The Ultimate Legal Guide for British Expats (Murcia, Alicante, Valencia & Almería)
Dreaming of a Spanish property? Whether it’s a sun-soaked villa in Murcia, a vibrant apartment in Alicante, a historic home in Valencia, or a coastal escape in Almería, buying property in Spain is achievable. However, understanding Spanish property law is crucial for a smooth and secure purchase.
This guide, from the experts at ABAD Abogados – your Spanish property lawyers – provides the essential legal insights for British expats buying in Murcia, Alicante, Valencia, and Almería.
Why ABAD Abogados? Your Spanish Property Law Experts
With offices in Murcia, Alicante, Valencia, and Almería, ABAD Abogados has unparalleled local knowledge of the Spanish property market. We don’t just understand the law; we understand the nuances of each region, ensuring your purchase is legally sound and tailored to your specific needs.
Table of Contents
The Spanish Property Buying Process: A Step-by-Step Guide
Step 1: Your Spanish Tax ID
In Spain, all individuals, legal entities, and unincorporated entities, regardless of whether they are Spanish or foreign, must possess a Tax Identification Number (NIF) for any activities or dealings with tax implications.
Who is required to have a NIE?
A Foreigner Identification Number (NIE) is necessary for any non-Spanish national (with limited exceptions, such as diplomats) who meets one of the following criteria:
- They are obtaining a TIE (Foreigner Identity Card) or another document that permits residency in Spain.
- They are a citizen of the EU or European Economic Area (EEA) intending to stay in Spain for longer than three months.
- They have economic, professional, or social interests connecting them to Spain, regardless of residency status.
Once obtained and registered with the Spanish Tax Agency (Agencia Tributaria), this NIE number serves as the individual’s Tax Identification Number (NIF) in Spain.
Step 2: Spanish Bank Account – Simplifying Transactions
A Spanish bank account is highly recommended for easy payment of the purchase price, taxes, and ongoing expenses. If it is not possible, check with your solicitor how to use their client account.
Step 3: Property Search & Initial Checks
Work with estate agents or search independently. Conduct thorough viewings and gather preliminary property information.
Step 4: Reservation Agreement (Contrato de Reserva)
A preliminary contract where you pay a small deposit to take the property off the market. This allows time for due diligence.
Step 5: Due Diligence – Your Legal Protection
This crucial stage is where the expertise of your Spanish property lawyer—whether based in Murcia, Alicante, Valencia, Almería, or elsewhere in Spain—becomes absolutely essential. Due diligence is the process of thoroughly investigating the legal and financial status of the property before you commit to selling. This protects you from potential legal issues, financial liabilities, and a disrupted sale down the line.
Your solicitor will handle these checks on your behalf, providing you with peace of mind and a clear path forward.
Here’s a breakdown of the key due diligence checks:
- Comprehensive Land Registry Verification (Nota Simple):
- What it is: Your solicitor will obtain a Nota Simple (an official extract from the Land Registry – Registro de la Propiedad). This document is the single most important source of truth about the property’s legal status.
- What it reveals:
- Confirmed Legal Ownership: Verifies that you are the registered legal owner and have the right to sell.
- Property Description: Confirms the property’s details (size, boundaries, features, update on the existing building works) as officially recorded.
- Existing Charges and Encumbrances: Crucially, it identifies any registered mortgages, liens, embargoes (seizures), rights of way, or other limitations on the property, like we will explain you afterwards. This is essential to know before you proceed with a sale.
- Beneficial Ownership: Checking who is listed as a beneficial owner.
- Why it’s vital: Any undisclosed charges could become the buyer’s responsibility, leading to legal disputes or a collapsed sale. The Nota Simple provides transparency and legal certainty.
- Debt and Liability Investigation:
- What it covers: Your solicitor will meticulously check for any outstanding debts associated with the property, including:
- IBI (Impuesto sobre Bienes Inmuebles): Annual property tax. Unpaid IBI can lead to charges on the property.
