Property Law updates in Spain
While there are many similarities in the property acquisition processes of most countries, it is the small, apparently innocuous differences that can trip-up the unsuspecting investor and cause catastrophic financial damage. For this reason, we set-out when and where property buyers - especially those from outside Spain - ne... Read More
Negotiating the Purchase Price When you are buying a property in Spain you must bear in mind that you will be asked for two deposits: An initial deposit of between 1,000 and 3,000 euros as a "reservation fee". A second deposit of 10% of the property price. Once this first deposit has been made, you can make your offe... Read More
In general, buying a farm in Spain is a process more complex than purchasing a rural property here since, in addition to the usual due diligence required to buy a rural property, other legal matters have to be considered. Such legal considerations will vary according to the kind of livestock included in the sale: pigs, chicke... Read More
Recently we have advised a non-resident client based in Belgium regarding a buy-to-let operation he was wished to develop in Spain. His investment plans were to purchase an apartment in a town of Cantabria (Spain) by the sea, and later to lease the property to tourists for short term and vacation purposes. The problem started ... Read More
Once someone is selling house in Spain, this decision will probably come from the urge to go back to one's home country for whatever important reason. Or perhaps it is a market triggered decision due to the chance of getting a considerable profit margin when prices raise, or the other way round when economy falls. For example, ... Read More
We recently assisted a client who was buying property in Spain - specifically he wanted to buy land in Spain - but was concerned about the impact of Spanish law as the land was situation in the green-belt and where there was a cabin which he intended to convert into his habitual residence. Unfortunately he carried out the purcha... Read More
Buying land in Spain on the coast could be the key to having a golden retirement, with a nice house, the possibility to generate some useful additional income from tourist rentals...unfortunately problems may arise along the way and you should be prepared! Many of our clients have a very similar idea - the perfect plan to retire... Read More
Feel free to browse and/or download this presentation about Property Taxes in Aragón, from our Tax expert- English speaking lawyers in Aragón, Spain. You might be interested as well in this reading: Spanish Inheritance tax Aragón.... Read More
Feel free to browse and/or download this presentation about Property Taxes in Asturias, from our Tax expert- English speaking lawyers in Asturias, Spain. You might be interested as well in this read: Spanish Inheritance taxes overview .... Read More
Selling property in Spain? Are you in good hands? Why Choose Advocate Abroad? The independent lawyers and law firms who are members of the Advocate Abroad® network in Spain represent the perfect mix of Experience, Value for Money and Proficiency in English. When you contract a lawyer on the Advocate Abroad® network you wi... Read More
Each property owner, by virtue of being an owner, and from the moment that, upon acquiring a home or commercial property in the relevant building or urbanisation the owner becomes part of the horizontal property regulations, the obligation to pay the common costs arises, “...it not being the case that failure to make use of an... Read More
Introduction It is not uncommon for property purchasers in Spain to come across the situation where the property that they are interested in purchasing does not appear to be registered in the Land Registry. So, is it a good idea to buy property in Spain when you don't have all of the expected certification? Ultimately it dep... Read More
Banks' Legal Obligations Those who bought an ‘off-plan’ Spanish property but never in fact received the completed property may have a legal remedy to obtain the return of any deposit paid as a deposit. Article 1 of Law 57/1968 regarding the receipt of advanced payments towards the construction and sale of residential prope... Read More
Don't waste profits! Whether you are selling a property in Spain yourself or leave it in the hands of an estate agent, for those selling property in Spain tax implications must be considered to avoid losing any profit obtained from the sale of the property. Furthermore, a number of questions arise that should be considered a... Read More
If you are in the process of a buying property in Spain, please note that purchasing property in Spain can entail significant costs - not least government taxes - not only in the purchase but also in the event of the eventual resale. Better to go in with your eyes open, as they say! This summary also explains your annual tax fi... Read More
Over the past month we have had various clients ask for advice on ending their contract with their landlord. We have therefore put together the following guidelines to prevent any issues that may occur between your landlord and yourself when leaving a rented property: The day before your contract ends or the day bef... Read More
If you are thinking of renting-out a property in Spain , then normally this type of activity would be considered to be exempt from VAT. However, that will not be the case if your tenant decides to begin carrying-out a business activity in the rented property. In this case , you have the obligation to deduct VAT and then mak... Read More
Many property purchasers (and also beneficiaries under Wills or those who have been gifted property) in the Valencia Region received a “supplementary tax demand” for the stamp duty (Impuesto de Transmisiones Patrimoniales) or the inheritance and gift tax (Impuesto sobre Sucesiones y Donaciones). This tax demand has been iss... Read More
