Marbella-based Larraín Nesbitt Abogados (LNA) has over 23 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 © 2026. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
1^st of June 2026

Introduction

Spanish Authorities are working hard to transition the country into the digital era, which includes its administration. Traditionally, working with Spain’s Public Administration required heavy doses of patience, resilience and wasted time.

Fortunately, modern times have forced upon the Administration new ways to engage with Society, which include the Digital Certificate (certificado digital).

Basically, a digital certificate cuts neatly through all the pesky red tape, empowering you to communicate directly with Spanish Public Administrations without jumping through all the hoops and hurdles of waiting in long queues only to be greeted at the counter by a civil servant with the dreaded:  “Vuelva usted mañana.” (Come back tomorrow).

Attaining a digital certificate is embracing the digital era.  This allows you to spend more time with the people, or things, you value more.

In a way, digital certificates devolve back to Society control over their time and how they manage their own personal affairs, freeing them up from the chains of bureaucracy.

I’m certain Kafka would approve.

Benefits of a digital certificate

A digital certificate is now required when dealing with Spanish Public Administrations (at a local, regional and national level). 

If you, for example, rent your property in Spain, regional Tourism Authorities will only communicate with you through an electronic platform that requires this digital certificate. Once you attain a Tourism Licence, Tourism Authorities notify you electronically through a specific platform. A digital certificate allows you to safely communicate and receive any electronic notifications from them in a timely manner, even when you are abroad!  No longer will official letters get lost in the post or be eaten by your neighbour’s dog! This translates into avoiding steep fines, penalties, and nasty surprises.

The digital certificate can then be downloaded to your computer or any electronic device, allowing you to communicate remotely, even from abroad Spain.

This enables fast, responsive communication, dramatically cutting down pesky admin red tape, allowing you to manage your time more efficiently.

As a recap, digital certificates save time, money and aggravation. A win-win on my book.

• Saves you time. Speed and access are the keywords. It prevents long queues and unnecessary trips to government offices, acting as a "fast track" for any administrative procedure.
• Saves you money: You also no longer need to pay a middleman to do all the legwork, as you are empowered to deal directly with the Spanish Administration, on a one-to-one basis.
• Saves you aggravation: you no longer need to trawl through government websites looking for appointments or waste whole mornings at a government office only to be told by a civil servant to return another day.
• Adds layers of security: safely sign electronically contracts or other legal documents from your own home. This electronic signature is accepted nationwide.

Key administrative tasks

• Essential to deal with bureaucracy: It is the primary tool to interact and deal with Spanish Public Administrations (at a national, regional or local level), including tax agencies, social security, and local town halls (Ayuntamientos).
• Enables you to sign documents electronically: It allows you to sign contracts (buying or selling property), rental agreements, or any legal document with full legal validity without being physically present. This saves you a lot of time, money, and adds a layer of security.

Working examples

• File taxes online: It enables you to file and pay tax returns online, view tax debt, and pay fines in real time (saving you delay interests and fines).
• Immigration: Registering, or renewing, your TIE or residencia permit.
• Holiday rentals: Deal with Tourism Authorities online. Communicate with the Guardia Civil reporting your guests, and accommodations electronically, making your life easier.
• Driving: Managing and renewing your vehicle documentation with the DGT (Dirección General de Tráfico), Spain’s Driving Agency,
• Empadronamiento: Enrol, or update, in your town hall census. Register or update your home address.
• Required for self-employed or freelancers (Autónomos): It is generally needed to register and operate as a self-employed individual in Spain.
• Banks: sign financial documents from home without needing to attend your local branch.
• Other.

Attaining a digital certificate is fast and easy through us

At Larrain Nesbitt Abogados (LNA) we get you a digital certificate in under 10 days, removing all the associated pain.

We offer this service: Digital certificate

Fees vary depending on whether the digital certificate is needed for a physical person or a legal person (company).

Requirements to attain a digital certificate:

• Hire us
• Specific power of attorney
• You need a NIE number

 We offer this service: Digital certificate

At Larrain Nesbitt Abogados (LNA) we have over 23 years of experience specialising in property conveyance and taxation. We also assist clients with immigration & residency visas (digital nomad visa), 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. Plagiarising, 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.
2026© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 23 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 © 2026. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
8^th of May 2026

Introduction

Having bought and sold hundreds of properties, and with over 600 articles published over the last twenty-three years, it was long overdue Larrain Nesbitt Abogados published an in-depth guide on how to buy property in Spain. This has been a long-standing request from clients and readers that we needed to fulfil.

Our practical guide will take you step-by-step through the process of finding and buying your dream home, with particular focus on the region of Andalusia. Whilst we have strived to help you to get the best result at every stage of the buying process, please understand this guide is only an approximation to the procedure and should not be construed, or taken, as substitute for professional legal advice.

This is a comprehensive multipurpose 28-page guide that ties up all the articles we have been publishing over the last 7 years for Idealista. Just click on the link below to download, or browse, our free property guide. If you are having issues downloading it, please contact us and we will email you the guide in PDF format. Alternatively, you can also access this older version.

Guide to buy property in Spain

You can buy and live anywhere in Spain; you will be spoilt for choice: Barcelona, Costa del Sol, Granada, Ibiza, Madrid, Malaga, Mallorca, Santiago de Compostela, Seville, Sotogrande, and Valencia.

Call us and speak to one of our friendly staff free of charge!

Available services:

• Conveyancing in Spain – Buying
• Conveyancing in Spain – Selling

At Larrain Nesbitt Abogados (LNA) we have over 23 years of experience specialising in property conveyance and taxation. We also assist clients with immigration & residency visas (digital nomad visa), 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. Plagiarising, 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.
2026© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 23 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 © 2026. Plagiarism will be criminally prosecuted

Inset photo: Cala D'Hort, Ibiza

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
8^th of April 2026

Introduction

Spring is upon us and with it comes the best sales season. With this in mind, we’ve published a short article supplying a few basic pointers - by no means exhaustive - that buyers should be mindful of. Happy house-hunting!

Eight tips on buying property in Spain

1. Independent legal representation

If you are a foreigner, you are strongly advised to hire an abogado (lawyer) to represent your interests. Banks and Spanish notaries are neutral public officials who verify the legality of documents but do not perform a due diligence on your behalf. Hiring an independent Spanish lawyer (abogado) ensures your interests are exclusively represented during contract reviews and background checks. Lawyer’s fees are 100% tax-deductible. If there is one thing you should take from this article, is to be legally represented.

2. Ownership

You would be surprised to learn the number of sellers who are not the actual registered owner of a property. This happens frequently, for example, when the owner dies and one of his heirs is selling the property but still has not carried out the full title registration procedure. You should only enter into a contract with a person who appears at the land registry as the rightful title holder. In Spain, you cannot sell what you don’t own.

3. Hidden debts attached to the property

Unbeknownst to a buyer (caveat emptor), there can be multiple debts and charges against a  property that DO NOT appear on a nota simple. The golden rule in Spain is that debts always follow the property. Meaning whoever owns the property is liable for any and all hidden debts, charges, and planning issues. A few examples:

• Community of owner’s fees: owners are liable going back 4 years. In some coastal areas, in high end communities, these fees are substantial (in the dozens of thousands)
• Up to date with taxes (local, regional and national). For example, a property is liable for local taxes going back 4 years. Your lawyer will verify there are no outstanding taxes owed as part of their due diligence.
• Free of liens and charges. Particularly in rural areas, properties may have a lien, such as a right of way or a right to water supply, by a neighbour. In urban areas a right of view is very common, meaning you cannot build or obstruct the view of your neighbour. You should be aware of these limitations to avoid protracted litigation.
• Property is classified as an apartamento turistico. This has strong limitations on sales price and property use.
• Property is classified as a public subsidised dwelling (VPO). Sales price is capped and renting may be banned.
• Property is classified as leasehold, not freehold (ownership belongs to the government, local, or regional administration), very frequent in coastal areas. These type of properties have a capped period of time of usage normally spanning 30 years. After that time, the contract is renewed or not.
• Property is involved in an ongoing planning dispute (legal proceedings) that may result in a complete or partial demolition. Again, whoever owns the property may be found guilty and liable for breaching planning laws, even if they were not involved.

