Buying a flat or a house in Spain begins well before you set foot in a notary’s office. Before the buyer signs the Escritura de compraventa and receives the keys, it is worth confirming who the actual owner of the property is, whether there is a mortgage or seizure on it, whether its status in the registers corresponds to reality, and whether there are any planning issues or outstanding debts to the owners’ association. This is particularly important for those buying property abroad for the first time. The Spanish system is well-structured, but the responsibilities of the notary, solicitor, estate agent and buyer are not the same. Therefore, before making a purchase, it is worth knowing not only which documents need to be prepared, but above all how to check the property itself.
What will you read about in this note?
In the case of a foreign buyer, the key requirements are, first and foremost, a valid identity document and an N.I.E. (Número de Identidad de Extranjero). This is an individual identification number for foreign nationals, used in dealings with the Spanish authorities and in transactions with financial and tax implications. An N.I.E. can be applied for in Spain, through a duly authorised representative, or via a Spanish consular post in the country of residence.
In practice, when purchasing property in Spain, it is necessary to provide documents confirming the source of the funds intended for the transaction. These may include, amongst other things, documents relating to income received, business activities, accumulated savings, the sale of another property, or a gift or inheritance received.
The obligations in this regard arise from European Union legislation on anti-money laundering and countering the financing of terrorism (AML), which have been transposed into Spanish law, in particular by means of Law 10/2010 of 28 April 2010.
These regulations apply, amongst others, to notaries, financial institutions, professional estate agents and lawyers involved in specific transactions. As part of their verification procedures, these entities may request information and documents concerning both the method of payment and the economic origin of the funds used to purchase the property.
If the buyer is married, it may also be necessary, in certain situations, to provide evidence of the financial relationship between the spouses. In the case of separate property, the relevant documents are required, and any document drawn up outside Spain must be accompanied by a certified translation and – depending on the type of document – appropriate authentication.
If the purchase is to be completed by an authorised representative, a properly drawn up notarised power of attorney will also be required.
A Spanish bank account is very convenient and, in practice, makes it easier to pay for purchases, taxes, utility bills and future IBI. However, it should not be confused with an identification document such as the N.I.E. The range of bank documents required also depends on the specific bank and the method of financing the transaction.
From the point of view of investment security, the documentation relating to the property itself is far more important.
One of the key documents is the ‘nota simple’, which is a certificate issued by the Spanish Registro de la Propiedad. It enables you to ascertain, amongst other things, the details of the property, its current owner, the scope of the owner’s rights, as well as any registered mortgages, usufruct rights, restrictions or other encumbrances.
It is worth noting an important distinction here: a ‘nota simple’ is for information purposes only. If it is necessary to formally demonstrate the status of the register to third parties, a ‘certificación registral’ – that is, an official certificate – carries greater legal weight.
The data in the Catastro should also be checked, including the area and boundaries of the property and its cadastral reference. The cadastral data should be compared with the information in the Registro de la Propiedad and with the actual situation on the ground. Any discrepancy between the area recorded in the documents and the actual area may require further analysis.
There is no general legal obligation to instruct a solicitor when purchasing property in Spain. The transaction can be carried out without the involvement of an independent law firm. However, this does not mean that it is advisable to forego a legal due diligence check on the property, particularly when the buyer is a foreign national who is unfamiliar with the Spanish legal system, local procedures or the documentation required for the transaction.
A property due diligence check in Spain should be carried out before signing any documents that impose significant financial obligations on the buyer. This is particularly important before entering into a contract, as failure to do so could result in the loss of the deposit paid or an obligation to complete the transaction. The aim of such an analysis is to identify any potential issues at a stage when the buyer still has the opportunity to adequately safeguard their interests.
In practice, an independent law firm acting on behalf of the buyer may verify, amongst other things, the seller’s title to the property, any mortgages and other encumbrances disclosed in the register, the consistency of data in the Registro de la Propiedad and the Catastro, the property’s town planning status, any outstanding tax or community fees, and documentation relating to the property’s use. The analysis may also cover the reservation document, the ‘contrato de arras’ and other contracts presented to the buyer for signature.We also describe this model of the property purchase process in Spain in the Agnes Inversiones guide, in which we outline the successive stages of the transaction – from selecting a property to signing the notarial deed.
The role of a lawyer is therefore not limited to gathering documents. It is also important to determine whether the information contained in the various registers and documents is consistent, what consequences any irregularities found may have, and whether these need to be clarified or rectified before the transaction is finalised.
This is one of the most common questions asked by Polish clients. A Spanish notary is impartial. They ensure that the transaction complies with the law, verify the identity and authority of the parties, analyse the property’s registration status, verify certain documents and inform the parties of the consequences of the deed being signed.
The buyer’s solicitor has a different role – they represent the interests of a specific client.
This is an important distinction. A notary does not negotiate solely on behalf of the buyer, nor does he or she select the best method of securing the transaction on the buyer’s behalf. A solicitor, on the other hand, can carry out a risk assessment at an early stage, propose additional contractual terms, request clarification of discrepancies in the documentation, or recommend withdrawing from the purchase. That is why at Agnes Inversiones we recommend working with an independent law firm, particularly in the case of overseas clients.