Foreign investors are increasingly interested in buying a rural property in Spain, with land upon which the new owners will be able to not only farm, but also enjoy the peace and tranquility that nature provides. While the purchase cost of buying property in Spain can be lower in rural areas, there are other considerations t... Read More
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Ibiza Properties May Have Irregular Planning Applications If you are buying property in Ibiza, it is very important to conduct a preliminary inquiry into its legality before making any payment or assuming any obligations. On this island there are a large number of properties or extensions to properties that do not comply wit... Read More
Planning Laws to Protect the Tourism Industry Over the last decade, various laws have been brought in to protect the tourist industry in Gran Canaria - potentially to the detriment of the Gran Canaria property market. However, many of these laws did not have the impact hoped for, since in order to be effective, they required... Read More
If you are planning to buy a property in Spain, we recommend that you take the following steps in order to ensure that your purchase is safe and secure, conferring good title that you may sell again in the future or transfer to your loved ones without any hitches: Contact a lawyer in the area you wish to inv... Read More
Firstly it is necessary to consult a lawyer who can review the lease and determine the exact situation and the legal options available. In Spain the legislation that regulates leases is the Law of Urban Leasing: Ley 29/1994 - Ley de Arrendamientos Urbanos (LAU). This law establishes that the duration of a lease shall be that pe... Read More
Not to be considered a sideshow, this kind of notification sits on top of the eviction process in Spain. Spanish eviction notice requirements must be perfectly met in order to arrange an unordered situation which can be -yes, unfortunately sometimes very sensible Social Care related- in worst cases product of serialised unscr... Read More
A client contacted us recently for assistance with obtaining an NIE number. They had bought a property in Fuerteventura back in 2002 when it was not an obligation to possess an NIE when carrying-out this type of transaction. I requested a simple Certificate of the property deeds from the Land Registry as this had to be attach... Read More
The Supreme Court has rejected an appeal by the seller of a property in Almeria ordered to pay damages for selling a property despite not being named on the property register. The property was sold originally in 1978 but it was many years later that the new owners of the property were served notice to vacate the property at whi... Read More
Spanish Property Buyer's Deposit Refunded as no license of first occupation The Supreme Court in Madrid has refused an appeal by the developer of La Reserva de Marbella, and confirmed the decision of the Regional High Court in Malaga that the company must refund the buyer's deposit that they had handed over in 2003 for the pu... Read More
A couple in the La Rioja region of northern Spain who attempted to have a contract for the purchase of an off-plan apartment declared null and void due to delays in completing the apartment have had their appeal to the Supreme Court turned down. The court heard that the couple had agreed to purchase the off-plan property in Aug... Read More
One important aspect of the new law on Renting Out Property in Spain: Law 4/2013 (Measures to Increase Flexibility and Develop the Rental Market) introduced earlier this year, and commented upon in an article on new Spanish rental laws, has been the exclusion of its application on the holiday rental market. Introduced as an ... Read More
The High Court in Álava province (Basque Country) has declared a so-called 'clausula suelo' - or mortgage floor clause - null and void and ordered the bank in question, Liderbank (formerly Caja Extremadura), to return €17,000 that it received from the customer as a result of the clause that was contained in the mortgage agree... Read More
As a result of the property bust, Spain has an estimated three-and-a-half million properties lying empty and the government has finally put actions into words by approving a new law aimed at promoting the rental market. At the moment only 17% of all properties in Spain are dedicated to tenants and the idea behind the new legi... Read More
The National Council of Public Notaries in Spain has issued a circular to all practicing notaries to the effect that the new laws relating to foreclosures approved judicially should be extended to 'non-judicial' foreclosures. The new rules have a number of effects, the most important perhaps being that the minimum value that may... Read More
Many people choose to rent in Spain when they arrive rather than buying as they want to get an idea of the area before making a long term commitment. So it is a good idea to understand how the rental market in Spain works and what to expect from a Spanish rental contract as otherwise you could end-up spending a lot more than you... Read More
In a decision that may have important implications for those who have been buying property in Spain, a contract for the purchase of an apartment in Malaga has been declared void by the Supreme Court as a result of the property in question not conforming to it's description in a sales brochure as having 'sea, mountain and golf co... Read More
As part of an initiative to improve transparency and security for those interested in investing in Spanish real estate, the Spanish land registry, with over a thousand offices , will provide the information it maintains on properties across Spain in English. The new service, which was announced by the Ministry for Development, h... Read More