4. Community of owners’ byelaws. You should acquaint yourself with the rules governing them as communities are now empowered to ban holiday homes or pianists, for example.
5. Illegal property extensions. Unbeknownst to a buyer, the seller may have undertaken illegal extensions to the property (without the appropriate planning permissions from the town hall). Common examples of these are closing in open terraces. Besides being heavily fined you may be forced to pull the works down at your own cost. Additionally, they may also jeopardise a property sale. For example, if a buyer requires finance, his lender will send a property surveyor to carry out an appraisal who will quickly pick up on these extensions, and the buyer’s bank will REFUSE to finance the property purchase. 80% of property sales in Spain are financed. Until you update the property deed reflecting these changes, you limit your pool of buyers to cash-buyers only. This translates into longer waiting periods which can take several years.
6. Military-designated zones. Spain has legal limitations for all non-EU foreigners buying property, which include but are not limited to, adjacent to military bases or deemed as security sensitive or strategic areas. These lands are legally earmarked and require written permission from the competent Military Authority which takes in or around one year to attain. You will have no problem whatsoever buying the property, completing before a notary public and even paying your property transfer tax but then you will be UNABLE to register the property under your name at the land registry without said permission. Make no mistake, Spanish Military Authorities are under no obligation to grant you said permission after, or even before, you complete leaving you stuck in a legal limbo where you have lost all your money and have no title deed to show for it. Only a lawyer can assist you from making such a crass mistake.
7. Coastal laws. Beware of the standard 100-metre protection zone (this can actually be reduced to 20 m or even increased up to 200 m contingent on the area) on buying coastal properties. Planning authorities may force you to pull down the property, even if decades old, at your own cost. Again, whoever owns the property has the problem.
8. Certificate of Energy Performance. As of 2030, properties with an EPC rated ‘E’, or lower, will not be able to be sold or rented out. As of 2033, the ban will extend to properties rated as D. 80% of properties in Spain are currently classified as ‘E’ or lower. This EU regulation will force millions of owners to pay for improvement works to attain a rating above E if they intend to sell or rent as of 2030 onwards.

Why you should choose LNA law firm to represent you buying property in Spain:

• Ultra-low competitive fees
• Our fees are 100% tax-deductible
• Our lawyers speak several languages
• We are also specialised in taxation and visas
• We have 23 years of experience at your service
• We have conveyed 100s of properties all over Spain
• We have hundreds of positive client testimonials and Google reviews
• All our lawyers are regulated by Spain’s Bar Association and have Professional Indemnity Insurance of up to €1mn

You can buy and live anywhere in Spain; you will be spoilt for choice: Barcelona, Costa del Sol, Granada, Ibiza, Madrid, Malaga, Mallorca, Santiago de Compostela, Seville, Sotogrande, and Valencia.

Call us and speak to one of our friendly staff free of charge!

Available services:

• Conveyancing in Spain – Buying
• Conveyancing in Spain – Selling

At Larrain Nesbitt Abogados (LNA) we have over 23 years of experience specialising in property conveyance and taxation. We also assist clients with immigration & residency visas (digital nomad visa), 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. Plagiarising, 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.
2026© Raymundo Larraín Nesbitt. All Rights Reserved.

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
1^st of December 2025

Introduction

Spain is a young democracy located at the heart of Western Europe. As a member state of the Union, it offers a safe and stable legal and financial environment.

Forbes chose Spain, again, for another consecutive year, as the top spot to buy and live in the world! And not without good reason!

Eight reasons to buy property in Spain

1. Affordability. Compared to other European countries, the costs of buying and living in Spain are far lower, making it widely accessible.
2. A mild all-year-round climate. Spain has a national average of 320 days of sunshine a year. Light and warmth are never too far away!
3. Ultra-low taxation (only in some regions of Spain). Spain does not have homogeneous taxation. Because of devolved taxes, some regions have low taxation (Andalusia, Alava, Biscay, Madrid, and Guipuzcoa), whereas other regions have high taxation (Aragon, Asturias, Valencia and Catalonia). You are well advised to research the taxation, as it will have a significant impact on buying and on inheritance tax, for example. In addition to this, non-EUs can profit from a Digital Nomad Visa, which has associated lenient tax breaks. Low regional taxation and a DNV work in tandem to make you pay very few taxes.
4. A privileged lifestyle. Spain spoils you for choice, as it caters to all tastes: whether you enjoy stunning scenery, the buzz of large cities, a vibrant cultural life, varied cuisine and wines, or simply grabbing a great suntan to dazzle your friends back home, Spain has you covered.
5. Accessibility. A modern rail network, new highways, state-of-the-art airports, and high-speed internet ensure you are always well-connected.
6. First-class amenities. Renowned museums, lavish restaurants, luxury shops, trendy designer boutiques, refined theatres, glam discotheques, 18 and 9-hole golf courses, international private schools, and exclusive yacht-filled marinas. The problem is that you won’t have enough time to enjoy them all!
7. Quality healthcare. Spain offers several modern private hospitals that cover your every health need. Public healthcare is also available to all Spanish residents. There are also specialised beauty medical facilities that assist in enhancing your physique, because everyone deserves a little nip and tuck.
8. A vibrant cultural life. Spain’s vast cultural offering, spanning millennia, remains unmatched. Spain is the second country in the world with the most tourists (94 million), which translates into a healthy demand for housing. This creates a strong rental potential for buy-to-lets and investment opportunities (capital appreciation).

So many great places to choose from: Barcelona, Costa del Sol, Granada, Madrid, Malaga, Mallorca, Santiago de Compostela, Seville, Sotogrande, and Valencia.

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

• Conveyancing in Spain – Buying
• Conveyancing in Spain – Selling

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 email 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. Plagiarising, 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 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
1^st of September 2025

Last 3rd of April 2025, Spain’s Horizontal Property Act was amended. This is the law that rules on community of owners in Spain. 

In a nutshell, the amendment is that community of owners may now vote to authorise the ban of new tourist licences granted on or after the 3rd of April 2025. This was prompted because before this change, a unanimity vote was required which of course never happened because owners (landlords) who rented out would oppose a ban, leading to a stalemate. This change in law breaks the gridlock and now allows rental blanket bans in community of owners all over Spain.

In effect, this law empowers community of owners to decide on whether they allow, or not, tourism licences. This changes the rules of engagement.

This change in law has far-reaching implications, even financial ones, that significantly affect property prices and sale prospects. In plain English, it marks a new milestone in buying and selling properties in Spain for all the reasons I collate below.

Community vote

It requires a vote of 60% of the owners, who in turn represent 60% of the community. 

• Ban: if owners decide to ban all tourist licences going forward in a community, this means that even if a property owner attains a valid Tourism Licence from Regional Tourism Authorities after the ban, he is banned from offering his property as a holiday accommodation (short-term let).
• Approve: If owners allow new tourism licences, landlords will be free to offer their property as holiday lets just like before.

Principle of no retroactivity

The above begs the question of what happens to landlords who offer holiday accommodations and have already attained a tourism licence before the new law came into effect?

The short answer is nothing. 

They had already acquired a legal right to rent out their properties as tourist lets, and any community ban that is approved on holiday accommodations does not affect them as they are expressly excluded from its effects. In short, they walk away scott free.

Financial implications of this change in law: short-term rental monopolies

As stated in the article’s introduction, this change will have a huge financial impact on a property’s asking price going forward. 

This is because a unit offered as a holiday accommodation on online platforms can easily make a net 7 to 10% yield a year, depending on location. This is in sharp contrast with long-term lets, which barely offer a 4% net yield, and, to top it off, you have a very serious risk of ending up with squatters under new pro-tenant laws. As a result, landlords have swapped en masse their properties from long-term to short-term, which are far more profitable and secure from a legal standpoint (fast evictions on non-payment as not the main place of abode).

Now, with this change in law from the 3rd of April, this means that some properties are outright banned from being rented out as short-term lets in community of owners. This change impacts on the sales price. This is better understood with an example.

Take two luxury penthouses in a community of owners in Marbella. They both have the same size, orientation, and finishings. Both properties are valued at the same price, €1,000,000, as in effect they are identical, both legally and physically.

However, one owner diligently procured a Tourism Licence, and the other did not before the 3rd of April 2025.

Following the 3rd of April change, the community of owners voted a blanket ban on tourist rentals. The first owner now has a property which he can still offer as a holiday accommodation because the ban does not affect him (the principle of no retroactivity on acquired rights), whereas the second penthouse owner is banned from doing so. 

Consequently, the first owner can easily achieve a 10% yield a year on his property, whilst the second one cannot. In plain English, the properties are now legally different.

The effect this ban has is that now the first property has a revised valuation of €1,100,000, or more, to reflect the potential rental yield. Whereas the second property’s price has dropped to €900,000, or under, because he is now banned from renting out short-term (he may still rent out long-term if he wishes, but the yield as explained above is significantly lower and far riskier).