- Community Fees: If the property is part of a community of owners (common in apartments and urbanizations), outstanding fees must be cleared. The solicitor will obtain a certificate from the community administrator confirming this.
- Utility Bills: While technically personal debts, unpaid utility bills (electricity, water, gas) can cause issues for the new owner. Your solicitor will advise on settling these.
- Other Potential Debts: Your solicitor will investigate any other potential liabilities specific to the property or region.
- Why it’s vital: Unpaid debts can transfer to the buyer, creating legal complications and potentially jeopardizing the sale. Full disclosure and clearance of debts are essential.
- What it covers: Your solicitor will meticulously check for any outstanding debts associated with the property, including:
- Planning Permission and Legality Checks:
- What it involves: Your solicitor will verify that the property complies with all relevant planning permissions and building regulations. This is particularly important if any extensions, renovations, or modifications have been made.
- Checks include:
- Licences: Confirming that all necessary building licenses and permits were obtained for the original construction and any subsequent work.
- Habitation Certificate (Cédula de Habitabilidad / Licencia de Primera Ocupación or Segunda Ocupación): Ensuring the property has the required certificate of occupancy, which is vital for legal occupation and utility connections (especially important in regions like Valencia and Murcia).
- Cadastral Records: Comparing the property’s description in the Land Registry and the Cadastre (the tax registry) to ensure consistency and identify any discrepancies.
- Coastal Law Compliance (if applicable) properties that are close to the coast are subject to additional checks.
- Military authorization for the purchase of real estate by non-EU foreigners: Citizens or companies from countries outside the European Union (non-EU) are required, in certain circumstances, to obtain authorization from the Ministry of Defence before purchasing real estate in specific areas of the country. This authorization is required when the property is located near military facilities, national security zones, or areas with strategic significance.
- Right of first refusal (derecho de tanteo) and Right of repurchase (derecho de retracto): Applicable in somce cases when there are tennats in the property and by the Regional Government in regions like Valencia and Alicante, in order to maintain it as public housing or ensure it is available to those with economic difficulties, preventing speculation and protect access to housing in critical areas.
- Why it’s vital: Unlicensed construction or non-compliance with regulations can lead to fines, legal disputes, and even demolition orders. Ensuring the property’s legal status is sound protects both you and the buyer.
- Urban Planning Checks
- Your solicitor will also check with the local Town Hall to find out the urban planning status of your property. They will check the local urban plan, to ensure everything is in order.
By conducting this thorough due diligence, your Spanish property lawyer safeguards your interests, ensuring a legally sound and transparent sale process. This minimizes risks and maximizes your chances of a successful and stress-free transaction.
Step 6: The Private Purchase Contract (Contrato de Arras) – Securing the Deal
Once you’ve found a buyer and agreed on a price, the next crucial step is signing a private purchase contract, known in Spain as the Contrato de Arras. This is a legally binding agreement that sets out the key terms of the sale and, crucially, secures the deal with a deposit. It’s far more than just a formality; it’s a critical document that protects both the buyer and the seller.
Your Spanish solicitor will be instrumental in drafting or reviewing this contract to ensure your interests are fully protected.
Understanding the Deposit and its Significance:
The Contrato de Arras always involves the payment of a deposit (arras) by the buyer to the seller. This deposit serves two main purposes:
- Demonstrates Serious Intent: It shows the buyer’s genuine commitment to purchasing the property.
- Provides Security: It offers the seller security, knowing that the buyer is financially invested in completing the transaction.
The deposit amount is typically 10% of the agreed purchase price, but this can be negotiated. The specific terms and conditions surrounding the deposit, particularly what happens if either party withdraws from the sale, are defined by the type of Arras agreement used.
