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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.

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.

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:

While the Notary ensures the general legality of the process, your solicitor represents your specific interests. There are two main ways your solicitor can be involved:

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.

Everything You Need to Know About the Legal Process of Selling a House in Spain

For years, your Spanish property has been your Mediterranean paradise. But life evolves, and perhaps now you’re considering selling your Spanish home. Whether it’s a charming villa in Alicante, a coastal apartment in Almería, or a Murcian townhouse, selling property in Spain as a British expat can feel like navigating a maze. While the dream of Spanish sunshine is simple, the legal and tax landscape of selling your Spanish property is anything but.

Don’t navigate this alone. This comprehensive guide, specifically for British expats, will illuminate the key steps and potential pitfalls of selling your Spanish property. Crucially, we’ll highlight why engaging a Spanish property solicitor isn’t just recommended – it’s essential for a stress-free and financially sound sale.

Why is Selling Property in Spain Complex for British Expats?

Brexit has added layers of complexity. As UK citizens, you are now considered ‘non-EU residents’ for Spanish tax purposes. This impacts capital gains tax, withholding requirements, and the overall process.

Navigating Spanish civil law, regional variations, and tax obligations requires specialist knowledge. Trying to DIY this from the UK can lead to costly errors and legal headaches.

The Essential Steps to Selling Your Spanish Property (Simplified)

Let’s break down the selling process into manageable steps, always keeping in mind the vital role of your solicitor:

Engage a Spanish Solicitor (Right from the Start!)

This is step zero, not step one. Seriously. A qualified, independent Spanish solicitor specialising in property law is your most valuable asset. They will:

Provide Impartial Legal Advice: Represent your best interests, not the buyer’s or estate agent’s.
Navigate Spanish Law & Regional Variations: Ensure full compliance with national and regional regulations (Murcia, Alicante, Almería – we’ll look into regional differences later).
Tax Optimisation: Crucially, minimise your tax liabilities, particularly Capital Gains Tax and Plusvalía.
Due Diligence on You: Ensure your property is legally sound and saleable, addressing any potential issues upfront.
Power of Attorney (If Necessary): Essential if you’re selling from the UK and can’t be present for every step. (INLINK TO SECTION)
Smooth the Process: Handle paperwork, notary appointments, and communication in Spanish, removing language and bureaucratic barriers.
Protect You from Surprises: Uncover hidden debts, legal issues, or encumbrances that could derail the sale.

“As a British National living in Spain, I have found this company [ABAD Abogados] to be the most approachable and professional of any I have dealt with in Spain or the UK. They have an extremely profound knowledge and understanding of the law in Spain as it relates to real estate.” – Steven Waite, Google Review

Due Diligence and Property Preparation

Your solicitor will guide you on this, ensuring you have all your ducks in a row:

Verify Property Title: Confirm your legal ownership and right to sell via the Land Registry (“Registro de la Propiedad”).
Check for Debts & Encumbrances: Uncover any mortgages, liens, or debts associated with the property that need addressing.
Gather Essential Documents: Your solicitor will help you compile the necessary paperwork (we’ll list these shortly).
Energy Performance Certificate (EPC): Legally mandatory – obtain this energy efficiency rating certificate.
Habitation Certificate (Cédula de Habitabilidad/Licencia de Ocupación): Crucial in regions like Alicante and Murcia. Ensure yours is valid.

Marketing and Finding a Buyer

While you can use real estate agents and online portals (like Idealista), remember your solicitor’s role:

Review Agency Contracts: Ensure fair terms and protect your interests.
Advice on Pricing: Considering market conditions and cadastral value (more on this later).

Sales Contracts and Completion

This is where legal expertise is paramount:

Private Purchase Contract (Contrato de Arras): Your solicitor will draft or review this preliminary contract, ensuring deposit terms and conditions are watertight.
Deed of Sale (Escritura de Compraventa): Your solicitor will prepare and oversee the signing of this legally binding contract at the Notary, ensuring everything is compliant and in your favour. They can also act on your behalf with a Power of Attorney if you can’t be there.