In effect, this change in law has allowed the first property owner to hold a legal ‘monopoly’ on short-term rentals within a community of owners (as no new tourist lets are allowed), which greatly appreciates his property’s value. Whereas the second property owner, out of no fault of his own, has seen his property’s value take a brutal dip, which translates into a steep price drop.

Property-hunting

Following this law, on being instructed by conveyance clients to buy property in Spain, we are now tasked by them to ensure no rental bans are in place. Which means our law firm is systematically discarding properties – which are perfectly good from a legal point of view – only because they now have a rental ban in place affecting them.

The immediate effect is that properties affected by rental bans are now harder to sell. So, besides experiencing a sharp price drop, they will also take longer to sell. Properties affected by rental bans will be the last ones to be picked by savvy investors, the bottom of the litter, pushing back sales dates by months or years.

In conclusion

The change in law of the 3rd of April 2025 is yet another example of the government’s war against tourist rentals.

As a recap, it has the following consequences:

• Prohibition to offer properties as holiday homes in communities of owners that vote to ban them
• Asking property prices affected by rental bans will drop sharply, by 10 to 20%
• Asking property prices not affected by bans will appreciate sharply, by 10 to 20%
• This law creates legal rental ‘monopolies’ in some communities of owners
• The law changes the legal status of properties (which impacts their asking price and sale prospects)
• Properties affected by rental bans will be shunned by buyers, taking much longer to sell
• Properties allowed to be offered as tourist rentals will sell much faster and at a higher price
• A two-tier approval system on tourism licences is now working. Even if you are granted a Tourism Licence, your community of owners can shut it down unless you got it before the 03-04-2025 (which is a double control). Conversely, if your community bans them outright, you cannot get a Tourism Licence, even if you meet all the legal requirements

This law is the latest, but not the last, chapter in the Spanish government’s ongoing war against tourist rentals. Only time will tell if these well-meaning changes prove positive or detrimental.

What is clear to me is that the immediate aftermath we are witnessing, brought about by this change in law, are that few property owners are winners and most are losers. They are collateral casualties in the war being waged against tourist rentals throughout Spain.

At LNA, our friendly team can assist you in buying (or selling) your property anywhere in Spain. We can also get you any residence 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 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
28^th of July 2025

Introduction

In short, yes.

Property prices will continue to soar over the next years.

Not only can, but it is my view they will climb to new heights.

Sounds unreasonable?

At first glance, it would appear so, yes. But if we dig deeper, it becomes apparent that we are not in 2008, and there are strong fundamentals on why property prices will continue to increase over the next years.

It is no secret that property and rental prices have ballooned out of control in Spain, particularly off-plan properties (new construction). Especially in large Spanish cities (such as Barcelona, Madrid, Malaga and Valencia) and sought-after coastal areas. Property prices have soared by two digits year-on-year in these areas, and by 8% in the remainder of the country.

Whilst Spanish wages barely increased 2.76% over the last THREE decades (in real terms, adjusted for inflation), property prices increased THREEFOLD (from 1995 to 2025)!

The exception is the Spanish minimum wage, which the government keeps raising every year, exacerbating Spain’s record youth unemployment, the highest in all of Europe and out of any OECD country (38 countries), which groups the most developed economies in the world.

So, given how Spanish wages remain practically the same over the last three decades and property prices have tripled, is the rise in property and rental prices sustainable long-term?

In this short article, I’ll strive to take a shot at this question and reach some conclusions.

Differences with the 2008 property boom

The fundamental difference is that while in 2008 greed was the main driving force behind the overpriced real estate market, now in 2025 the reason is a supply crunch. There are far too many buyers chasing few units, which makes property prices appreciate considerably.

In plain English, in this property boom high prices are justified because there is a severe stock shortage of new build property. Further below, I explain the underlying reasons in detail and why I think property prices will continue to rise over the next years.

Underlying reasons for Spain’s new property boom and increased property rental prices

Whilst Spanish Authorities are more tactful in speaking of a new property bubble than the US Department of State is of Taiwan’s independence, the fact is that if it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck.

Call it what you want (semantics), to my eyes, it is a new property bubble.

Property prices are in fact 10% higher than what they were at the height of the 2008 property bubble. Every day we witness mass protests in large Spanish cities by struggling natives who call for housing and rentals at affordable prices.

I collate below the main reasons, both domestic and foreign, which help to explain the unabated rise in property and rental prices in Spain:

Global reasons:

• Pent-up demand. Post-Covid 19 there was a pent-up demand for property (not only by natives but also by foreigners). People, after being forcefully locked up for years in their homes, found a new lease on life and a renewed sense of freedom post-Covid by spending like there is no tomorrow. Roaring twenties déjà vu?
• Huge savings. Covid-19 outbreak forced people to stay at home and not spend any money. There was huge amount of savings built over a 2 or 3-year period.
• Quantitative Easing (QE). All central banks, to kickstart the economy after the global pandemic, indulged in Quantitative Easing which led to a massive spike of inflation across the global markets, specifically caused by the US Dollar. As a result of the unbridled inflation caused by QE, people could buy less things with the same amount of money (loss of purchasing power), which led investors to pile capital into real estate like there was no tomorrow to hedge against rising inflation.
• Global supply chain disruption. The Covid-19 virus severely disrupted the global supply chain, which impacted construction materials employed by Spanish builders on new builds. This shortage of materials translated into a massive price spike which was passed on to the final consumer (property buyer) by increasing property prices.
• Drop in interest rates. This incentivises borrowers to take on loans and buy property, as it becomes easier and more affordable to secure finance.

Spanish-specific reasons:

• Supply crunch. This is hands down the most important reason. You do not need to be an MIT graduate to realise that if there is a large number of buyers chasing a limited supply stock of new construction, prices are bound to leap. It is only basic economics. This issue has been caused by the government actively intervening in the market through excessive regulation. Spain builds approximately under 90,000 new homes every year (it is the second country in the Union that builds fewer homes after Portugal), when the Bank of Spain estimates the demand is well over 500,000 units a year. In other words, there is a shortfall of over 400,000 homes a year, given Spain’s strong housing demand. This huge stock gap translates into an affordability crisis of gargantuan proportions as property prices skyrocket because of a low supply. In other words, the government, through its policies and interventionism, has triggered an affordability crisis, the extent of which remains to be seen.
• Increased development red tape. In the wake of Spain’s disastrous 2008 property bubble, Spain teetered on the brink of default in 2013, prompting successive Spanish governments to take it upon themselves to regulate harshly on new build property. As a result, a mountain of red tape and admin challenges was added. This not only restricted the supply of new property (builders simply did not want to build new properties) but also added to the final price tag, as ultimately the end consumer (property buyer) was made to pay for all these additional “security measures”.
• Misguided housing policies. Whilst the progressive Spanish government has worked tirelessly in pursuit of lofty goals (like making housing and rentals more accessible to people, especially to vulnerable and younger collectives) it has done so by following misguided housing policies. In a nutshell, they have steamrolled the rights of landlords through new laws (like Spain’s new Housing Act from 2023) which translated into landlords pulling their properties away from the market (estimated at over 250,000 properties removed nationwide from the rental market) which - following the laws of demand and supply - translated into higher rental prices across the board. For example, in the city of Barcelona landlords have pulled out of the market 55,000 rental properties since 2023 because of the draconian laws approved by regional authorities who overzealously apply the government’s new biased Housing Act from 2023, which bashes landlords’ rights and overprotects tenants. As there are fewer rental properties available, rental prices go up. Moreover, the very vulnerable collectives the government commendably sought to protect with its 2023 new law are being shunned by landlords as it is almost impossible to legally remove them from the property in the event they fall in arrears or of non-payment. In plain English, Spain’s Housing Act from 2023 backfired spectacularly, making the rental situation much worse for tenants, particularly for vulnerable collectives, as rental prices have skyrocketed all over Spain. In view of the blatant failure of its misguided housing policies, the government, instead of conceding defeat and backing down on them, as would be the sensible thing to do, are actually doubling down on them by enacting even more laws that further aggravate the rental problem.
• Chronic shortage of construction workers. Unlike in 2008, Spanish nationals do not fancy being bricklayers, and developers are really struggling to find and hire fit workers. It also does not help that 55% of Spain’s bricklayers are over the age of 45 years old. So, besides being undermanned and overworked, they are also overaged, which limits the number of available new developments.
• Zero public housing. The current progressive administration has built almost zero social housing over the last 7 years. Yes, Spain’s Socialist-Communist government has made several grandiose proclamations over the years (frankly, I’ve lost count on how many) announcing ambitious government plans to spend X billions of euros in new social housing – but it never gets done. Meanwhile, silently but decidedly, some regional governments, like Madrid’s, have built thousands of social housing. It beggars’ belief that those who preach and uphold themselves to higher moral and social standards do nothing about it – nada – whilst conservative regional governments, which are ideologically opposed, are quietly building social housing in the thousands like it were nobody’s business. The world upside down. That’s 101 politics for you. In Spanish we have a great saying: “unos se llevan la fama y otros cardan la lana.” Translated, some take credit for what others do.
• The glut of 2008 property is unsuitable for dwelling. Although Spain indeed built a large glut of housing in the last property boom from 2008, most of these units are poorly located, far from city centres, and with poor infrastructure, making them unfit and far less attractive compared to sought-after newer developments. These were properties that were bum-rushed and ill-conceived at the time for a quick buck – no one wants to live in them as they are far too isolated.
• Constantly undermining property rights. By now it is no secret the government has gone out of its way, and then some more, to undermine property rights in Spain by allowing squatters (okupas) to take over the country. It has openly done so to implement social housing policies at the expense of other people’s private property. Landlords do not want to risk renting out their properties if they can end up being occupied by squatters who have more rights than landlords under this administration.  