The Three Types of Arras Contracts – Choosing the Right One:
Spanish law recognizes three main types of Arras contracts, each with different implications for both buyer and seller:
- Arras Penitenciales (Penitential Deposit):
- Allows Withdrawal with Defined Penalties: This is the most common type of Arras contract used in Spanish property transactions. It allows either party (buyer or seller) to withdraw from the sale, but with pre-agreed financial consequences.
- Buyer Withdraws: If the buyer backs out, they forfeit the deposit they paid.
- Seller Withdraws: If the seller backs out, they must return double the deposit to the buyer. This provides a strong incentive for both parties to proceed with the sale.
- Legal Basis: This type of Arras is explicitly regulated by Article 1454 of the Spanish Civil Code.
- Arras Confirmatorias (Confirmatory Deposit):
- Strong Commitment to Complete: This type of Arras signifies a firm commitment to complete the sale. It doesn’t explicitly allow for withdrawal with a pre-defined penalty like Arras Penitenciales.
- Breach of Contract: If either party breaches the contract, the other party can take legal action to either:
- Force Completion: Seek a court order compelling the other party to complete the sale.
- Claim Damages: Sue for compensation for any losses incurred due to the breach. This could include legal costs, lost profits, and other expenses.
- Less Common: This type is less frequently used in residential property sales because it’s more rigid and can lead to lengthy legal battles.
- Arras Penales (Penal Deposit):
- Pre-Agreed Penalty for Breach: This type of Arras is similar to Arras Confirmatorias in that it represents a strong commitment to the sale. However, it specifies a fixed penalty for breach of contract.
- Penalty Clause: The contract will clearly state the amount of compensation payable by the breaching party. This penalty may or may not be the deposit amount itself.
- Legal Action Still Possible: While the penalty clause provides a pre-agreed compensation, the non-breaching party may still be able to pursue further legal action if their actual damages exceed the penalty amount.
- Less Common: This type is also less common in standard residential sales.
Key Elements of the Contrato de Arras:
Regardless of the type of Arras chosen, the contract will typically include:
- Identification of the Parties: Full legal names, NIE/DNI numbers, and addresses of both the buyer and seller.
- Property Description: A detailed description of the property, including its address, cadastral reference, and any relevant features.
- Agreed Purchase Price: The final agreed-upon price for the property.
- Deposit Amount: The amount of the arras deposit paid by the buyer.
- Type of Arras: Clearly states whether it’s Arras Penitenciales, Confirmatorias, or Penales.
- Completion Deadline: The date by which the final deed of sale (Escritura de Compraventa) must be signed at the notary.
- Distribution of Expenses: Specifies who is responsible for various costs associated with the sale (e.g., notary fees, property registration fees, taxes).
- Other Clauses: May include clauses related to fixtures and fittings, inventory, vacant possession, and other specific conditions.
Your Solicitor’s Role:
Your Spanish property solicitor will:
- Advise on the Best Type of Arras: Explain the implications of each type of Arras and recommend the most suitable option for your circumstances.
- Draft or Review the Contract: Ensure the contract is legally sound, accurately reflects the agreed terms, and protects your interests.
- Negotiate Terms: Negotiate with the buyer’s solicitor to reach a mutually agreeable contract.
- Ensure Compliance: Ensure the contract complies with all relevant Spanish laws and regulations.
The Contrato de Arras is a crucial step in securing your property sale. Don’t underestimate its importance. Expert legal guidance is essential to ensure a smooth and legally sound transaction.
Step 7: Securing a Spanish Mortgage (If Needed)
Explore mortgage options with Spanish or international banks. Non-resident requirements may differ. At ABAD Abogados, we can assist with securing a mortgage from a reputable bank.
Step 8: Signing the Title Deed (Escritura de Compraventa) at the Notary – The Final Step
This is the culmination of the selling process: the formal signing of the Title Deed, known in Spain as the Escritura de Compraventa, before a Notary Public. This act legally transfers ownership of the property from the seller to the buyer.
While it may seem like a simple signing ceremony, it’s a critical legal procedure with specific requirements, and the presence and oversight of your Spanish property lawyer are absolutely vital, either in person or through thorough prior review.
