (appeasing a disenfranchised electorate base and grabbing headlines) than providing meaningful solutions to a growing problem, which is the unbridled rise in house prices in Spain (caused by the Spanish government’s continued market intervention with its misguided housing policies).

Challenges to the new proposed law from a legal point of view

I do not fancy extending myself going down a rabbit hole on why this new law is not fit for purpose from a technical point of view. I will list in bullet points what I think are the main reasons. This draft bill faces both domestic and European challenges.

Notwithstanding the above, the law will be enacted (it would take over 6 months). Once approved, it would be challenged and likely repealed. But the damage would be done, both domestically and abroad, tarnishing Spain’s reputation.

1. National law

• Property Transfer Tax (ITPAJD) is a devolved tax competency to Spain’s autonomous regions. The government has no business in duplicating a tax which already exists and is legally earmarked for said regions.
• It is a generally accepted principle that pervades all Spanish law that taxes cannot be confiscatory (Article 31.1 of the Spanish Constitution). A tax which levies a 100% tax rate is punitive and blatantly confiscatory.

2. European law

• One of the basic principles that undergirds the Union is the free circulation of capital (Art. 63 TFEU). This must be understood in broad terms, not only between EU member countries, but also between the Union and third countries outside the Union. Imposing a 100% tax on non-EU buyers is a restriction on the free movement of capital, which undermines the Union as a whole.
• European Law sanctions fiscal discrimination. Again, this must be understood broadly, not only between EU member countries, but also between the Union and third countries outside the Union. Member countries are not at liberty to pass laws that discriminate against foreigners. As an example of this, the landmark ECJ ruling on inheritance tax, from the 3^rd of September 2014, which Spain lost on grounds of fiscal discrimination against foreigners.

Draft bills' main points

For ease of comprehension, I list in bullet points the main points:

• This is a new national tax and will apply in all of Spain (except the Basque Country and Navarre).
• It only affects resale property. New build properties (off-plan) would be exempt from this tax (as a different set of taxes applies to them).
• Taxpayers targeted are non-resident, non-EU property buyers.
• The tax levies a 100% tax rate. Meaning property prices will be DOUBLED.
• Regional transfer tax is deducted from the national tax to pay (as in effect it is the same tax the government is proposing to duplicate).

Example of the new tax for the region of Andalusia

In Andalusia, we have a flat tax rate of 7% transfer tax on resale properties.

Let's imagine Archibald, a non-resident British national, who wants to buy a €500,000 resale property to retire.

• Buyer pays €35,000 to the Junta de Andalucia (7% transfer tax).
• Under this new law, he would also need to pay the Agencia Tributaria (Spain’s Tax Office) an extra €465,000 in transfer tax.

Overall, Archibald stands to pay a total of €500,000 in transfer tax (to both Andalusia and the central government) plus the €500,000 asking price.

The proposed tax change means Archibald pays DOUBLE the asking price, that is €1,000,000!

Proposed ways to circumvent Spain’s new 100% transfer tax

• Buy new build property instead of resale.
• Attain Spanish residency before you buy resale property. Initial residency is fine, no need for permanent or long-term residency to benefit.
• Incorporate a Spanish holding company to acquire property (or buy an off-the-shelf company). As a Spanish company is resident, it allows you to override the new tax law.
• Buy resale property before the new law comes into force. It will take a minimum of 6 months before this law is approved, likely by early 2026.
• Buy resale property in the Basque Country or Navarre (the new tax law does not apply there).

In conclusion

Let’s take a deep dive into why this new smokescreen law solves nothing and adds new problems.

Non-EU buyers accounted for 3% of all property sales in Spain during 2023, following the official figures of the Notaries Association (which includes both new builds and resales). Even if this tax is passed into law, it will barely dent house prices in Spain. Moreover, as half of the properties that were bought were new builds - which are not affected by the new tax law - the impact is likely under 1.5% of all property sales. Hardly a drop in the ocean.

There is also the argument that foreigners, and in particular non-EU buyers, acquire property mainly on the Spanish coasts and islands, looking for sun-soaked beaches. Hardly any foreigners buy in Spanish major cities (such as Barcelona, Madrid, Malaga and Valencia) where the crux of the housing price problem is located. So, there is no demand overlap.

Another valid argument is that the type of properties, and especially the price range, that foreigners are interested in do not match those that natives usually go for. In other words, foreigners and Spaniards do not compete for the same type of properties, as the latter are normally priced out. Again, there is no demand overlap.

