Buying property

If you intend to purchase a property in Spain you are strongly advised to engage an independent local lawyer. The Foreign & Commonwealth Office can not give legal advice on buying a property in Spain.

British nationals purchasing property in Spain are strongly recommended to deal only with established and reputable estate agents or with other contacts whom they know to be reliable and genuine, and to make all payments within bank premises and/or through banking channels. 

Make sure that the full purchase price of the property is reflected on the escritura (deeds) and do not pay 'black money' in cash to the seller, even if persuasive arguments about taxes are advanced: you could end up having to pay the capital gains tax that should have been paid by the person from whom you bought your new home.

In the Valencia Autonomous Community (the Provinces of Castellon, Valencia and Alicante) and, increasingly, in other parts of Spain your land tenure rights can be severely curtailed by local legislation.  Should your ownership of property in these Provinces be threatened by local legistation you should engage the services of a lawyer immediately. Also, you should contact the NGO, Abusos Urbanisticos No for more information and details on how they may be able to help. Please note that the British Consular Services cannot help specific property cases.

Timeshares

Timeshare ownership is well established in Spain with many known and respected companies, agents and resorts operating legally, fairly and successfully.  However, there are equally many unscrupulous companies in operation, some of which claim to provide various incentives (including stock market investments and discounts on airfares and accommodation) when exchanging existing timeshare ownership or taking out membership of holiday clubs.  More often than not, such inducements do not materialise once a deal has been signed and sealed.  If you are approached by agents operating such schemes, you should treat the approaches with the utmost caution.

Rentals

Rented accommodation is regulated under the Ley 29/1994, de 24 de noviembre, de Arrendamientos Urbanos LAU 1994

Dos and Don'ts

DO

• use the services of a reputable independent local lawyer. Avoid lawyers suggested or provided by the seller.  Only an independent lawyer will know all the checks that should be made before parting with money
• remember that you will have to use the services of a Public Notary. The Notary is not acting for you, and will not give advice. He/she is an official of the state whose job is to ensure that all transactions are in the proper form. Parties to a sale and purchase should appear in person before the Notary at the same time. Alternatively they can give power of attorney (in the Spanish form) to their lawyer (or anyone else) to represent them
• use a reliable and established estate agent
• unless you speak fluent Spanish, always have documents explained to you by someone you can trust.  It is worth the expense of having lengthy documents translated, e.g. title deeds, so that you understand fully what the original documents say and mean
• ask your lawyer to confirm with you, in writing, that there is no mortgage or other charge or encumbrance registered on the property you are intending to buy, that is registered in the name of the seller, and that there are no outstanding local taxes or capital gains tax (plusvalía).  Make sure that all the community payments are up to date (note: Jan 2007 tax will be the same for resident and non resident - 18%).
  

Don’t

• think you can buy a property without taking independent professional advice. If you do, you could end up with no property and no money
• part with any money unless you are absolutely sure what you are getting for it and have received professional confirmation that everything is in order
• buy under pressure from the seller.
  

Further information

Association of Spanish Property Owners
West Heath House
32 North End Road
London NW11 7PT
United Kingdom