The government’s stance on rising property and rental prices

Surprisingly, it can be summed up as increased taxation, or even creating new taxes, across the board to stave off housing demand.

To top it off, the Spanish government is ludicrously, and irresponsibly, shifting the blame on foreigners to deflect responsibility on its own administration's housing policy failings. The government argues that foreigners – particularly tourists – are driving house and rental prices through the roof in Spain. Whilst this may be true in some selected coastal areas, it does not apply to large Spanish cities (foreigners don’t buy there) where the crux of the housing problem is located. Foreigners are always suitable scapegoats for Spanish politicians as they cannot vote in national elections, win-win.

The truth of course is quite different. Tourist accommodations account for under 1% of all properties. But hey, never let the truth get in the way of a good story. Never mind the fact that Tourism is the Golden goose that accounts for over 18% of Spain’s GDP (12% directly and a further 6% indirectly). In plain English, one-fifth of Spain’s economy is overreliant on Tourism, which by the way should be addressed to reduce its overdependency, as it is a weakness that can be exploited. People living in glass houses should not throw stones.

Call me simple-minded, but if the crux of the housing problem is a supply crunch, maybe, just maybe, one would think the government should focus on actually increasing the supply stock, so prices drop. In other words, build more houses. I know, wild thoughts.

In lieu of increasing the new construction stock, either by facilitating or incentivising developers to do their job or fostering a nationwide public housing program, the government has been relentlessly increasing taxation as a deterrent.

For example, it will shortly apply a 21% VAT on all tourist rentals equating them to hotel accommodations, which is bonkers given how you cannot compare a pensioner living on passive income (renting one or more properties to make ends meet) to the clout of the hotel industry that moves billions. They are also creating a new 100% tax on non-EU property buyers, which is also crazy as it will create new problems without fixing existing ones.

What’s clear to my mind is that increasing taxation, or creating new taxes, or even eliminating blue-ribbon golden visas, is not the way forward to solve Spain’s housing situation, which is indeed a growing concern.

At best, these measures will act as a temporary band-aid scaring away a few buyers, albeit the root of the problem, which again I stress is the lack of housing supply, will not be addressed. Because demand for housing remains strong.

At worst, such measures will scare developers who will build fewer new properties, afraid of being unable to sell them with such high taxes, further compounding and exacerbating the new build supply crunch.

Proposed solutions to address Spain’s high property prices induced by a supply crunch

In view of the crazy new proposals I’m reading in the press to solve Spain’s housing situation, such as the proposal for 70-year mortgages which will be hereditary from parents to children over multiple family generations (Enslavement 2.0), I have humbly collated below some basic pointers:

• By allowing developers to build more properties on 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). The government could kickstart a public program to co-own property. For example, the government would own 80% and the property buyer the 20% balance. Over time, this percentage would gradually shift as the buyer repays the government, until he finally owns the property outright after two, or more, decades of repayments under special subsidised terms. It would not be a handout, but a means to facilitate access to housing for those who struggle with conventional mortgage loans.
• Approve audacious tax breaks for taxpayers with mortgage loans over extended periods of time i.e. 20 years plus. Tax breaks for 2 or 3 years are useless, as one cannot plan ahead with such short tax benefits. In order for people to commit financially over extended periods of time (decades) you need tax breaks that match such time periods.
• Special tax breaks for first-time buyers (i.e. youngsters) as in other countries.
• Special tax breaks for single-parent families (i.e. single or divorced mother raising two kids).
• Spanish regional and local administrations, specifically town halls, need to release their iron grip on land and liberalise it instead of hoarding it like dragons of old.
• The central government, and all regional administrations, must reduce their strong dependency on housing to raise taxes. This severely impacts on the final asking price buyers pay for homes (approximately by 30%). Public administrations must cease viewing and treating land as their own private piggy bank to finance themselves at the expense of struggling property buyers. There are smarter ways to raise taxes without having to resort to sharply increasing the price of a first necessity good (housing).

In conclusion: Property prices will continue to rise over the next years

Property prices in Spain will continue to rise over the next years no matter what. Specifically new build property, there is no question about it.

Even if the government were to decisively take head-on the problem, and fast-track an ambitious housing program nationwide tomorrow, it would still take several years to implement. Developing land and building houses takes years, it’s no walk in the park. It requires careful planning ahead and immense financial resources.

Even the points I raise above as suggestions would realistically take years to implement and would require resolute bipartisan approval by both leading political parties, which seems unlikely, given the country's broken political unity, marred by ongoing petty squabbles and feuds.

And because none of the above will foreseeably take place on time, certainly not within the next 2 or 3 years, and with the required political decisiveness, is why I believe property prices will continue to soar in Spain in the short and mid-term. Maybe not as sharply as until now, but an upward trend nonetheless.

Unless the government sets sales and rental prices by decree (central planned economy), or a major geopolitical event derails the current situation (global war, new pandemic, fall of the US Dollar as the world’s reserve currency, rise of the AI, etc) the only way for Spanish property prices is up because of the supply crunch.

It simply cannot be fixed short term unless the government expropriates properties from private individuals and companies to bridge the huge property demand gap of 400,000 units a year.

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

Inset photo credit: Development Emare, by ERASUR

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
1^st of June 2025

Introduction

Continuing with last month’s topic (How to buy resale property in Spain), this month we publish an article on how to buy new construction homes from a developer. I leave for next month, how to buy commercial property in Spain.

The following article provides a sweeping outline of the procedure. If you are looking for concrete advice on a given matter, I suggest you follow the supplied links below for more details.

I have greatly abridged the procedure for ease of comprehension. However, if you fancy delving into greater detail, I advise you to read (or download) our free Guide to Buy Property in Spain.

Buying off-the-plan property normally means paying for a property that is under construction and only exists on paper. New builds take 2 to 3 years to build in Spain. During all that time, you will have to make interim payments to the developer and pay the balance of the asking price upon completion.

First stage: The Reservation Contract

New builds, for the most part, are built catering to the highest quality standards, employing only the most modern materials and technical know-how. This has a significant impact on insulation and noise reduction, which in turn impacts on your town hall bills by greatly reducing them. New properties have a smaller carbon footprint, which translates into town halls slashing local taxes to incentivise their construction. In plain English, fortunate off-plan owners can expect to pay significantly lower local taxes, in some cases 50% less, as opposed to older resale properties. On high-end properties, this translates into massive savings of thousands of euros a year! Not to mention you are actively contributing to saving the planet.

After making enquiries and looking around for a property you may have taken a liking to one. Off-plan properties are normally listed by developers, real estate agencies or property portals such as IDEALISTA. They will nudge you to sign what is known as a reservation contract (or holding deposit) which strikes the new-build property off the market for a pre-agreed period of time, normally spanning 30 days. During this time, the property is tied and cannot be viewed by third parties, nor can any further contracts be signed over it.

The security deposit normally ranges from €3,000 to €6,000, depending on the asking price. High-end properties command larger deposits. The deposit contract is a succinct document that is normally only one page long. It has very few details, amongst them the developer´s name and company details, the development’s facilities, a general property description and the asking price.

The reservation deposit is deducted from the final asking price at completion (third stage, see below).