To close my line of arguments, the easiest way to circumvent this new tax law is to buy new build property, as I advise above. As explained in several other articles, there is a supply crunch with new build property in Spain, which has triggered an affordability crisis. In plain English, lots of buyers are chasing few new properties. This supply crunch translates into new build property prices soaring by two digits a year. If this new law is approved, it will make matters even worse, as in effect non-EU buyers will switch over from resale to new builds, further exacerbating and compounding the problem. Has the government thought about this? For crying out loud, it is only obvious that this new tax law will make matters worse, pushing new build prices to greater price heights.

This law, as we say in Spanish, is a “brindis al sol” or a toast to the sun. In other words, its impact on soaring house prices will be negligible, nada. Surely the government already knows this. It’s just a politically calculated headline-catching law to garner more votes on polling day, nothing more. All artifice, no substance.

However, it will adversely impact the thousands of businesses and jobs that dot the Spanish coastlines and are heavily reliant on foreigners and tourism to make a living.

Almost one-fifth of Spain’s GDP is from tourism (12% directly and a further 6% indirectly). Tourism is the goose that lays golden eggs. And guess who is the largest contingent of tourists? Yes, British. Also, guess who is the largest contingent of foreign property buyers? Yes, British again, by a long shot. Is it wise to poke the eyes of people who are actively contributing towards bringing wealth into Spain and are helping create well-paid jobs for locals? These are not property speculators, they are looking to retire and enjoy in their twilight years the life and mild weather Spain is renowned for. What’s wrong with that?

Let us not blame foreigners for this administration's own failings and shortcomings in the housing agenda. Misguided housing policies, over taxation, and unrelenting ideologically driven market interventionism are to blame for soaring house (and rental) prices in Spain, not foreigners. Get a grip.

Politicians should not play dice with a country’s best interests for the sake of a short-term political gain. This is what defines self-serving career politicians, who take decisions on the hoof based on short-term polls, as opposed to real statesmen, who are selfless and devise grand long-term strategies that benefit a country as a whole. Guess who history remembers.

Is Spain shooting itself in the foot by approving a tax law that solves nothing and makes matters worse for us all? Will this be yet another self-inflicted wound? I leave it to the reader to decide.

“Politics: the art of creating new problems where none existed.”

At LNA, our friendly team can assist you in buying (or selling) your property anywhere in Spain. We can also get you any visa in Spain. Give us a call.

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specialising in property conveyance and taxation all over Spain. We also assist clients with immigration & residency visas, and inheritance procedures (probate). You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218, or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Lawyers has over 22 years' taxation & conveyancing experience at your service. We offer a wide range of over 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2025. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
1st May 2025

The Spanish government’s misguided housing policy has created a supply crunch on new build properties. This has triggered an affordability crisis whose consequences are yet to unfold.

This has caused new builds to soar in price by two digits a year, fuelling a new property bubble. In this case, it is justified because housing demand far outstrips supply by 500%. This shortage in new housing stock has led prices on new builds to skyrocket, leading to annual appreciations of two digits!

Spain builds under 100,000 new homes a year, when the real demand is well over 500,000. This stock shortage translates into a price hike with no signs of abating in the mid-run. As land takes many years to develop in Spain, we can expect the house price boom to continue unabated over the next 3 to 5 years.

This is creating serious problems for buyers, particularly amongst native households on precarious or low incomes, who cannot afford to access new property at these prices which far exceed Spanish wages.     

The government must revise and backtrack on its housing policy immediately to reverse a situation that is now spiralling out of control. Price bubbles are not good, and an overheated real estate market leads to dire financial and social problems as witnessed in 2008.

The Spanish government must take decisive action to cool down the prices on new builds by dramatically increasing the supply of housing stock.

It could achieve this by:

• allowing developers to build more properties by reducing the ludicrous admin red tape
• foster an ambitious nationwide construction program of state-subsidised property for those on low or precarious incomes (social housing or shareholders)
• approve audacious tax breaks for taxpayers with mortgage loans over extensive periods of time i.e. 20 years
• special tax breaks for first-time buyers (i.e. youngsters) as in other countries 
• public administrations, specifically local town halls, need to release their iron grip on land and liberalise it
• the government, and all regional administrations, must reduce the taxation on housing which severely impacts on the final asking price buyers pay. Public administrations must cease viewing and treating land as their own private piggy bank to finance themselves at the expense of property buyers

The above measures would raise the stock supply to match, or close the gap, with housing demand, dramatically bringing down house prices across the board.