Post-Completion Procedures

Even after the sale, there are crucial steps:

Registering the Sale: Ensure the Deed of Sale is registered at the Land Registry for official ownership transfer (your solicitor typically handles this).
Tax Obligations: Your solicitor will manage Capital Gains Tax and Plusvalía Municipal Tax calculations and payments, ensuring compliance and minimising your liability.
Notifying Community of Owners: Inform the community about the sale (if applicable).

The Tax Minefield: Capital Gains and Plusvalía – Solicitor to the Rescue!

Tax is arguably the most complex aspect for British expats selling in Spain. Ignoring these obligations can lead to significant penalties.

Capital Gains Tax (CGT)

When you sell at a profit, you’ll pay CGT.

Non-Residents (including UK post-Brexit): A flat 19% tax on the gain (profit) if you are non resident. If you are resident in Spain for tax purposes, tax varies from 19% to 28% depending on the gain. The gain is the difference between your sale price and original purchase price (adjusted for costs and improvements).
3% Withholding (Retención): This is critical! The buyer is legally obligated to withhold 3% of the sale price and pay it directly to the Spanish Tax Agency as an advance payment towards your CGT. This is mandatory for non-residents.
- Example: Selling for €300,000? The buyer withholds €9,000 upfront.
Your Solicitor’s Role: Ensure the 3% withholding is correctly handled, calculate your actual CGT liability, file the necessary tax forms (Form 210), and claim any refund if the 3% withheld is more than your actual tax. They can also explore legal avenues to minimise your CGT legally.
For example, if you are older than 65 and you are resident for tax purposes in Spain you are exempt from capital gain tax, you don´t pay anything, there are also opportunities for exemption in cases where you reinvest the money in a different property and/or other specific financial products. You should consult a specialist tax lawyer in Spain, in order to plan the best tax options for your sale.

“Abad carried out the conveyancing on our property in a friendly and professional way, assisting in all aspects of the purchase. The office staff and the legal team are all very friendly and helpful. We still continue to use their services to do our Spanish tax returns and if we ever need any further legal or financial assistance in the future we now know who to contact.” – Dennis Sergeant, Google Review

Plusvalía Municipal Tax (IIVTNU)

This is a local municipal tax on the increase in the value of the urban land your property sits on.

Calculated Based On: Cadastral value of the land and years of ownership.
Varies by Municipality: Rates differ significantly between towns, even neighboring ones.
Who Pays?: Usually the seller, unless agreed otherwise.
“No Gain, No Tax” Rule: Important recent reform! If you sell at a loss or break-even, you can avoid Plusvalía, but you must prove no land value increase to the Town Hall.
Your Solicitor’s Role: Calculate your Plusvalía liability precisely (crucial as it varies locally!), determine if you qualify for the “no gain” exemption, handle the declaration to the Town Hall, and ensure you pay the correct amount. Given the complexity and local variations, expert help is invaluable.

Understanding Cadastral Value – The Foundation of Property Taxes

The cadastral value (“valor catastral”) is the administrative value assigned to your property by the Spanish authorities (Cadastre). It’s typically lower than market value and is the basis for:

Annual Property Tax (IBI): A percentage of the cadastral value.
Plusvalía Municipal Tax: Calculated using the cadastral value of the land.

Your solicitor can explain how cadastral value impacts your taxes and the sale.

Selling with Tenants, Mortgages, or Debts: Navigating Complex Scenarios

Selling with Tenants

Selling a property with tenants adds another layer of complexity due to Spanish tenancy laws, which strongly protect tenant rights. The existing lease agreement automatically transfers to the new owner, who essentially “steps into the shoes” of the landlord. This means the buyer must respect the lease terms for a minimum period, typically five years from the start date.

Moreover, tenants in Spain generally have a “right of first refusal” (derecho de tanteo y retracto) when the property is put up for sale. This means you must formally notify the tenant of your intention to sell, providing details of the price and terms, and give them 30 days to decide if they want to purchase the property on those terms. Only if the tenant declines can you proceed with selling to another buyer.