Pro-tips:

• The first thing a buyer needs to do is open a non-resident bank account. This is required to transfer the amounts for stages two and three below, and also to arrange direct debits on the property and pay local taxes.

• It is strongly recommended you hire an independent conveyance lawyer from the outset (prior to signing a deposit contract). On following this simple, yet essential, advice buyers stand to sidestep most blunders on buying off-plan property in Spain.
• You should not pay any deposit unless the developer has supplied you with a copy of a Building Licence (BL). The reason is because bank guarantees, which secure all your stage payments, require a BL to be valid. In plain English, if there is no granted BL, your bank guarantee is worthless. You would lose all your money without any legal recourse. More details in our article Law 20/2015: Important new bank-guarantee legislation explained for offplan buyers.
• Reservation deposits are non-refundable unless expressly worded otherwise.
• You need to apply for a NIE number (Tax Identification Number for Foreigners). This is an important document that is required by all administrations, including banks. We can get you a NIE in under 2 weeks. More details in our article: NIE Number Explained.

Second stage: Signing a Private Purchase Contract

Before 30 days are up, you will be expected to sign what is known as a private purchase contract (or PPC for short). In Spanish, this is known as Contrato Privado de Compraventa. In English law, we know it as Exchange of Contracts (or Exchanges for short). The PPC will be a long legal contract that lists the buyer and seller´s personal details, a full property description, the agreed sales price, the schedule of stage payments, the buying terms and the time frame to complete before a Spanish Notary Public.

Your lawyer will supply you with a report on title, so you are perfectly aware of the legal situation of the property you want to buy before committing to sign a private agreement. This report on title should cover the following buyer’s checklist:

• Is the developer creditworthy?
• Construction track record?
• Has the developer filed for creditor receivership?
• Does the developer own the land?
• Is there a Building Licence?
• Are there any planning issues overshadowing the development?
• Is the construction site compliant with Spain’s Coastal Law?

Normally, on signing a PPC, you are expected to make a down payment equivalent to 10% of the purchase price, which is deducted upon completion from the asking price (stage three). This amount of money is non-refundable.

Besides this down payment, you will be expected to pay approximately 35% of the final sales price in stage payments over the next two years. These are deducted at completion (stage three) from the balance owed.

Pro-tips:

• All stage payments (including the initial reservation deposit mentioned in stage one) are secured by what are known as bank guarantees. I simply cannot stress enough its importance. This document will be handed to you each time you make a stage payment and acts as a safety net on all the interim payments you make until the property is built. This safeguards your money in the event the development is not finished or if the developer files for bankruptcy proceedings. Attaining copies of a bank guarantee is the top priority for your appointed conveyance lawyer. If your stage payments are not covered by a bank guarantee, you run the risk of losing all your money.
• Remember to store safely a copy of all the stage payments you make to the developer, as they will be required upon completion by the notary in compliance with Anti-Money Laundering Regulations. You may also need them further on should you instigate legal proceedings against a developer.
• A developer cannot amend the agreed delivery date of a property worded in the PPC without your prior written authorisation. A change of a few months on the agreed delivery date is generally acceptable, but more extended periods of time require the buyer’s written authorisation as it is a contractual change. And, should they do so, they need to serve you formal legal notice and even compensate you for serious delays (six months plus). A serious delay is a contractual breach of agreement that allows you to cancel the contract and opt for a full refund.

Third stage: Completion

One of the particularities of buying off-plan property, is that completion normally takes place two years after signing the PPC (stage two). The reason being is that the property is under construction and you only complete when it is delivered legally.

Once a developer has attained a Licence of First Occupation, or legal equivalent , he will serve a two-week legal notice to the buyer (or his lawyer) to complete on the property. 

Completion is the term used to sign the title deed which is witnessed by a Spanish Notary Public. Additionally, if mortgage finance is required, a second deed is signed called a mortgage deed. Completion is the time when you pay the balance owed, normally 65% of the sales price.

You should read carefully through the deed before you sign anything. This is particularly true of a mortgage deed. Your lawyer should ensure you do not sign abusive mortgage clauses.

If you need a mortgage loan to complete on the property, it is highly advisable you negotiate a reasonable time frame to secure it i.e. 45 to 60 days. This is particularly true if a borrower is non-resident. A borrower requires an Offer in Principle (or Agreement in Principle) from his lender known as Oferta Vinculante in Spanish. By law, borrowers must pass a short exam in Spanish on their mortgage terms and conditions in line with Consumer Law protection (your lawyer can take the test for you).

At completion, you take legal possession of the property which is symbolized by being handed over the house keys.

At completion, you may be surprised to find a great number of people:

1. The developer’s legal representative and his lawyer.
2. The bank´s representatives (if a mortgage loan is required).
3. The estate agent
4. A translator.
5. And finally, the notary himself.

Pro-tips:

• I strongly advise NOT to complete before you are handed a copy of a Licence of First Occupation (LFO, for short). This key document ensures the property is above board (at least in most cases). Completing without a LFO has associated a large number of problems:

1. It provides a check on the planning legality. A LFO means the developer has built the dwelling in accordance with the original town hall’s Building Licence as well as with all Planning laws. The inspection to grant this licence is carried out by town hall’s technicians who certify a dwelling is deemed apt for human habitation. If there is no LFO granted, it may mean the property has fallen foul of planning regulations.
2. It is required by utility companies to have access to official supplies: water, electricity and gas. Spanish law requires the granting of a LFO to hook up the dwelling to the supply grid. Otherwise, you will be on the builder's supply, which is precarious at best.
3. Lenders will ask for it if you require finance. Banks will also be asking you for a LFO. Even on reselling the property, buyers will demand a copy of a LFO. If there is no LFO, banks will refuse to finance the purchase, in which case you vastly reduce the pool of prospective buyers, as 80% of buyers need a mortgage loan to complete in Spain. You could be waiting many years to sell the property.
4. Holiday lettings. If you are looking to buy as an investment (buy-to-let), a LFO is required by Regional Tourist Authorities to attain a Tourism Licence. If your property hasn’t attained a first occupancy licence, you will not be able to rent out your house in the short term and may be landed with humongous fines if caught red-handed. The fines for non-compliance are eye-watering in some regions of Spain e,g, Catalonia.

• Unlike in other countries, such as the United Kingdom, where chartered surveyors are normally hired only on buying resale property, I strongly recommend you hire one to carry out a snagging list of your Spanish new-build. The time to detect and mend all outstanding construction flaws is before completion. Once you complete, you lose your leverage unless your lawyer has practised a retention, which in practice is fairly challenging and should not be relied upon. Commissioning a comprehensive snagging report avoids countless problems and is worth every eurocent in my experience. Once all the construction flaws are fixed by the developer, you can complete at the notary. More details in our article Off-plan construction guarantees in Spain.
• Failure to secure a mortgage loan in time may result in the loss of the 10% deposit. The developer will always offer a buyer to subrogate himself in his legal position, taking on the developer´s mortgage loan. However, the pre-agreed terms and conditions with a developer are not always suitable for an individual borrower, which is why you should shop around and compare with other mortgage offers.
• It goes against a buyer´s best interests to under-declare part of the sales price at completion (besides being illegal). More on why in my article Taxes on selling Spanish property.
• You should immediately replace all the locks of your new property (including storage rooms) as countless people have had access to copies of your home keys during the construction phase. This avoids thefts and break-ins during the first months.
• Request an Energy Performance Certificate from the developer prior to completion. Properties with high energy efficiency ratings qualify for tax rebates of up to 20% on their local town hall tax (i.e. IBI tax).
• Request a 10-year building warranty from your developer.

 Fourth stage: Post-Completion

Post-completion at the notary office, your lawyer will file and pay the buyer´s taxes and then lodge the title under your name at the land registry. Title registration normally takes several weeks.

Congratulations, you are now the official owner of a Spanish property. Enjoy!

You should open a Spanish bank account if you haven’t done so already. Utility companies do not accept overseas payments. You should set all the below as direct debits against your Spanish account:

• Utility bills (water, electricity, landline, gas, internet, security, etc).
• Rubbish collection tax. Refuse charge is paid one or more times a year, depending on your town hall.
• IBI tax. Normally paid annually (akin to the UK’s Council tax).