Although concrete solutions to address the housing shortage are open to speculation, and indeed political debate, what is clear to my mind is that banning golden visas or approving a 100% tax on property purchases by non-residents is not the way forward, as builders will build even fewer homes, further exacerbating and compounding Spain's housing problem.

You do not address a housing supply crunch by raising taxes draconianly or by eliminating blue-ribbon visas; you do so by increasing the supply of housing units in the market. In plain English, more houses need to be built to accommodate the huge demand of 500,000 units, both domestic and foreign.

This rise in new build asking prices is not sustainable long term, and is already leading to future problems. Spanish borrowers are already moving into 30-year plus mortgage loans, which spells for disaster given the overvalued valuations of collateral. These mortgages will act as financial millstones around borrowers' necks, dragging them down, and tying them to a house which is not worth what they are paying for. 

This is a very concerning and pressing matter that can only be handled by decision-makers at the highest level. Resolute action is required without further delay.

It seems the Spanish government learnt nothing from the 2008 property collapse.

Source: ABC

EDIT 28-05-2025: The Bank of Spain officially acknowledged for the first time on the 27th of May 2025 that Spain is indeed undegoing a new property bubble. Source: Newspaper Vozpopuli.

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specializing in taxation, and property conveyance. We also assist clients with immigration & residency visas and inheritance procedures (probate). You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. Voluntas omnia vincit.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Lawyers has over 22 years' taxation & conveyancing experience at your service. We offer a wide range of over 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2008 and 2025. Plagiarism will be criminally prosecuted.

21^st April 2025

Introduction

One possible way to acquire property in Spain is through a public auction. These properties that fall under a gavel are known in Spanish as ‘ejecuciones hipotecarias’, or bank repossessions in English.

Given how inflation remains unchecked post-Covid, central banks have steeply increased the price of money (interest rates) which in turn has translated into higher monthly repayments for millions of borrowers. Thousands of struggling borrowers have capitulated, and lenders have repossessed their property.

Bank repos are properties in which a borrower has fallen in arrears with his mortgage repayments and his lender (normally a bank) has taken back the property legally.

These properties are then sold on in public auctions for a fraction of their street value. For example, let’s say a reckless borrower by the name of Feliz Joseph fails to service his €500,000 mortgage loan. Once his lender repossesses his Mijas property, you can buy his home for under €200,000! Interested?

Although it may sound at first like a great option, there are in fact quite a few caveats that exceed the purpose of this blog post. The gist is that this option is better be left to professionals who know what they are doing and are prepared to accept steep financial losses. Bank repos are not everyone’s cup of tea and are not fit for laymen.

However, for those who are dauntless, the rewards far outstrip the risks. In effect, you are acquiring a property through a law court for half of its street value, or even less!

Given Spain’s ongoing property boom, which is now closing its fourth year, and how properties have appreciated by double digits in major cities and in selected coastal areas, bank repos offer a welcome respite to buyers and investors alike. Always an option to explore by savvy investors. You are strongly advised to retain legal counsel on following this option. Our law firm can assist you in these procedures if interested.

The six steps of a bank repossession

1. The borrower falls into arrears – The borrower fails to service his mortgage repayments. Delay interests (‘intereses de mora’) accrue to cover penalties. The lender contacts the borrower and first attempts an out-of-court settlement.
2. In technical default – Three months from the first arrear. After 3 months in arrears, a client’s file is passed onto the bank’s legal debt collection department which tries in a last-ditch effort to recover the debt. A lender will then initiate an Executive Procedure against the encumbered property.
3. Foreclosure and notary intervention – Depending on the chances of debt recovery, 15 to 20 days after the technical default. A letter by recorded delivery is sent by a Notary Public, with acknowledgement of receipt, informing a borrower that a repossession procedure is underway.
4. Repossession order – The court contacts the property owner to pencil a date for the trial. The judge formally notifies the borrower that his lender has instigated a repossession proceeding.
5. The court sets a date for the public auction – Normally between 6 to 12 months after initiating the Executive Procedure. The judge sets the date of the auction. The value for auction purposes cannot fall below 75% of the appraisal value. However, if no-one bids the gavel falls and a lender is legally entitled to seize the property for 60% of its appraisal value. Should there be a guarantor in the mortgage deed the bank will chase his assets first it is easier to seize them. The property will now be registered under the name of the new owner at the Land Registry (normally the lender).
6. Eviction – In the event the now ex-owner still dwells in the property, after a period that normally spans six months, police officers will arrive at his doorstep with a locksmith and a judicial bailiff to evict them by force, if necessary. The lender gains physical possession of the property, and the locks are changed.

