Buying property in Spain, especially if you're a foreign buyer, can be complicated due to the complexity of the legal system, bureaucracy, and cultural differences. A property lawyer in Spain guarantees that the purchase process is legal and secure, protecting you from common risks.
Risks in Property Purchase in Spain
The real estate market in Spain involves certain risks, such as:
- Hidden debts: Properties that have undisclosed financial liabilities.
- Registry charges: Legal issues from previous transactions recorded on the property.
- Non-compliant constructions: Properties that do not meet construction regulations.
- Sellers with limited powers: Sellers without the legal capacity to transfer ownership.
A property lawyer carries out due diligence to thoroughly investigate the property and prevent these risks.
Notary vs. Property Lawyer: What's the Difference?
It's essential to understand the differences between a notary and a property lawyer. While both play an important role, their functions differ:
- The Notary: A public official who validates the identity and ensures the legality of the contract. Their role is neutral and does not protect your interests.
- The Property Lawyer: Unlike the notary, the lawyer works exclusively for you. Their role is to review contracts, negotiate clauses, and ensure everything complies with the law to protect your interests throughout the process.
What Does a Property Lawyer Do in Spain?
A property lawyer specialising in real estate law is involved not only at the end of the process but also from the start: they review property documents, check contracts, manage tax matters, and, if necessary, sign on your behalf.
Their role is to ensure the operation complies with the law, preventing unnecessary risks. This is especially important if you're unfamiliar with the language, urban regulations, or common practices in the Spanish real estate sector.
Legal Review (Due Diligence)
The lawyer accesses the Property Registry to confirm the seller is the real owner, that there are no mortgages or liens, and that all payments (IBI or council tax, community fees, utilities) are up to date. They also review urban planning permits, licenses, and energy certifications, essential when buying new or recently renovated properties.
Review and Negotiation of Contracts
From the reservation contract and the arras contract to the final deed, the lawyer checks each point: deadlines, deposits, penalties, suspensive conditions (financing, technical reports). A detailed analysis can prevent abusive clauses and save you thousands of euros.
Tax Advice and NIE Management
The lawyer advises on key taxes: ITP (Transfer tax on property) (6-10%), VAT (10% on new builds), and municipal capital gains tax. If you don't yet have your NIE, the lawyer handles this process, as it’s essential for signing, obtaining financing, and managing utilities.
Power of Attorney and Legal Representation
Can't travel to Spain? The lawyer drafts a power of attorney allowing them to sign on your behalf, attend notary appointments, pay taxes, and register the property. This prevents travel and ensures the entire process can be completed from abroad.
How to Choose the Right Lawyer for Property Purchase in Spain
Choosing the right property lawyer is crucial to ensuring a safe purchase. Here are some key recommendations:
- Specialisation in Real Estate Law: Ensure they have experience with property transactions, especially with international clients.
- Knowledge of the Local Market: A local lawyer will better guide you through the procedures and costs of the area.
- Languages: If you don’t speak Spanish, look for a lawyer who offers services in your language to avoid misunderstandings.
According to the National Institute of Statistics (INE), Spain's real estate market is experiencing growing demand, particularly in areas like Madrid and Barcelona, where the legality of transactions and bureaucratic details are key to avoiding issues when purchasing properties.
How Much Does a Property Lawyer Cost in Spain?
Hiring a lawyer for property purchase does incur a cost, but it is also an investment in security and peace of mind. Fees depend on the type of service, location, and property value, but it’s important to clarify payment methods and what is included.
Fixed fees are sometimes offered, while other lawyers apply a percentage of the property’s price.
Common Lawyer Fees
Generally, lawyers charge between 1% and 1.5% of the purchase price, with a minimum of between €1,000 and €1,500. For example, on a property costing €250,000, this would represent between €2,500 and €3,750, plus VAT of 21%.
Fixed Fees vs Percentage Based on Property Value
Fixed fees usually range between €800 and €1,500, offering clarity and security, ideal for standard transactions and mid-priced homes.
In more complex cases or high-value properties, the percentage model can rise to as much as 3% of the property value, due to the higher responsibility and workload of the lawyer.
Choosing between a fixed fee or percentage depends on the property type and the complexity of the purchase. It’s important to discuss the most convenient option with the lawyer.
Conclusion: Why You Need a Property Lawyer in Spain
Hiring a property lawyer is a key investment in ensuring the security of your property purchase. They protect you from legal risks, advise you throughout the process, and ensure compliance with Spanish regulations. While it involves a cost, the long-term benefits are well worth it.
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More articles by Dylan Leworthy
- If you're interested in learning more about the mortgage market, check out more articles by Dylan Leworthy, Regional Director at UCI.