Pro-tips:

• On owning property in Spain, it is strongly recommended you make a Spanish will. This avoids your heirs a great deal of problems, saving them time, money and aggravation at a time of bereavement. Spanish wills are exclusive only to your Spanish estate. Ideally, I advise you to make two wills; one in your home country and one in Spain dealing exclusively with your Spanish estate.
• You should set as a direct debit all utilities.
• You should set as a direct debit all local taxes on your property (such as IBI and garbage collection tax). On new build properties, IBI bills are normally received two years after completion.
• On owning property as a non-resident, you must appoint fiscal representation to comply with your annual Non-Resident tax filing. You start paying this tax on the following year of the property purchase.
• If you plan to rent out your property as a holiday home accommodation, some regions in Spain have stringent laws on the matter – seek legal advice. You may need to apply for a Tourism licence, or you register your holiday rental home. Non-compliance attracts humongous fines.
• Buyers should be mindful of La Complementaria or Bargain-Hunter tax.

Associated taxes and fees

As a rule of thumb, purchase costs add 10 – 13% over and above the asking price.

Please take thorough legal advice to budget your purchase before you commit. You can read our article Taxes on buying property in Spain.

On buying new property in Spain, buyers face the following taxes and associated fees:

1. Taxes

• Value Added Tax (IVA, in Spanish): 10%.
• Stamp Duty (AJD, in Spanish): 0.5% – 1.5%

2. Fees

• Notary fees (to witness the sales and mortgage deed): approx. 0.1 – 2 %
• Land Registry fees (for the inscription of the deeds): approx. 0.1 – 2 %
• Mortgage & gestoría fees (if finance is required): 1 – 2 %
• Lawyer’s fees: 1 – 2 %

Pro-tips:

• On selling property, almost all the above-listed items are tax-deductible. It is strongly advised that you keep hard copies of all the invoices above. This will greatly mitigate a seller’s Capital Gains Tax (19% tax rate for non-residents). More details in our taxation article: How to avoid capital gains tax when selling property in Spain.
• Storage rooms (trastero) and car parks (plaza de garaje) sold as separate legal units from the main dwelling, attract a VAT of 21%.

Where to buy property in Spain?

Spain is a wonderful country that offers multiple enticing options catering to all tastes. It is not without good reason that Spain is the second most visited tourist destination in the world!

You will be spoilt for choice: Barcelona, Costa del Sol, Granada, Madrid, Malaga, Mallorca, Seville, Sotogrande, or Valencia.

If you need a visa to stay in Spain, I advise you to read our article on the matter: Moving to Spain in 2025? Spanish visa overview.

Conclusion

The Spanish government pursues a lofty goal of facilitating access to the property ladder for its struggling nationals who, in most cases, are priced out of the market. However, these well-meaning laws have backfired as the government’s misguided housing policies have greatly increased the red tape, leading developers to build fewer new homes compared to previous decades. This has triggered an affordability crisis in Spain.

Under 100,000 new homes are built a year (Spain ranks as the second country in the EU that builds fewer homes), while Spain’s annual housing demand is well over 500,000 and growing steadily due to unbridled immigration. This housing stock shortage translates into a supply crunch, which has led new builds to appreciate by two digits a year, especially in large Spanish cities (such as Barcelona, Madrid, Malaga and Valencia). Indirectly, these housing policies have also caused rental prices to soar i.e. by 20% in Madrid in 2024. 

Although other underlying reasons have also contributed towards the house price hike (such as the disruption in the global supply chain of construction materials caused by the Covid-19 pandemic or the unbridled rise of inflation caused by QE which incentivises savers to pile their savings into real estate to hedge against inflation), Spain’s housing shortage is the main factor by a long shot. Although Spain indeed built a large glut of housing in the last property boom, most of these units are poorly located, far from city centres, and with poor infrastructure, making them unfit and far less attractive compared to sought-after newer developments. 

Unfortunately, following years of the government’s inaction and oversight, there is no quick solution in the short or mid-term, as land takes several years to be developed. We can expect new build prices in Spain to continue to increase without reprieve over the next 3 to 5 years, given the strong fundamentals for housing demand, both domestic and foreign.

Ironically, the government’s housing policy, which aimed to treat housing as a basic necessity and not as a speculative asset, has had the opposite effect. New builds, because of the government’s induced supply crunch, have become the hottest asset, greatly appreciating year-on-year. If you also factor in huge rental yields growing by two digits a year, also caused by the government's intervention in the rental market with its new Housing law from 2023, you have the perfect recipe for investors to pile in and buy property in Spain as buy-to-lets fuelling a new property speculative bubble. The road to hell is paved with good intentions.

In my humble opinion, Spain’s government should step in decisively and defuse the housing situation they have created by cooling down housing prices on allowing developers to build more units and also by proactively fostering state-subsidised property nationwide on a large scale. Banning golden visas or approving a 100% tax on property purchases by non-residents is not the way, as builders will build even fewer homes, further exacerbating and compounding the housing problem.

To close, hiring a seasoned lawyer pays for itself on all the money you stand to save on avoiding the most common pitfalls of buying new build property in Spain. Whilst it is possible to buy property in Spain without using a lawyer, it would be very unwise to do so, particularly if you are a foreigner, as you would be gambling away with your life savings. I should also mention that lawyers’ fees are tax-deductible on selling the property (CGT)!

Make sure you are assisted in your house-hunting by reputable experts (such as a long-established real estate agency, a reliable mortgage broker or a seasoned conveyance lawyer) to benefit most from the wide range of available new builds – you will be spoilt for choice!

It is important you avoid being pressurised into completing; take your time to fully assess the information you are supplied, and do not hesitate to ask any questions. As a quick recap, I advise you to read our article 8 tips on buying new property in Spain.

And finally, as a golden rule for new builds, I draconianly advise not to complete without a Licence of First Occupation.

At LNA, our friendly team can assist you in buying (or selling) your property anywhere 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 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
1^st of May 2025

Introduction

The purpose of this article is to provide a general overview of the full legal procedure to buy resale property from a private individual. I leave for next month the procedure to buy property from developers (also known as off-plan, or new-build property).

The following article provides a basic outline of the procedure. If you are looking for concrete advice on a given matter, I highly advise you to follow the supplied links below for more details.

I have greatly abridged the procedure on purpose for ease of comprehension. However, if you fancy delving in greater detail, I advise reading (or downloading) our free Guide to Buy Property in Spain.

Resale property includes both urban and rural property. Urban property is far more expensive. Rustic property is normally riddled with legal problems which explains part of the price difference. If you are buying rural property, make sure you hire a lawyer before you sign any document! Be advised that rural property is a legal minefield in Spain. 

First stage: The Reservation Contract

After making enquiries and looking around for a resale property, you may have taken a liking to one. Properties are normally listed by property portals such as IDEALISTA, or local estate agencies. The real estate agency that has the property listed in its books will prod you to sign what is known as a reservation contract (or holding deposit), which strikes the property off the market (normally spanning 30 days).

The initial security deposit is a standard €3,000 but can be substantially more depending on the asking price (high-end properties command larger security deposits). The deposit contract is a succinct document that is normally only one page long. It has very few details, amongst them the properties’ legal details, the seller´s details, the asking price, and the 30-day reservation. The security deposit is deducted at completion from the asking price (see stage three below).

Pro-tips:

• The first thing a buyer needs to do is open a non-resident bank account. This is required to transfer the amounts for stages two and three below and also to arrange direct debits on the property and pay local taxes.
• It is strongly advised you hire an independent conveyance lawyer from the outset (prior to signing a deposit contract). On following this simple, yet essential, advice buyers stand to sidestep most blunders on buying property in Spain.
• Reservation deposits are normally non-refundable unless expressly worded otherwise.
• You, or your lawyer, need to apply for a NIE number (tax identification number for foreigners).
• An agency´s reservation deposit is a very simple document that should at no time list who pays what taxes and set out other purchase conditions. This is agreed by the parties in stage two (see below Private Purchase Contract).
• Request an Energy Performance Certificate from the estate agency. Properties with high energy efficiency ratings qualify for tax rebates of up to 20% on their local council tax (IBI tax).
• It is strongly recommended you hire a chartered surveyor to carry out a snagging list of the property; this is particularly true of older properties. If you are buying rural property, commissioning a surveyor's report beforehand is essential. This will avoid countless problems.
• Your lawyer will run a Due Diligence on the title to verify all is in order before moving on to the second stage. The title should be clean (free of charges, liens and debts). The golden rule in Spain is that debts and taxes always follow the property, not the owner. Which is why due diligence must be carried out.