For the second time the Spanish courts have ruled that so-called ‘cláusulas suelo’ or clauses used in variable rate mortgages that set a minimum below which mortgage rates may not fall are unfair and therefore void. Banks and other financial institutions have traditionally included such clauses in their mortgage agreements ... Read More
Practical issues When Selling Property If you are planning on selling your property in Spain during 2019, this guide will cover the main points that you need to consider – from estate agents to Property Law expert lawyers and from taxes to utility bills. The aim is to aid anyone starting from scratch who perhaps isn't sure wh... Read More
While buying a house in Spain continues to be popular - despite the impact of Coronavirus - in particular, demand for property in the Valencia region has been increasing steadily over recent years - perhaps a reflection of the increasing interest in the Capital City as the perfect balance offering city conveniences but without t... Read More
It has to be said at the outset that buying a house in Spain is not always plain-sailing. The main problem here is dealing with one of those tricky - yet often obscure - issues that may turn your purchase into nightmare. Having spent many years advising house buyers in Mallorca on their conveyance, it can become a little dishear... Read More
People tend to have a variety of reasons for buying a house in Spain, though it is fair to say that many who are buying a house in Ibiza do so both as a business - by renting it out during the holiday season to earn some money – and as a holiday home to enjoy during the off-peak season in this sunny and warm island. If you f... Read More
When you are buying a property in Spain you must bear in mind that you will be asked for two deposits:An initial deposit of between 1,000 and 3,000 euros as a "reservation fee".A second deposit of 10% of the property price. The initial deposit will be required if you have found the property through an agency. They will tell... Read More
IntroductionKnown in Spanish as the Ley de Arrendamiento Urbano (LAU 29/1994)* this law forms the basis of the rules that regulate landlord and tenants rights in Spain. In Spain the leasing of a property for residential purposes is distinguished from other types of leases - such as commercial businesses, for example. A lease is ... Read More
No Express ProhibitionIn a recent decision the Supreme Court has confirmed that for owners of properties in urbanisations, in certain circumstances the law of horizontal property does permit the change of use from that of a commercial property or 'local' to a residential property.The case came before the Supreme Court in October... Read More
Civil CodeWhile much time has been spent here and in other publications discussing the legal aspects of renting a property in Spain, we often overlook an ever-more common situation whereby a property owner decides to rent out a room to a lodger.Due to the ever increasing rental costs in Spain and the need for owners to supplemen... Read More
The Spanish Supreme Court has set-out rules that the banks must comply with in order that they may rely on the so-called 'Cláusulas Suelo' , which are clauses in the mortgage agreement which allow the banks to limit the extent to which their borrowers can benefit from the extremely low interest rate environment currently prevai... Read More
Spanish Regional Tax SystemThe recent changes made by the Spanish government to the property sales tax make it a good time to review the taxes relating to buying property in Spain . While quite straightforward, the matter is complicated by the difference in treatment of the sale of a new versus a second-hand property, as well as... Read More
Feel free to browse and/or download this presentation about Property Taxes Alicante, from our Tax expert- English speaking lawyers in Alicante, Spain. You might be interested as well in this read: Spanish Inheritance taxes Alicante.... Read More
Feel free to browse and/or download this presentation about Property Taxes in Andalucia, from our Tax expert- English speaking lawyers in Andalucia, Spain. Additional reading that you may find useful: Buying a House in Spain.... Read More
Feel free to browse and/or download this presentation about Property Taxes in Canary Islands, from our Tax expert- English speaking lawyers in Canary Islands, Spain. You might be interested as well in reading: buying a house in Spain and/or buying a house in Tenerife.... Read More
Feel free to browse and/or download this presentation about Property Taxes in Catalonia, from our Tax expert- English speaking lawyers in Catalonia, Spain. You might be interested as well in this read: buying a house in Spain and/or buying a house in Barcelona.... Read More
Feel free to browse and/or download this presentation about Property Taxes in Ibiza, from our Tax expert English speaking lawyers in Ibiza, Spain. You might be interested as well in this read buying a house in Spain and/or buying a house in Ibiza.... Read More
Feel free to browse and/or download this presentation about Property Taxes in Mallorca, from our Tax expert- English speaking lawyers in Mallorca, Spain. You might also be interested in reading: Buying a House in Spain and/or Buying a House in Mallorca.... Read More
Feel free to browse and/or download this presentation about Property Taxes in Murcia, from our Tax expert- English speaking lawyers in Murcia, Spain. You might be interested as well in this read: buying a house in Spain and Spanish Inheritance taxes Murcia.... Read More
Are you buying a house in Spain - specifically, one in Barcelona? Have you heard of 'Aluminosis' (it affects buildings' structures)? If not, watch this video where Lawyer Oscar explains what you need to know.Barcelona is a magnificent city which, due to its climate, location by the sea and near to snow resorts, culture, food a... Read More
