A fool and his money are easily parted and most seem to come to Spain. It would be impossible to overstate the importance of appointing a qualified Spanish lawyer to look after your interests when buying a property in Spain. When choosing a lawyer, make sure that he or she fluently speaks and writes a language you fully understand. There is no room for mistakes or misunderstandings, so don't hesitate to ask questions.


Spanish property law is complex and unwary investors are often misled by unscrupulous sellers. There is only one person who is entitled to sell you the property and that is the person who is named on the title deed. No matter how tempting the price might be and the more tempting, the closer you should look, never sign anything without the agreement of your qualified, Spanish-speaking lawyer.

The role of your Spanish lawyer

As well as giving legal advice and guidance at each stage of the buying process, your Spanish lawyer will check the property registry to ensure there are no encumbrances or debts registered against the property. Should your lawyer discover anything untoward they will advise you on how best to proceed, or whether you should proceed at all. On completion, your lawyer will lodge the title deed with the land registry and then take care of any remaining formalities such as opening accounts with local utility companies in your name and the payment of any transfer taxes.

Spanish Notario

The Spanish Notario is very different from a lawyer or solicitor. He or she is a publicly appointed government official. It is not their responsibility to carry out the important pre-contract enquiries normally performed by a solicitor. Spanish estate agents may try to persuade you that you have no need for a lawyer and that the Notario will carry out all the necessary work. This is not true and don't be persuaded by the idea of saving money. You must appoint your own Spanish lawyer. Only a fool would purchase a property in their own country without instructing their own legally qualified representative. It is even more important to do exactly the same in Spain, where the problems facing the unwitting purchaser are even greater.


Make sure your lawyer has a sound knowledge of both Spanish and British taxation and inheritance law, as well as Spanish property law. There are Notarios in Spain who speak English fluently and have a basic knowledge of English and American laws and procedures. Step carefully where Scottish, Northern Ireland or Irish law is concerned as few will have had experience in these areas. There are a limited number of British lawyers who have chosen to specialise in this legal area of expertise. Some Spanish lawyers who have moved to the UK, are also qualified in both UK and Spanish law and represent clients purchasing property in Spain.

Tax considerations and other costs for property in Spain

Allow about 10% to 11% over and above your purchase price to cover any tax liabilities and miscellaneous costs. This figure will cover the Spanish equivalent of VAT, known as IVA, which is currently calculated at 6% of the value of a resale property or 7% of the value of a new build property. It also covers stamp duty, which is currently 0.5%; a small charge that has to be paid to the property registration office; a fee for obtaining copies of the 'escritura publica'; connections to local utilities and legal fees.


You should also note that, as the buyer, you could be required to pay the seller's fees, although this is a point for negotiation and not set in concrete.

If you are buying a Spanish property from someone who is not officially a Spanish resident you will also be required to lodge a deposit equal to 5% of the sale price with the 'Hacienda', the local tax office. This legal system was introduced in 1997 to offset the risk of the seller leaving Spain without settling his or her bill for capital gains tax, other taxes and ensures that the vendor will not recieve the proceeds of the sale until he or she has discharged his or her financial liabilities.

The importance of understanding capital gains tax on Spanish property

Capital gains tax, or 'plus valia' must be paid when any property is sold. It is calculated at 35% of the difference between the present value of the land and it's value when last sold. Spanish law does not specify who is liable for this tax. It is therefore extremely important to have this included in your negotiations and to have the agreement documented by a lawyer. The consequences otherwise could prove costly.