Second stage: Signing a Private Purchase Contract

Before 30 days are up, you will be expected to sign what is known as a contrato de arras or Private Purchase Contract (PPC for short). In Spanish, this is also known as Contrato Privado de Compraventa. In the United Kingdom, this second stage is known as Exchanges. The PPC will be a long legal contract which will list the buyer and seller´s personal details, a full property description, the agreed sales price, the buying terms, the inventory, and the time frame to complete before a specified Spanish Notary Public. The buyer has the right to choose the notary.

Your lawyer will have normally already supplied you with a report on title, so you are perfectly aware of the legal situation of the property you want to buy before signing the private agreement.

Normally on signing a PPC you are expected to make a down payment equivalent to 10% of the purchase price, which will be deducted from the asking price upon completion (stage three, see below). The 10% down payment is non-refundable. If a seller pulls out of the sales contract - for whatever reason - he pays the buyer DOUBLE the amount of his 10% deposit.

If you need a mortgage loan to complete on the property, it is highly advisable you negotiate a reasonable time frame to secure it i.e. 45 to 60 days. This is particularly true if the borrower is a non-resident. A borrower requires an Offer in Principle (or Agreement in Principle) from his lender known as Oferta Vinculante in Spanish.

If movables are being sold along the property it is highly advisable an inventory is added to the PPC. This inventory needs to be drawn up in great detail to avoid any misunderstandings which may lead to litigation. This inventory will likewise be added to the Title Deed at the Notary Public on completion. The inventory is regarded as a contractual element which binds both parties. If the seller does not include on the sale a listed item, it will be regarded as a breach of contract. Inventories are drafted by the listing estate agent with photographs of each item plus a brief description.

Pro-tips:

• Failure to secure a mortgage loan in time may result in the loss of the 10% deposit unless expressly worded otherwise.
• If movables are being sold with the property, it is crucial that the inventory is detailed and accurate (with photographs).

Third stage: Completion

Completion is the term used to sign the Title Deed, which is witnessed by a Spanish Notary Public. Additionally, if mortgage finance is required, a second deed called a Mortgage Deed is also be signed at the notary office.

You should read carefully through the deeds before you sign anything. This is particularly true of a Mortgage Deed. Your lawyer should ensure you do not sign any abusive mortgage clauses.

At completion, you pay the balance of the asking price by banker’s draft (less the initial security deposit from stage one and the 10% from stage two). Completion is important because you take legal possession of the property, which is symbolized by being handed the house keys.

You may be surprised to find a great number of people waiting for you to sign at the notary office:

1. The seller and/or his lawyer.
2. The bank representatives (if a mortgage loan is required).
3. The estate agent
4. A translator
5. And finally, the Notary himself.

Pro-tips:

• It goes against a buyer´s best interests to under-declare part of the sales price at completion (besides being illegal). This only benefits the seller and will land the buyer with a huge Capital Gains Tax bill on selling. More on why in my article Taxes on Selling Spanish Property.
• Never agree to allow a seller to stay in your property post-completion. Even if it’s just for a “short time”. This can create massive legal problems for a buyer, which requires a full-blown court procedure that takes over a decade. This is detailed in our article: Possession: why you should never allow a seller to remain in a property post-completion.

Fourth stage: Post-Completion

Post-completion at the notary office, your lawyer will file and pay the buyer´s tax (ITP) and then lodge the title under your name at the land registry. Title registration normally takes several weeks.

Congratulations, you are now the official owner of a Spanish property. Enjoy!

You should open a Spanish bank account if you haven’t done so already. Utility companies do not accept overseas payments. You should set at least all the below as direct debits against your Spanish account:

• Utility bills (water, electricity, landline, gas, internet, etc).
• Rubbish collection tax. Paid once, or more times, a year depending on your town hall.
• IBI tax. Paid annually (akin to the UK’s Council tax). I strongly urge this tax is set up as a direct debit; failure to pay it may lead the authorities to auction off your property in a procedure which is surprisingly expedient – as in months. Whoever is the owner of a property on the 1st of January of the current year is liable to pay for this tax. This is explained in great detail in our article IBI Tax explained.

Pro-tips:

• On owning property in Spain, it is strongly recommended you make a Spanish will. This avoids your heirs a great deal of problems, saving them time, money and aggravation at a time of bereavement. Spanish wills are exclusive only to your Spanish estate. You are advised to make two wills; one in your home country and one in Spain dealing only with your Spanish estate.
• You should set as a direct debit all utilities and local taxes.
• You should set as a direct debit all local taxes on your property (such as IBI and garbage collection tax).
• On owning property as a non-resident, you should appoint fiscal representation to comply with your annual Non-Resident tax filing.
• If you plan to rent out your property as a private holiday accommodation, some regions in Spain have stringent laws on the matter – seek legal advice. ¡You may need to apply for a Tourism licence, or that you register your holiday rental home. Non-compliance attracts humongous fines.
• Resale buyers should be mindful of La Complementaria or Bargain-Hunter tax.

Associated tax and fees

As a rule of thumb, purchase costs add 8 – 13% over and above the asking price.

In some regions of Spain, this figure may be higher. Please take thorough legal advice to budget your purchase before you commit. You can read my article Taxes on buying property in Spain.

On buying resale property in Spain, buyers face the following tax and associated fees:

1. Property Transfer Tax (or ITP in Spanish)

It varies depending on the autonomous community where the property is located, ranging between 6% to 11%.

2. Fees

• Notary fees (to witness the sales deed): approx. 0.1 – 2 %
• Land Registry fees (inscription of the sales deed): approx. 0.1 – 2 %
• Mortgage & gestoría fees (if finance is required): 1 – 2 %
• Lawyer’s fees: 1 – 2 %

On selling property, almost all the above-listed items are tax-deductible. It is strongly advised that you keep hard copies of all the invoices above. This will greatly mitigate a seller’s Capital Gains Tax (19% tax rate for non-residents). More details in our taxation article: How to avoid capital gains tax when selling property in Spain.

Where to buy property in Spain?

Spain is a wonderful country that offers multiple enticing options catering to all tastes. It is not without good reason that Spain is the second tourist destination in the world!

You will be spoilt for choice: Barcelona, Costa del Sol, Granada, Madrid, Malaga, Mallorca, Seville, Sotogrande, or Valencia.

If you need a visa to stay in Spain, I advise you to read our article on the matter: Moving to Spain in 2025? Spanish visa overview.

Conclusion

Hiring a seasoned conveyance lawyer, in my experience, pays for itself with all the money you stand to save on avoiding the most common pitfalls of buying a property in Spain. Not to mention that lawyers’ fees are tax-deductible on selling the property (CGT)!

Make sure you are assisted on your house-hunting by reputable experts (such as a long-established real estate agency, a reliable mortgage broker, or a seasoned lawyer) to benefit most from the wide range of property bargains – you will be spoilt for choice.

It is important you avoid being pressurized into completion; take your time to fully assess the information you are supplied with and do not hesitate to ask any questions. Unlike in other countries, Spain has no 10-day cooling off period on buying property.

Spain is a buyer’s market now, with properties greatly appreciating year-on-year (on average by 8% and by two digits in large cities and coastal areas). At times of political and economic instability, people pile their savings in real estate, which is perceived as a safe haven.

At LNA, our team can assist you in buying (or selling) your property anywhere in Spain. Give us a call.

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specializing 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 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
1^st of April 2025

Introduction

On buying property in Spain, you should be mindful the title is clean. It is fairly common the previous owner is in arrears. In Spain, the golden rule is that debts follow the property not the debtor. Meaning, when you take over ownership, you also take on the mantle of all the existing debts from the previous owner. This is why you should hire a conveyance law firm - like us - to carry out a thorough due diligence on the title ensuring everything is above board.

1. Tenants. On buying property, the new owner takes on the position of landlord and must respect - by law - the duration of a pre-existing rental agreement. You should know some rental agreements in Spain lock you in for ten years… and you cannot update the rental.
2. Utility invoices (water, electricity, etc). Outstanding utility invoices are a nuisance as utility companies may shut down the supplies. Reconnecting the electric supply, for example, can set you back 500 euros and you need to wait at least 4 weeks to top it off.
3. Community of Owners. Properties within a community can be in arrears. The new owner takes on all the debts dating back five years, which can be substantial.
4. Local taxes. The property can be in arrears with taxes levied by the local town hall. In the worst case, the property can be impounded and sold off in a public auction to recoup the debt. The new owner is held liable for all taxes going back four years.
5. Title. It is important to acquire a clean title. Mortgages, embargoes, liens, etc can weigh down on a property’s value.
6. Banned holiday rentals. A new trend is developing in community of owners, whereby they agree to ban holiday rentals outright. There is no point investing in a nice beach pad if you are not allowed to rent it out. It goes without saying that a property which cannot be leased legally has a substantially reduced market values as opposed to other similar properties in the area which can.

