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t Here are general guidelines on aspects of Real Estate.
It is important to ask for professional advice in order to avoid misunderstandings and possible frauds, at the same time, you will avoid the worry of all the procedures and paperwork
 Buying a property in Spain
The Lawyer
The Public Notary
The NIE number
Taxes Payment
Purchasing a second hand property
Getting a mortgage
Selling your Spanish property
Renting and letting in Spain
The community of property owners
Certificate from Property Registry
Buying a Property in Spain:
Buying a property is a complex decision to take. To buy it in a foreign country even makes the decision more important and complicated and there are a lot of different factors and pitfalls that you need to take into consideration. The first thing a foreigner buyer should know is not only that the property system in Spain is different to that of his own country, but also the procedure and the professional involvement differs in a noteworthy manner. That is the reason why it is necessary the assistance of a Spanish Lawyer.
The Lawyer:
For the purchase of a property in Spain the intervention of a lawyer is not mandatory but highly advisable. The role of a Spanish Lawyer is different to that of a common-law country solicitor. A Spanish lawyer may act both as a barrister and a solicitor, but on the other hand although he may draft all type of private contracts these contracts have no entry into the Property Register. Those private contracts are binding agreements between the parties but not enforceable before third persons who may have a better or registered right. Buying a property in Spain usually starts with a private contract and therefore this should be drafted very carefully for a professional like a lawyer.
The intervention of Spanish lawyer is not only necessary for the drafting of the private contract. He also should be instructed for the Due Diligence: Checking the necessary licenses, checking the position of second hand properties in connection with the property Tax –local rates- and others, possible existence of debts to the community of owners, existence of charges and encumbrances on the property etc..
It is also convenient to check that the lawyer to be instructed is covered by a Professional Indemnity Insurance.
The Public Notary:
Public Notaries are professionals of high professional and moral standards typical of most Latin countries. Although they exist also in common law jurisdictions by no means they have there the role they play in Latin countries especially in Spain. They are absolutely independent from the parties involved in a transaction. A Deed granted before a Public Notary is the only document that may be registered at the Register of Property. You can buy a property without a lawyer’s assistance but you cannot buy without Public Notary intervention if you want your property to be dully registered.
The NIE number:
Before you can grant the Public Deed a foreigner non resident must apply for and identification number at police station. This number will be requested to pay taxes and also by the notary. This is a quite rambling process. Queuing for a long time is nearly sure in almost all police stations of medium-big cities. To get it in the Spanish general Consulate in your country might be an easier way.
Payment of Taxes:
The payment of the transfer tax should be made within one month of the signature of the public Deed to avoid penalties. If you are buying a new house you will have to pay VAT to the seller. No Transfer Tax shall be required, although you will have to pay the stamp duty for the deed. VAT a new house is 7%. The duty stamp is 1%. The Transfer Tax in case you buy a second hand house is 7%.
Purchasing a second hand property:
When buying a second hand house there are a lot of previous steps that need to be taken:
- Ask for a Simple Note at the Property Registry.
- Check that the property is free of charges.
- Check that the property is not subject to mortgages, and if it is, you will need to check that the payments are updated.
- Check that the Municipal Real Estate Tax (IBI) is already paid.
Getting a Mortgage
A Mortgage is a type of loan used to finance the purchase of a property when the buyer has not got the total amount of the price of the house. When asking for a mortgage you will need some help to understand all the proceedings:
- What is necessary for a mortgage to have full legal effect.
- Novation and Subrogation (when the property is already mortgaged).
- Mortgage interest Rates (fixed/variable)
- Costs and legal fees (Valuation, Request of extract, bank mortgage opening fee, stamp duty, Notary and Registry, Insurance, etc).
Selling your Spanish property
It is strongly recommended to seek legal assistance if you intend to sell your property located in Spain, whether you are resident or not, complications may arise if you intend to sell your house for yourself.
VAHUSARI Advocats can help you sell your property by offering:
- Professional unbiased advice about pricing the property
- Presenting the property to the best estate agents available
- Marketing advice about selling the property without an agent
- Prepare legal matters and paperwork needed to complete the sale including private contract stating terms & condition of the sale, assistance at the notary, payment of capital gain tax.
Renting and letting in Spain
When renting a house in Spain having a lawyer is not necessary but is highly advisable; he can be very helpful checking that every thing is correctly done and also to do all the paperwork: the Contract, the Deposit, the Rent, Community Fees, Real Estate Tax (IBI), the inventory of the property contents, the repairs in the house, etc.
The Community of Property Owners
If you have bought an apartment or villa, which take part of a building complex, you need to know that these will be subject to the Spanish Law of Horizontal Division (Ley de Propiedad Horizontal). According to this law, every apartment or villa-owner has the co-property of the common elements of the building complex (stairs, lifts, façades, swimming pool, cleaning services, drains, supply of water, electric wires etc…), together with the rest of owners of the block and must participate in the expenses of the community on a pro-rata basis.
Certificate from Property Registry
This a document needed by the buyer of a property to verify that this property is free of charges or is otherwise subject to mortgages, restrictions on use, court orders for seizure … or similar and to verify that the property is owned by the seller. It is usually a lawyer who verifies the books at the registry and obtains this information.
This actualized Certificate of the property will be used later by the lawyer/notary to prepare the Public Deed.
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Matrimonial Law 