At Larrain Nesbitt Abogados (LNA) we have over 21 years of experience specializing in immigration & residency visas. We also assist clients in buying, selling, or renting properties in Spain. You can contact us by e-mail at info@larrainnesbitt.com, by telephone at our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2008 and 2025 © Raymundo Larraín Nesbitt. All Rights Reserved.

Valencia city centre

21^st March 2025

I continue today with my running series on top places to buy and live in Spain. You can find older entries on this series scrolling down below. These impromptu light-hearted guides are not meant to be exhaustive; they are just there as a lighthouse to shed light on an area’s main highlights and landmarks.

Valencia: A fusion of tradition, innovation, and Mediterranean charm

Valencia, Spain’s third-largest city after Madrid and Barcelona, is a destination where the old meets the new, creating a captivating blend of historic charm and modern innovation. Located on the eastern coast of the Iberian Peninsula along the Mediterranean Sea, Valencia has long been a hub of culture, trade, and industry. Whether you're a history enthusiast, an art lover, or a seeker of sun-soaked beaches, Valencia offers something for everyone.

A rich historical legacy

Valencia traces back its roots two thousand years to Roman times. Romans founded a military outpost (Valentia Edetanorum, 'city of the brave') to safeguard territory against an increasingly assertive Carthage. It settled it with veteran legionaries and eventually grew into a colony. The site was carefully chosen as it had a natural bay for the safe mooring of ships and was conveniently close to the river Turia.

The city boasts a wealth of historical landmarks that reflect its complex and fascinating past. The Ciudad de las Artes y las Ciencias (City of Arts and Sciences), although modern, is built on the city's historical legacy of ingenuity and design. The La Lonja de la Seda (Silk Exchange)  stands as a testament to Valencia's medieval prosperity, when it was one of Europe's most important commercial centres. The Torres de Serranos (Serranos Towers) and La Catedral de Valencia (Valencia Cathedral), home to the famed Holy Grail, are also must-visit landmarks, offering glimpses into the city's past.

Valencia is the capital city of the autonomous region of Valencia, one of the richest and most powerful in Spain.

Valencia: Cradle of artists, intellectuals and businesspersons

During its twenty-two hundred years of history, Valencia has been the birthplace of several renowned figures, ranging from artists to writers, and everything in between. Valencia has a long-standing tradition, dating back a millennia, of being the birthplace of some of the sharpest minds in business in the country. I’ve greatly abridged the list to name the main ones. To name a few, and in no particular order:

Joanot Martorell (knight and writer), Jaime I The Conqueror (king and gifted military commander), Juan Roig Alfonso (city benefactor, generous businessman, and supermarket mogul ‘Mercadona’), Vicente Blasco Ibáñez (journalist and writer), Luis García Berlanga (lauded movie director), Joaquín Sorolla (master painter), Carlos Marzal (writer), Javier Mariscal (graphic designer), Juan José Millás (writer), Santiago Calatrava (avant-garde architect), Juan Carlos Ferrero (tennis player), Cristina Seguí García (journalist, youtuber, and political activist), Nino Bravo (singer), Ausiàs March (knight and poet), Celia Forner Venturi (model and businesswoman), Pablo Motos Burgos (comedian, tv showman, and businessman), Luis Vives (humanist), Antonio Ozores (actor and writer), Concha Piquer (née María de la Concepción Piquer López, singer), Isabel Clara Simó (writer), Camilo Sesto (né Camilo Blanes Cortés, singer), Lluís Fullana i Mira (writer, philologist, and father of the Valencian language), Nuria Roca (model and tv hostess), and Hugo Reyes Navarrete (self-made businessman, youtuber, and financial coach).  

Modernity and innovation

Valencia is known for its vibrant, forward-thinking atmosphere. The Ciudad de las Artes y las Ciencias, designed by Santiago Calatrava, is a perfect example of Valencia's cutting-edge architecture. With its futuristic structures, this iconic cultural complex includes the Oceanografic (Europe's largest aquarium), Hemisférico (an IMAX theater and planetarium), and Palacio de las Artes Reina Sofía (a stunning opera house). This area of the city represents Valencia’s ability to innovate while staying true to its cultural roots.

The rise of new technology and sustainable development is another key aspect of Valencia’s modern identity. The city is positioning itself as a leader in green technology and digital transformation, with smart city initiatives to improve quality of life for residents and visitors alike.