The Role of the Spanish Notary:
The Notary in Spain plays a significantly different role than a Notary Public in the UK or other common law countries. The Spanish Notary is a highly qualified public official who:
- Ensures Legality: The Notary’s primary responsibility is to ensure the legality of the transaction and that all legal requirements are met. They act as an impartial guarantor of the process.
- Verifies Identities: The Notary confirms the identities of the buyer and seller, ensuring they are who they claim to be and have the legal capacity to enter into the contract.
- Confirms Understanding: The Notary ensures that both parties understand the terms of the Escritura and are signing it voluntarily. They will often read the document aloud (or a summary of it) in Spanish.
- Witnesses the Signing: The Notary officially witnesses the signing of the Escritura by both parties.
- Provides Legal Certainty: The Notary’s presence and signature provide legal certainty to the transaction. The Escritura becomes a public document, registered in the Land Registry.
- Checks that funds are paid. Checks the method of payment.
- Retains Taxes. Makes the 3% retention on account of capital gains, if applicable.
- Informs the Land Registry: Notifies the registry of the sale.
Why Your Solicitor’s Involvement is Crucial:
- Presence at the Notary: Ideally, your solicitor will be present at the Notary appointment alongside you. This allows them to:
- Provide Real-Time Advice: Answer any last-minute questions you may have and clarify any points raised by the Notary.
- Ensure Accuracy: Double-check that all details in the Escritura are correct and consistent with the agreed terms.
- Protect Your Interests: Immediately address any issues or discrepancies that may arise during the signing.
- Facilitate Communication: Translate and explain any complex legal terminology, especially if you’re not fluent in Spanish.
- Witness Funds Paid: Ensure the payment is as agreed.
- Prior Review of the Escritura: If your solicitor cannot be physically present, they must thoroughly review the draft Escritura before the signing appointment. This involves:
- Detailed Examination: Scrutinizing every clause and detail to ensure it aligns with the agreed terms and protects your interests.
- Identifying Potential Issues: Flagging any potential problems, ambiguities, or unfavorable clauses.
- Requesting Amendments: Negotiating any necessary changes with the buyer’s solicitor or the Notary before the signing.
- Providing Clear Instructions: Giving you clear instructions and explanations of what to expect at the Notary.
What Happens at the Notary Appointment:
- Introductions and Identification: The Notary will introduce themselves and verify the identities of all parties involved (buyer, seller, solicitors, and any representatives with Power of Attorney).
- Reading of the Escritura: The Notary will read aloud the Escritura (or a summary) in Spanish. If you don’t understand Spanish, your solicitor will provide translation.
- Confirmation of Terms: The Notary will ask both parties to confirm that they understand and agree to the terms of the contract.
- Payment of the Balance: The buyer will pay the remaining balance of the purchase price to the seller, usually by banker’s draft. The Notary will witness this exchange. Your solicitor can advise how best for you to receive payment.
- Signing the Escritura: Both the buyer and seller (or their representatives with Power of Attorney) will sign the Escritura.
- Notary’s Signature and Seal: The Notary will sign and seal the Escritura, making it a legally binding public document.
- Copies: You will receive a copia simple (a simple copy) of the Escritura immediately. The original Escritura will be sent to the Land Registry for registration.
After the Notary:
Even after the signing, your solicitor’s work continues:
- Land Registry Registration: Your solicitor will typically handle the registration of the Escritura at the Land Registry. This is essential to officially transfer ownership and protect the buyer’s title.
- Tax Payments: Your solicitor will calculate and arrange for the payment of any remaining taxes, such as the Plusvalía Municipal Tax.
- Final Closure: Your solicitor will ensure all final steps are completed, providing you with full legal closure on the sale.
The signing of the Escritura is the pivotal moment in selling your Spanish property. Having your Spanish property lawyer involved, either in person or through prior review, is not just recommended – it’s essential for a secure and legally compliant transaction.