I have only listed the basic six, but you should be aware there are far more points to look out for. Which is why we strongly urge you to contact an experienced law firm like ours on buying property in Spain, especially if you are a foreigner and are unfamiliar with the buying procedure.

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.

Raymundo Larrain gives a sweeping overview on how to sell property in Spain safely.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 21 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 © 2024. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
8^th of July 2024

Introduction

Today’s article mirrors last month’s Ten easy steps to buy property in Spain.

The following article aims to be a basic checklist covering what I reckon are the ten basic points, nothing more.

There are two taxes involved on selling Spanish property: Capital Gains Tax and Plusvalia Tax.

I’ve divided my article into five points pre-completion and five points post-completion.

As a word of caution, never hand over your house keys before completion (at the notary). As explained in our article: POSSESSION: why you should never hand over your house keys BEFORE completion.

Ten easy steps to sell property in Spain

I. Pre-completion

1. Hire an estate agent

Estate agents in Spain, for the most part, remain unregulated. This means that anyone can be an agent, but few stand the test of time

Good estate agents are proactive, they prove invaluable as they help to fetch a fair sales price in a short span of time (months). By contrast, bad agents are passive, and your house will be on sale for years.

A seasoned agent will decide on what’s the best market strategy to sell your property giving you all kinds of useful tips. Make sure you take to heart these tips, as they greatly impact on positive property viewings. Always ask your agent for feedback after each viewing, taking action where necessary to turn around negative feedback.

On selling, you need to list your property with a property platform such as IDEALISTA (Spain’s number one) or with one, or more, agents. Be mindful of giving an agent exclusivity on your property unless you are sure of what you are doing.

Hallmarks of reputable agencies:

• The estate agency has been around for a long time (years, even decades)
• Ask around for referrals from people you trust
• Member of RICS, which works to (high) British standards
• Member of LPA (Leading Property Agents), or similar
• Glowing reviews and stats across multiple platforms (Trustpilot, Google reviews, etc)
• Excellent contact network
• Superb local market knowledge

Do not trust estate agencies that flaunt shady ’real estate awards’. Every week I'm emailed three of these ‘international awards’ in exchange for money.
Remember, unlike in other countries, estate agents work only for the seller.
Agent’s fees are 100% tax-deductible on selling your property in Spain.

2. Hire a lawyer

Hiring an independent lawyer is the best advice I can give you. If you are a non-resident in Spain (particularly a foreigner), you are strongly advised to instruct a lawyer to assist you through the conveyance procedure. Lawyers are regulated by professional bodies, subject to disciplinary action. Lawyers have professional indemnity insurance in place in the event of malpractice or negligence. Your appointed lawyer can do all the following, and more:

• Line up all the required documents
• Avoid payment scams
• Avoid abusive sales commissions
• Avoid possession issues
• File a 3% tax rebate
• If selling at a loss, filing a tax rebate on the Plusvalia Tax
• Dealing with other lawyers, tax office, agents, banks, notary, community of owners, town hall, etc.
• Dealing with utility companies (water, electricity, gas, landline, etc)
• Discharge a pre-existing mortgage on the property. Buyers demand a clean title, they don’t buy with a mortgage against it
• (Greatly) mitigate the seller’s Capital Gains Tax liability (on average reduce your tax bill by 70% or more)
• Negate the CGT on reinvesting the sales proceeds on a new main home (even outside the EU i.e. in the United Kingdom).

Lawyer’s fees are 100% tax-deductible on selling your property in Spain.

3. Price to sell

It’s of critical importance a seller adjusts the asking price to match market expectations.

I understand - and it is perfectly human - that owners have a penchant towards overpricing their property, all the while overlooking its flaws. However, if you want a smooth sale within a reasonable timeframe (3 months), you must pick an asking price that matches a realistic valuation. Otherwise, you can be waiting for years on end until the property is sold. It is not uncommon to hear people have waited over a decade to sell in Spain (because they did not price the property correctly).

In my professional experience, properties that have been on the market for too long (6 months plus) become a stale listing which acts as poison; would-be buyers start wondering if there is something wrong with the property which drives the sales price in a downward spiral. Unrealistic pricing leads to long sales times.

Remember, be smart, price to sell.

4. Tax compliance

It is strongly advised that sellers are up to date with their tax and maintenance expenses. If you are in arrears with your taxes, this may impact adversely your tax rebates post-completion (see below).

Buyers, on running a due diligence on the title, will get a poor impression when a seller has fallen in arrears. Moreover, in some cases, falling in arrears may even jeopardise a house sale i.e. when a buyer needs a mortgage loan to complete (lenders do not borrow against properties with debts).

5. Documents to sell

As mentioned in the first point above, your lawyer can (greatly) assist you in collating all the necessary paperwork to sell.
The following list is not exhaustive:

• Full scanned copy of your title deed
• Copies of your national ID, passport, NIE number
• Copy of recent utility invoices
• Copy of IBI tax invoices
• Copy of Refuse Charge (Basura, in Spanish)
• Energy Performance Certificate
• Licence of First Occupation
• Scanned copies of the minutes of the last three General Assemblies
• Community of Owner’s Certificate stating the property being sold is not in arrears
• Spanish fiscal residency certificate (to avoid a 3% retention on the sales proceeds)
• Etc.

If all the above points check out, you are ready to roll. A property sale follows three stages in Spain:

1. Sign a reservation contract: in exchange for getting paid €3,000 or €6,000 (dependent on the sales value) you reserve the property over the next 30 days, during which the sales contract must be signed. This is a simple one-page document drafted by the listing estate agency.
2. Sign an arras contract (sales contract): the buyer makes a non-refundable 10% deposit. This detailed contract stipulates a day and time to sign at a notary plus all the sales conditions. This contract is drafted by the buyer’s lawyer.
3. Completion at a notary office. The balance of the asking price is paid and the keys are handed over (possession).

II. Post-completion

6. Capital Gains Tax mitigation

CGT for non-residents is 19%. Again, your lawyer will assist you in gathering all the necessary paperwork to bring down your CGT liability on selling, within the law. Your lawyer can reduce your tax bill by 70%, or more. This is explained in detail in our article Capital Gains Tax mitigation on selling (or gifting) property in Spain.

7. Plusvalia Tax rebate

If you are selling at a loss, you can file a tax rebate on the Plusvalia Tax you’ve paid.

8. 3% tax rebate

By law, buyers withhold 3% of the sales proceeds if a seller is a non-resident. A lawyer can file a tax rebate on the seller’s behalf on all, or part, of the 3%. If a seller is in arrears with his property taxes, this precludes a tax rebate.  This is explained in our taxation article: How to file a 3% tax rebate on the sales proceeds of your Spanish property.

9. Serve legal notice to your community on the house sale

Your lawyer can notify them on your behalf. The reason on why this is necessary is so that all the new invoices they raise are against the buyer, not against the seller. This ringfences your liability.

10. Closing your Spanish bank account & dealing with transfer of utilities

Your lawyer can advise you on this. If you close your account too early, you will jeopardise the tax rebates from the Spanish Tax Office (meaning you lose all your tax refunds!).

Again, your lawyer can ensure the utilitie's contract transfer is smooth, avoiding payment issues or supply disruption. 

Conclusion

If you plan to sell property in Spain, and are a non-resident, contact us to assist you in the legal procedure. We act nationwide.

At LNA we make it all easy, so you just have to sit back and relax. We take care of everything removing all the associated stress.

Not to mention our fees are 100% tax-deductible on selling!

Contact us at LNA (calling either our UK or Spain landline) and one of our friendly staff will chat with you.

21 years of experience at your service.

Related services available from LNA:

• Conveyancing in Spain – Buying
• Conveyancing in Spain – Selling

“Même s'il me faut lâcher ta main / Sans pouvoir te dire à demain / Rien ne défera jamais nos liens (...) L'amour est plus fort que le chagrin.” – Françoise Hardy

Françoise Madeleine Hardy (1944 – 2024).  Born in Paris, was a gifted French singer-songwriter and actress. Mainly known for singing melancholic sentimental ballads (Tous les garçons et les filles), Hardy rose to prominence in the early 1960s as a leading figure of the yé-yé wave, and went on to become a cultural icon both in France and internationally. In addition to her native French, she also sang in multiple languages. Aussi belle que douée.

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. Soyez réalistes, demandez l'impossible.

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