Malvarrosa beach, Valencia city

Mediterranean lifestyle

No trip to Valencia would be complete without experiencing the relaxed Mediterranean lifestyle. The city is home to miles of beautiful coastline, with sandy beaches such as Malvarrosa and Patacona offering the perfect escape from the bustling city centre. Here, locals and tourists alike enjoy leisurely walks along the promenade, indulge in delicious paella (the region’s signature dish), or simply relax under the Mediterranean sun.

The city's mild climate makes it an ideal year-round destination, with long, warm summers and pleasant winters. Alongside the beaches, Valencia's green spaces, like the Jardín del Turia (Turia Gardens), an expansive park that stretches across the city, offer residents a tranquil retreat amidst urban life.

City of Arts and Sciences

The Ciudad de las Artes y las Ciencias, designed by Calatrava, is a leisure and scientific complex which has become an iconic landmark in the city and is comprised of several buildings:

• Oceanogràfic: It’s Europe’s largest aquarium home to over 500 species with daily dolphin shows for the wee ones and, erm, the young-at-heart.
• Hemisfèric: is a digital 3D cinema which features several documentaries on a 360° screen.
• Science Museum: it has interactive exhibitions and displays to engage its visitors.
• Palau de les Arts: is the go-to place for music lovers. It’s home to concerts, opera ballets, zarzuelas, etc.
• Umbracle: it’s an open-access garden where you can enjoy viewing Mediterranean plants and flowers.
• Ágora: houses permanent and temporary exhibits.
• L'Assut d'Or: iconic land bridge crossing the river Turia, which unites the Science Museum and the Ágora.

Museums

Valencia city is home to 34 museums, prepare to be spoiled for choice! I only list what I reckon are the main ones:

• Ceramics Museum: the Palace of Marqués de Dos Aguas hosts the largest collection of ceramics in the country. From the 18^th century to the contemporary period.
• Museum of Fine Arts: its permanent exhibition includes the works of masters such as Sorolla, Goya, and Velázquez.
• Science Museum: already listed above in the City of Arts and Sciences.
• The Fallas Museum: each year only one falla is pardoned by the public from the bonfire and joins the ranks of this museum as a permanent exhibition.

La Lonja de la Seda – The Silk Exchange

Founded in 1492, it is an emblematic gothic building in the city. It was declared a World Heritage site by UNESCO in December 1996. The gothic building is surrounded by sweetly scented orange groves. It used to harbour the commerce of silks from the East Indies.

Jardín del Turia – Gardens of Turia

Valencia is built on a plateau which is prone to flooding every year from the adjacent hills and ridges that surround it. Every decade there is a serious flash flood, such as the one from last October 2024. This has been happening since Roman times. Due to the risk the river Turia posed to its inhabitants, and after the flash floods of October 1957, General Franco deviated the course of the riverbed in what is one of the few cases in recorded history. As a result, large swaths of land were freed up in the middle of the city which became known as the Gardens of Turia. It’s 9 km of sprawling lush green areas that traverse the city. This is one of Spain’s largest parks in an urban city. It has plenty of romantic spots; lads, if you are looking for a romantic place to declare, this is it. You can thank me later.

Festivals and celebrations: Fallas and La Tomatina

Valencia is home to one of Spain's most iconic festivals, Las Fallas. Held every March, this festival is an explosion of creativity, tradition, and fire. Large, intricate sculptures, made from wood and papier-mâché, are created to represent satirical depictions of current events and characters. At the end of the festival, these sculptures are set ablaze in a spectacular display of fire and fireworks. Las Fallas not only brings visitors from around the world but also reinforces the city's strong sense of community and pride in its cultural heritage.

The La Tomatina festival, held in the nearby town of Buñol, is another example of the region’s love for lively and energetic celebrations. Visitors from all over the world participate in the world-famous tomato fight, creating an unforgettable experience.

Mercat Central de Valencia

A bustling marketplace that showcases fresh produce, meats, and seafood along with local delicacies. You can enjoy freshly prepared food against a historic backdrop.

Valencia’s Cathedral

An eclectic blend of Gothic, Romanesque and Baroque styles. It allegedly houses Christianity’s Holy Grail. If you’re fit and willing, you can climb the Miguelete bell tower to enjoy 360° views over a magical city.