Buying a property in Spain is as popular today as ever among British people. Statistically, Brits make up for 14% of all foreign property investors in the country. It seems that not even the Brexit referendum can put them off. While buying a house in Spain has undoubtedly additional complexities when compared to buying a house ... Read More
What is Eviction? Evictions in Spain are the judicial processes by which a landlord may have a tenant removed from their property for breach of the rental contract, usually failure to pay the agreed rent. The landlord may then use the property either personally or rent it to another tenant. All that is typically require... Read More
Typical reasons given for buying a property in Spain include the fact that the average price of the properties are lower than most of northern Europe, the good weather and the lifestyle. However, before making a decision regarding purchasing a property in Spain, we recommend that you consider carefully the reasons why you are pu... Read More
Having assisted clients for more than 15 years in Lanzarote, there are a few things you should know because purchasing a property here. Please find below some advice that will help you to avoid any problems when buying a house in Lanzarote, or indeed when buying a house in Spain.Know the Costs of Buying a House in LanzaroteCosts... Read More
Galicia is well-known in Spain for its gastronomy, astonishing landscapes, beautiful beaches and its valued architecture. Because of these features, lots of clients contact us showing interest in a house or plot located in the area. In practice, we usually find out that most of the properties lack relevant documentation, givin... Read More
Did you pay in advance in order to acquire a property that eventually was not built? In spite of the fact that this situation might sound strange, this problem has been arisen with great frequency in the Spanish courts recently due to the effects caused by the economic crisis of 2008 and probably in the coming months because ... Read More
After buying a house in Spain, you will, unfortunately, become subject to a number of taxes. This would be in addition to the government property transmission tax that you pay on the value of the property at the time of the purchase. This can vary according to region - you can find some additional information for popular areas h... Read More
Feel free to browse and/or download this presentation about Property Taxes in Galicia, from our Tax expert- English speaking lawyers in Galicia, Spain. You might be interested as well in this reading: Spanish Inheritance tax Galicia.... Read More
When someone buys to let, not only in Spain, but anywhere in the world, they must take into account several factors:ProfitabilityFirstly, the profitability that can be expected in Spain for renting a property is between 1% and 10% of EBITDA (earnings before interest, tax, depreciation and amortization). Of course, these are extr... Read More
Any landlord who lets out a residential or commercial property must deal with minor issues, however, at times they must face more serious problems. Within the latter category lies the situation where the tenant either fails to pay the due rent or continues to live in the property when the term of the lease has expired. Additio... Read More
The High Court in Mallorca has ruled against a tenant's claims to have a right to stay in the defendant landlord's property for a period of five years as per the then pertaining legislation which gave tenants a right to continue living in a property for a period of five years.The Court heard that the tenant alleged to have agree... Read More
Introduction - ITP & AJD Tax Rates by RegionThe Spanish central government devolved legislating powers for the setting of property tax rates to the seventeen autonomous regions of Spain (Real Decreto Legislativo 1/1993). This means that the rates can vary from region to region with each local parliament offering in some cases ta... Read More
The Spanish Housing MarketWhile the motivation for most foreign buyers of Spanish property tends to come about as a result of having visited Spain as a holiday destination on one or more occasions, and had a wonderful experience, if you really want to buy property in Spain, then you need to take off the holiday sombrero and make... Read More
While many countries have similar protections in place for property conveyances, the apparently minor pitfalls of buying property in Spain can really cause the most awful damage to an individual's finances.And so, to help avoid such a catastrophic outcome, below we highlight specific pitfalls that lie in wait for anyone buying... Read More
All may not be what it first appears: read about the problems to avoid when buying property in Spain. There may be some critical problems that will change your plans completely. Keep reading and always seek professional advice. The better the deal, the more likely you will need independent legal advice.Due to a central location... Read More
Feel free to browse and/or download this presentation about Property Taxes in Valencia, from our Tax expert- English speaking lawyers in Valencia, Spain. Additional reading that you may find useful: Buying property in Spain and/or buying a house in Valencia.... Read More
The Spanish government has introduced a new law that will overhaul certain aspects of the so-called ‘Express Eviction’ laws introduced in 2009 to speed-up the existing eviction process that saw non-paying tenants able to delay having to leave the property for well over a year. In plain words, evicting a Tenant in Spain has ... Read More
Minimum Fiscal ValueSince way back in the economic crisis of 2007, Spain’s banks have been forced to take back a huge number of properties on to their books. Of course the banks typically have no desire to take over management of the often under-performing assets that they had made loans against and so these same banks are u... Read More