The mere fact that the flat’s owner is registered in the Registro de la Propiedad is not enough.
Before purchasing, you should, first and foremost, check the current status of the property in the relevant registers. A nota simple enables you to identify the owner and reveal, amongst other things, any mortgages, attachments and other rights or encumbrances affecting the property
The next step is to compare the Registro de la Propiedad with the Catastro and the actual condition of the building. Particular attention should be paid to properties where the previous owner carried out extensions or alterations – for example, enclosing a terrace, adding rooms, a swimming pool or an outbuilding.
The property’s planning status is also important. A solicitor should verify the required permits and whether the property may be used for the stated purpose. With regard to documentation concerning use, the following may be relevant – depending on the region, the age of the building and the legal situation – the Licencia de Primera Ocupación, the relevant administrative declaration or another document authorising the property for use.
When buying a flat, the documents relating to the Comunidad de Propietarios (owners’ association) are extremely important.
The seller should provide information regarding the status of any outstanding payments to the owners’ association. The Spanish Ley de Propiedad Horizontal generally requires the presentation, at the time of sale, of a certificate confirming either the existence or absence of any debt owed to the owners’ association, unless the buyer expressly waives this obligation on the seller’s part. Importantly, the property may be liable for certain arrears incurred by the previous owner covering part of the year of purchase and the three preceding years.
If the property is to be used for holiday lettings, the community’s articles of association and resolutions are even more important, as they may contain restrictions on such activities.
Before the sale, you should also check the Impuesto sobre Bienes Inmuebles (IBI) statement – the local property tax – and ensure that the cadastral number matches the documentation.
The Spanish notarial profession states that, when drawing up a deed, the notary verifies, amongst other things, the land registry details and the IBI status.
The seller should also provide the Certificado de Eficiencia Energética. The applicable regulations stipulate that, when selling an existing building or part thereof, a copy of a duly registered energy performance certificate, together with the label, must be attached to the contract of sale.
A legal analysis will not answer the question of whether a leak will appear on the terrace after the first heavy downpour, or whether the air-conditioning system will need replacing.
We therefore recommend an independent technical inspection, particularly when purchasing a property on the secondary market. It is advisable to commission an architect or another specialist with the appropriate expertise to assess the specific building.
The scope of the inspection should depend on the type of property. The process of inspecting a flat in a modern complex is different from that of a villa several decades old with a swimming pool and garden.
A specialist may look for cracks and damp, insulation and waterproofing of terraces and the roof, electrical and plumbing installations, air conditioning, windows and joinery, the condition of the façade and the swimming pool, as well as any visible signs of previous renovations.
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Before buying a property in Spain, it is worth checking its legal, registration, planning and technical status. The check should include, amongst other things, the Registro de la Propiedad, details in the Catastro, any mortgages and other encumbrances, arrears owed to the owners’ association, IBI, and documentation regarding the property’s legal status and use. For properties on the secondary market, it is also worth considering an independent technical inspection.
One of the key documents is the ‘nota simple’ from the Spanish Registro de la Propiedad. It allows you to establish who is listed as the owner of the property, as well as to check basic information about rights and encumbrances disclosed in the register.
A nota simple is a document from the Spanish Land Registry – the Registro de la Propiedad. It contains, amongst other things, details of the property, its owner and any disclosed mortgages, attachments and other rights or restrictions. It is one of the key documents analysed before purchasing a property in Spain. It is important to bear in mind that the nota simple is for information purposes only.
No. The nota simple is a very important document, as it allows you to verify the owner and any currently registered rights and encumbrances, but it is for information purposes only. It does not, on its own, answer questions regarding, amongst other things, the legality of alterations, compliance with the cadastral record, outstanding community fees, the town planning status or the intended use of the property.
Mortgages, seizures and other disclosed encumbrances can be checked at the Registro de la Propiedad. Separately, you should verify, amongst other things, the situation regarding IBI and any arrears owed to the Comunidad de Propietarios, i.e. the owners’ association. Analysing the ‘nota simple’ alone does not, therefore, replace a full property audit.
You should compare the actual condition of the property with the information held in the Registro de la Propiedad, the Catastro and the relevant administrative documentation. Additional rooms, enclosed terraces, swimming pools, outbuildings and other alterations carried out by previous owners may require particular scrutiny.
Yes, particularly if the property is of high value or if several years have passed since the building was completed. With newer properties, the risks tend to relate more to the quality of workmanship, waterproofing, installations or defects that become apparent during use, rather than to the natural wear and tear of the building. A technical inspection prior to finalising the purchase can therefore provide information that is useful both for decision-making and for negotiating the terms of the transaction.
The scope of the audit depends on the type of property and the transaction. It may include, amongst other things, checking the seller’s title to the property, entries in the Registro de la Propiedad, mortgages and attachments, data in the Catastro, town planning status, documentation regarding the property’s use, IBI, obligations to the owners’ association, and contracts presented to the buyer for signature.
A Spanish notary is impartial and performs the duties prescribed by law in relation to the transaction taking place before them. However, they are not the buyer’s personal adviser. An independent solicitor represents their client’s interests and may carry out a property audit in advance, analyse contracts, highlight risks and propose appropriate safeguards for the transaction.
