Buying property in Spain is an exciting opportunity, but it comes with a range of legal obligations that every buyer should understand before committing.
Whether you’re planning to invest in a holiday home, purchase a rental property or relocate permanently, being aware of the legal requirements can help you avoid complications and protect your investment.
Navigating the Spanish legal system can feel complex if you’re unfamiliar with it, but taking the right steps will protect you from common pitfalls and costly mistakes. Here, we outline the key legal considerations to keep in mind when purchasing property in Spain.
Why you need a lawyer when buying property in Spain
The first thing you should do is hire an independent lawyer (abogado) who specialises in Spanish property law. It’s important that your lawyer isn’t connected to the seller or estate agent, so the advice you receive is completely impartial.
A good lawyer will check the contracts, carry out all the necessary legal checks, and guide you through the process step by step. If you can’t be in Spain for every part of the purchase, you can give your lawyer power of attorney, which allows them to sign documents and handle matters on your behalf. This can save you a lot of time and stress.
Residency rules and visas for property buyers in Spain
Your nationality affects how long you can stay in Spain and what paperwork you need. EU citizens can live and work in Spain without a visa, while non-EU citizens, including UK nationals since Brexit, can stay up to 90 days in any 180-day period without one.
If you plan to spend more time in Spain, you’ll need the right visa or residency permit. Check out our guide on securing visas and residency in Spain for more information.
Your residency status also affects your tax obligations, which is something every buyer should consider early on.
Taxes you’re legally responsible for when buying property in Spain
Another important legal consideration is your tax status and liability. When you buy Spanish property, you’ll usually need to pay transfer tax (ITP) on resale properties or VAT (IVA) and stamp duty on new builds.
Once you own the property, there are also ongoing taxes, including local property tax (IBI), wealth tax, and potentially income tax if you rent it out.
Your tax obligations will also depend in part on whether you’re considered a Spanish tax resident. Under Spanish law, anyone living in Spain for more than 183 days in a year is considered a resident for tax purposes and must pay tax on worldwide income. If you’re a non-resident, you only pay tax on Spanish-sourced income.
Taxes can be tricky to navigate, especially if you have ties to more than one country, so it always pays to do your research beforehand. Our article on Spanish property tax is a good place to start, but it may be best to seek professional financial advice.
Checking ownership and title deeds in Spain
Before you sign anything, it’s essential to make sure the seller is the legal owner and has the right to sell the property. Your lawyer will do this through the Spanish Land Registry (Registro de la Propiedad).
This check also ensures the property is free from debts, mortgages or other charges. In Spain, debts are tied to the property itself, not the owner. Without proper checks, you could inherit financial liabilities.
The registry will also confirm the exact boundaries of the property, which is especially important if you’re buying land outside of town.
Local regulations and planning permission in Spain
Spanish property law is closely linked to regional and local rules, which can vary significantly between autonomous communities and even individual municipalities. It’s essential to check that the property complies with the specific regulations where it’s located.
You’ll need to ensure the property is legally classified for residential use and that any renovations have the correct building licences. If previous work was carried out without permission, you could be held responsible for regularising it, which can be costly.
If the property is part of a residential development, you should also review the rules of the homeowners’ association. These may restrict short-term rentals, renovations, or even aspects of day-to-day living such as pet ownership.
The legal process of buying property in Spain
Another key legal consideration is making sure you understand the process of buying property in Spain, including the key steps, your rights, and your obligations.
The process usually begins with a preliminary agreement, which can take different forms depending on the property and the region. You may be asked to sign a reservation contract (contrato de reserva), often used with new builds, which takes the property off the market in exchange for a small deposit. Alternatively, you may enter into a private purchase contract (contrato privado de compraventa), which sets out the price, terms, and timing of the sale. In many cases, this is structured as a deposit contract (contrato de arras), where the standard rule is that if the buyer pulls out, they lose the deposit, and if the seller pulls out, they must return double.
The next step is signing the deed of sale (escritura de compraventa) in front of a notary. At this stage the remaining balance is paid, and ownership legally transfers to the buyer. The notary ensures the deed complies with Spanish law and is valid, though due diligence is normally handled by the buyer’s lawyer.
Finally, the property should be registered at the Land Registry in the buyer’s name. While registration is not strictly required to become the owner, it is highly recommended as it secures your title, makes it legally enforceable, and protects against third-party claims.
Mortgages, payments and legal requirements in Spain
Financing your purchase also comes with legal considerations. If you need a mortgage, Spanish law offers borrower protections, but contracts can still include complex terms. A lawyer should always review the mortgage agreement to confirm it complies with Spanish law and does not contain unfair clauses.
Transferring funds for the purchase also falls under strict legal requirements. Spanish regulations require large payments to go through secure, regulated channels, with documentation to prove the source of funds. Failure to comply can delay completion or create legal and tax issues.
To stay on the right side of the law while also managing exchange rates and transfer security, many international buyers choose a specialist provider such as Currencies Direct. Using a regulated payments company ensures your money is transferred safely and efficiently, and can help you comply with Spanish legal requirements. You can also use a payments platform, such as Redpin, which has built-in compliance features.
Inheritance laws in Spain and why you may need a Spanish will
Thinking ahead to how your property will be passed on is an important part of buying in Spain, especially if you or your heirs live in different countries. Without a clear will in place, international estates can quickly become tangled in cross-border legal procedures, making things far more complicated and stressful for your family. A will that specifically covers your Spanish assets can help avoid these difficulties and provide certainty for your heirs.
Once you start looking at the Spanish system in particular, it’s essential to understand that inheritance law here is different from what many foreign buyers are used to. Spain follows a system of forced heirship, which means certain relatives – typically children, and in some cases a spouse – are legally entitled to part of your estate. This can restrict how freely you pass on your property if Spanish law applies by default.
However, EU succession rules give foreign nationals the option to choose that their own national law should apply instead. By making this choice explicitly in a Spanish will, you can often avoid the limitations of forced heirship and make sure your estate is handled according to the laws you are familiar with.
Combined with the practical benefits of simplifying paperwork and reducing the risk of disputes, this is why most international buyers are advised to prepare a Spanish will as part of their estate planning.
Final thoughts on legal considerations when buying in Spain
Buying property in Spain can be a rewarding and straightforward experience if you take the right legal steps from the start. By working with an independent lawyer, keeping on top of your residency and tax status, checking ownership and planning rules, and making sensible inheritance plans, you can avoid costly mistakes and protect your investment.
Handling the financial side is just as important. Spanish regulations require property payments to be made through secure, regulated channels with the right documentation in place. Choosing a specialist provider such as Currencies Direct means your transfers are carried out safely and efficiently, with expert support to help you meet the requirements involved in moving large sums internationally.
With our Redpin Payments platform, you also benefit from a fully digital service that removes the hassle of bank visits and delays. Same-day settlements, secure communication, and real-time tracking make the final stage of your property purchase faster, safer, and more transparent.
If you’d like to know more, our team is here to help. Get in touch or create an account online in minutes.
You can also check out our ultimate guide to buying property in Spain for a detailed overview of everything you need to know.