Gastronomy: A taste of Valencia

Valencia is widely known as the birthplace of paella, a dish that has become a symbol of Spanish cuisine worldwide. The traditional Valencian paella is made with a combination of rice, saffron, and locally sourced ingredients such as rabbit, chicken, and seafood. However, the city offers much more than paella. The local gastronomy is diverse and features a variety of Mediterranean-inspired dishes, including horchata (a refreshing sweet drink made from tiger nuts) and fideuà (a noodle-based dish similar to paella). Food enthusiasts will find a vibrant culinary scene, with everything from traditional tapas bars to Michelin-starred restaurants.

Sustainable urban development

Valencia is becoming increasingly known for its commitment to sustainability. The city is taking steps to reduce its carbon footprint through a series of green initiatives, including the promotion of cycling, the use of renewable energy, and a focus on urban gardens. The Jardín del Turia, a former riverbed turned into one of the largest urban parks in Spain, exemplifies Valencia’s approach to creating green spaces within an urban environment. Additionally, Valencia's growing network of bike lanes and the city's commitment to public transportation make it one of the most eco-friendly cities in Spain.

Valencia: Spain’s orchard

I think no one can argue the best oranges in the world are grown in Valencia. These are the ones I have breakfast with every day. But Valencia is also home to some of the best vegetables and fruits grown in Spain and exported to the Union and the world. Truly, Valencia is Spain’s orchard.

Conclusion

Valencia seamlessly blends sunshine, culture, and leisure making it a crown jewel amongst Spanish cities.

Valencia’s future looks bright. With continued investment in infrastructure, cultural development, and green technology, the city is shaping up to be a global leader in both innovation and sustainability. As a growing hub for digital startups and a focal point for art and culture, Valencia is attracting talent and investment from across the world, further strengthening its position as a city of opportunity.

From its captivating history to its cutting-edge innovations, Valencia offers a perfect balance of tradition and modernity. With over 300 days of sunshine, low taxes, its Mediterranean charm combined with its dynamic growth, makes it an exciting place to visit and an even more exciting place to live.

Valencia, tierra de valientes y libres.

Valencia, land of the brave and free.

                                                                                                                      Nino Bravo

“Libre
Como el sol cuando amanece
Yo soy libre como el mar
Libre
Como el ave que escapó de su prisión
Y puede, al fin, volar
Libre
Como el viento que recoge
Mi lamento y mi pesar
Camino sin cesar
Detrás de la verdad
Y sabré lo que es al fin, la libertad.”

Loosely translated:

“Free
Like the sun at dawn
I am free like the sea
Free
Like the bird that escaped from its prison
And can, at last, fly
Free
Like the wind that gathers
My lament and my sorrow
I walk without ceasing
Behind the truth
And I will know what freedom is at last.”

Nino Bravo (1944 – 1973). Né Ferri Llopis. Was born in Aielo de Malferit (Valencia). Was a gifted singer with a powerful voice. He sang classics songs such as “Un beso y una flor", “America, America”, “Libre”, “Mi Tierra”, “Noelia”, and several more. Like so many great artists, before and since, he died young aged 29 from a car crash. He is one of Spain's greatest singers of all time.   

Other entries in this running series:

• Costa del Sol: your dream home in paradise – 8^th April 2022
• Sotogrande, the pearl of Cadiz – 3^rd June 2022
• Barcelona, the beautiful – 8^th November 2022
• Madrid, capital splendour – 21^st March 2023
• Mallorca: Heaven on Earth – 8^th June 2023
• Granada, the Last Kingdom – 12^th October 2023
• Seville, a dream city – 21^st March 2024
• Malaga, passion for life – 16^th September 2024
• Valencia, land of the brave – 21^st March 2025

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. Voluntas omnia vincit.

2.025 © Raymundo Larraín Nesbitt. All Rights Reserved.

Ní neart go cur le chéile.

By Raymundo Larraín Nesbitt

3^rd March 2025

Marbella-based Larraín Nesbitt Lawyers has over 22 years' taxation & conveyancing experience at your service. We offer a wide range of over 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2025. Plagiarism will be criminally prosecuted.

Introduction

Spain’s property boom is still ongoing.

An average of 1,754 homes are sold every day, or 640,000 during a year.

Resales are experiencing an average appreciation of 7% a year, whereas new builds (off-the-plan) are appreciating by an average of 23%!

Properties are appreciating most in large Spanish cities (such as Madrid and Barcelona) and in selected coastal areas.

These strong sales figures echo the days of the 2008 property boom.

Soure: El Mundo newspaper

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specializing in taxation, and property conveyance. We also assist clients with immigration & residency visas and inheritance procedures (probate). You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. Voluntas omnia vincit.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.