Step 9: Post-Purchase: Registration & Taxes
- Property Registration: Register the Escritura at the Land Registry.
- Tax Payment: Pay transfer tax (ITP) for resale properties or VAT/AJD for new builds.
- Utilities & IBI: Set up utilities and arrange payment of the annual property tax (IBI).
Regional Property Law: Murcia, Alicante, Valencia, Almería
Spanish Property Purchase Taxes: What to Expect
- Resale Properties (Transfer Tax): Impuesto sobre Transmisiones Patrimoniales (ITP) – varies by region.
- New Build Properties: VAT (IVA) at 10% in the whoel country + Stamp Duty (AJD) – which varies by region. Keyword: “Spanish Property Taxes”
Please, note that when buying a property, Transfer Tax and Stamp Duty Tax are mutually exclusive.
While Spanish law provides a national framework, regional variations exist. This is why local expertise is crucial.
- Murcia:
– Transfer Tax (ITP): 8%
– Stamp Duty Tax (AJD): 2%
– VAT (IVA): 10%
- Alicante and Valencia (Valencian Community):
– Transfer Tax (ITP): 10%
– Stamp Duty Tax (AJD): 1.5%
– VAT (IVA): 10%
- Almería (Andalusia):
– Transfer Tax (ITP): 7%
– Stamp Duty Tax (AJD): 1.2%
– VAT (IVA): 10%
Consult ABAD Abogados for the most up-to-date regional regulations.
Buying Off-Plan Property in Spain: Risks & Safeguards
Buying off-plan can offer advantages, but requires extra caution:
- Bank Guarantees: Essential to protect your payments if the project fails.
- Contract Review: Your lawyer must thoroughly review the contract.
- Stage Payments: Linked to construction milestones.
- Licences & Permits: Verify the developer’s credentials.
Community of Owners: Key Considerations
If buying an apartment or property within a development, you’ll be part of a Community of Owners:
- Community Fees: Regular payments for communal area maintenance.
- Community Rules: Regulations governing property and communal area use.
- Meetings: Owners’ meetings for decision-making.
- Debt Checks: Ensure no outstanding community debts.
Clearing Property Debts & Bills: Essential Checks
Before completion, your lawyer will ensure all utility bills, local taxes (IBI), and community fees are paid. This protects you from inheriting debts.
Property Surveys in Spain: A Wise Precaution?
Squatting is a potential issue in some areas. Your lawyer can advise on preventative measures (Alarm, Insurance, registration of your property in the Town Hall, Keyholding…)
Conclusion: Secure Your Spanish Property with Legal Expertise
Buying property in Spain is a significant investment. ABAD Abogados provides the expert legal guidance you need for a smooth and secure purchase in Murcia, Alicante, Valencia, or Almería.
About Mr Isaac Abad Garrido
Mr Isaac Abad Garrido is the Senior Partner at ABAD & ASOCIADOS Lawyers & Accountants, with over 25 years of experience specialising in Real Estate Law, Tax Law, Corporate Law, Bankruptcy Law, Business Restructuring, and Community Administration.
He has been consistently recognised among The Best Lawyers in Spain™ from 2020 to 2025 for excellence in Tax Law, and in 2022, he was named “Lawyer of the Year” in Tax Law (Murcia, Spain).
A member of the International Bar Association, he is also an Associate Partner of the Spanish Royal Academy of Jurisprudence and Law. Additionally, he serves as a Professor at the University of Murcia, teaching Tax Law, and is a regular contributor to leading international tax law publications, including Newsweek.
Mr Abad Garrido holds degrees in Law, Business Administration, and Accounting, complemented by postgraduate studies at IE Business School. He is a Certified Auditor registered with the Official Registry of Auditors (ROAC).
For legal enquiries, visit abadabogados.com or connect with Mr Abad Garrido on LinkedIn.