If you are buying a house in Spain, for a more complete guide, please see: Buying a House in Spain.Due DiligencePrincipally an independent solicitor in Spain will ensure that all appropriate due diligence is carried-out. This broadly falls into two categories: ensuring that the seller has good title to sell and that the property... Read More
In this and subsequent articles, we will be detailing various aspects of the Community of Property Owners - as regulated by the Horizontal Property Law - a fundamental institution in Spain that exists to regulate the rights and obligations of the individual owners of properties in a building or within a number of buildings inclu... Read More
IntroductionWhen a villa is being purchased in Spain then the legal responsibilities of the owners may often end at the boundaries of their residence. However, it is more usually the case, especially in Spain, that the property, whether an apartment or a detached residence, is located within an urbanization. The owners of prope... Read More
Quite a large percentage of UK buyers planning onchoose Mallorca.Mallorca, also known as Majorca, is the largest of the Balearic Islands in Spain, situated in the Mediterranean Sea. With its mild climate, breathtaking landscapes, and relaxed lifestyle, Mallorca has become a top destination for both tourists and expats alike. I... Read More
Whether you are seeking a property in the coastal areas of Tenerife or if you want to enjoy the diversity of large cities (Santa Cruz de Tenerife), the steps to follow are not always intuitive. In addition, it is important when buying a house in Spain to consider what taxes and expenses have to be dealt with. All this and much... Read More
According to the WEF (World Economic Forum), Spain has continued to be the most competitive country in the tourism sector, with it's wonderful coasts, excellent gastronomy, culture and sun. It is the second most visited country as far as tourism is concerned, and has developed infrastructure for an economy focused on tourism. Sp... Read More
If you are buying property in Spain and you choose Tenerife as your ideal location, you should research the matter thoroughly before arrival on the island. A common misconception made by first-time buyers is that the purchasing process is the same in Tenerife as in their home country. This can often lead to mistakes that eithe... Read More
Buying a property in Spain can have a number of different motivations, from holiday home to relocation. However, it is fair to say that we all want to achieve this at the best possible price, while avoiding the many pitfalls of buying property in Spain.Inheritance TaxesThere certainly are advantages to buying a Property in Spain... Read More
While there are many similarities in the property acquisition processes of most countries, it is the small, apparently innocuous differences that can trip-up the unsuspecting investor and cause catastrophic financial damage. For this reason, we set-out when and where property buyers - especially those from outside Spain - need t... Read More
The process of buying property in Spain typically creates many questions and concerns for foreign citizens, especially if they are not used to the Spanish system and regulations. There are many details to be dealt with during the process: not only making sure that the property is free of any mortgages or other charges, but al... Read More
The decision to pursue a mortgage in Spain can be both exciting and challenging, as there are various pros and cons to consider before diving into the process. On the positive side, Spain offers a favourable mortgage market for foreigners, including non-residents, with relatively low interest rates and various mortgage options a... Read More
The Property ValuationThe amount charged by the notary is controlled by law and varies according to the price of the property. The minimum amount chargeable for the carrying out of a valuation is €208 and will ultimately depend upon the following factors:Not all surveyors or survey companies charge the sameThe location of the ... Read More
If you are planning on selling Spanish property, this guide will cover the main points that you need to consider – from estate agents to lawyers in Spain and from taxes to utility bills.Advertising the PropertyAnyone who has spent any time in Spain will have seen the Se Vende signs protruding at various angles from houses and ... Read More
IntroductionAre you thinking of buying a property in Spain? If so, you’re not alone. Every year thousands of people from all over the world flock to this Mediterranean country for its stunning beaches, vibrant culture and delicious cuisine.Expat buyers considering an investment in property in Spain - whether British or EU ci... Read More
A common enquiry received from our English-speaking clients who have decided to end their joint ownership of property in Spain is: what legal options do we have to terminate the co-ownership, and what are the tax and legal consequences of doing so? The most common situation is a co-ownership with two people owning 50% each, typ... Read More
Having decided that you are buying property in Spain and then having found a suitable property that you are interested in, it is usual to have some doubts about the amount that you should initially offer to the seller. How much to offer to those selling Spanish property? Even though in Spain we are not in the habit of thinking ... Read More
Thinking about buying property in Spain? These are the 8 steps to follow: buying a property in Spain for dummies will help you to get started. Expert English-speaking lawyers with ample experience in buying and selling Spanish property have put together this brief bullet list featuring the steps that you have to follow:Appl... Read More