For a smooth sale process, meticulous documentation of the tenancy and strict adherence to these legal requirements are crucial. Your solicitor will ensure all necessary steps are taken to comply with the Urban Leases Act (Ley de Arrendamientos Urbanos, LAU), protecting both your interests and the tenant’s rights.

Can I sell a Property with Squatters (Okupas) in Spain?

It is possible to sell your property even if it has illegal squatters living in it. These transactions, typically carried out by investors, allow the seller to offload both the property and the issue of eviction, while the buyer acquires a property at a price below market value.

Both parties must seek legal advice to fully understand the responsibilities and risks involved in these transactions.

Outstanding Mortgages or Liens

Selling a property with an outstanding mortgage is a common scenario in Spain. The mortgage doesn’t prevent the sale, but it needs to be addressed during the closing process. Typically, the mortgage is cancelled at the time of sale using the proceeds from the transaction. You’ll need to provide a debt payoff letter from your bank, and the mortgage will be formally cancelled at the notary signing, either with a bank representative present or through a cancellation deed. This cancellation is then registered in the Land Registry to ensure the buyer receives a clear title, free of encumbrances.

In some cases, the buyer might choose to assume (subrogate) the existing mortgage, effectively taking over the remaining loan. This requires agreement from both the bank and the buyer, involving a novation of the loan contract. Subrogation is less common unless the mortgage terms are particularly favourable.

Spanish law mandates that the seller must deliver the property free of any charges or encumbrances, unless the buyer explicitly agrees otherwise. To ensure transparency and avoid potential disputes, a Land Registry extract (“nota simple”) is typically obtained to verify any registered mortgages, liens, or embargoes before the sale.

Property Debts (Community Fees, Utilities, Taxes)

When selling a property in Spain, it is essential to ensure it is free of any outstanding debts. This includes community fees (if the property is part of a community of owners), utility bills (electricity, water, gas), and property taxes (IBI).

For properties within a community of owners, you must provide a certificate from the community stating that all community fees are up to date. This is a legal requirement, and the notary will not authorise the sale without this certificate. The property itself is liable for any unpaid community fees from the year of sale and the three preceding years, so clearing these debts is crucial to protect both you and the buyer.

Similarly, providing the latest IBI (property tax) receipt is customary, although not a strict legal requirement. It demonstrates to the buyer that there are no outstanding property taxes, which could potentially lead to charges on the property.

While utility bills are personal debts, it’s common practice to clear any outstanding amounts before the sale. This prevents potential issues with utility companies refusing service to the new owner until any previous bills are settled.

In conclusion, ensuring the property is delivered free of any debts or encumbrances is a critical aspect of the selling process. Your solicitor will guide you through this process, ensuring all necessary certificates and documentation are in order, protecting your interests and facilitating a smooth transaction for both you and the buyer.

What Documents Do I Need To Sell My House : The Essential Documents Checklist

Selling property in Spain requires meticulous documentation. Your solicitor will guide you through this process, but here’s a comprehensive checklist to get you started:

Document Name	Description/Purpose	Relevant Regions/Notes
Valid ID (Passport)	Required for identification purposes.	All regions.
NIE (Número de Identificación de Extranjero)	Tax identification number in Spain, mandatory for property transactions.	All regions. Obtain one before the sale if you don’t have it.
Title Deed (Escritura Pública)	Original deed proving ownership of the property.	All regions. A certified copy from the notary or Land Registry is also acceptable.
Land Registry Extract (Nota Simple)	Recent extract showing current ownership and any charges on the property.	All regions.
Energy Performance Certificate (Certificado de Eficiencia Energética)	Rates the property’s energy efficiency.	All regions. Legally required for selling and renting since 2013.
Habitability Certificate / Occupancy License	Confirms the property meets minimum living standards.	Mandatory in Valencia and Murcia. In Andalusia, the original first occupancy license is usually sufficient.
Latest IBI (Property Tax) Receipt	Proof of up-to-date property tax payments.	All regions.
Community of Owners Certificate	Confirms no outstanding community fees.	Required for properties in communities of owners (e.g., apartments, condominiums).
Utility Bills	Recent receipts for electricity, water, and gas.	All regions.
Mortgage Documents	Details of any existing mortgage on the property.	If applicable.
Mortgage Payoff Statement	From your bank, confirming the outstanding mortgage amount.	If applicable.
Power of Attorney	Authorises your solicitor to act on your behalf.	If applicable, especially useful for sellers based in the UK.
Cadastral Certificate	Details the cadastral value of the property.	All regions.
Licensing or Legal Use Documents	For properties with special permits (e.g., rural houses, tourist rentals).	If applicable.
Decennial Insurance Certificate	Insurance covering structural defects.	For new or recently built properties.

Remember, this is a general checklist. Your lawyer will advise you on the specific documents required for your property and circumstances.

Gathering these documents early on will streamline the selling process and ensure a smooth transaction.

Can I Sell My Spanish Property from the UK Without Travelling (e.g for Health Reasons)

If you’re a UK resident unable to travel to Spain due to health or mobility reasons, selling your property might feel daunting. Fortunately, you don’t need to travel personally to Spain to complete the sale:

Power of Attorney (POA): Granting a Spanish solicitor Power of Attorney allows them to represent you fully throughout the sale. Your solicitor can manage everything from paperwork, tax obligations, and contracts to attending the notary signing on your behalf, ensuring the sale is fully compliant and legally sound.
Remote Consultations: A qualified Spanish solicitor can arrange consultations via video calls, phone, or email, ensuring you remain fully informed, involved, and comfortable with every decision without needing to travel.
Secure Document Exchange: Documents can be securely exchanged digitally, via courier services, or through secure cloud storage platforms, ensuring a smooth, secure, and efficient transaction.
Virtual Tours and Property Appraisals: Your solicitor can coordinate virtual property tours and appraisals with local estate agents or property professionals to help accurately determine the market value and facilitate a smoother sales process.

Your solicitor will handle every aspect, offering peace of mind and ensuring your sale progresses seamlessly despite your personal limitations.

I’ve Inherited a Property in Spain – What Should I Do?

Inheriting a property abroad, particularly in Spain, can be overwhelming, especially if you’re unfamiliar with Spanish laws and procedures. Here are the critical steps you should take:

Seek Expert Legal Advice Immediately: Engage a solicitor specialised in inheritance and property law in Spain. They will guide you through probate, taxation, and transfer procedures, ensuring compliance with both Spanish and UK inheritance laws.
Understand Your Tax Obligations: Spanish inheritance tax varies significantly by region and your relationship to the deceased. Your solicitor will clarify your tax obligations, identify exemptions or deductions available, and help minimise your tax liabilities.
Decide Whether to Keep or Sell: Carefully consider your long-term plans. Selling could be advantageous if you do not intend to use the property, helping you avoid ongoing maintenance costs, local taxes, and administrative responsibilities.
Prepare the Property: Your solicitor will assist in obtaining necessary documentation, such as the title deed, inheritance acceptance deed, and clearance of any outstanding debts, ensuring the property is legally ready for sale.

A qualified solicitor simplifies the inheritance process, safeguarding you against costly mistakes and unnecessary stress.

UK Solicitors Handling Client Queries About Spanish Property Sales

If you’re a UK-based solicitor approached by a client needing assistance with property sales in Spain, it’s crucial to connect with reliable, experienced Spanish legal professionals. Here’s how you can effectively support your client:

Collaborate with Spanish Property Law Specialists: Establish partnerships with reputable Spanish solicitors experienced in cross-border transactions, Spanish inheritance law, property sales, and taxation matters.
Provide a Seamless Client Experience: Facilitate introductions to trusted Spanish legal experts who communicate clearly in English, ensuring your client feels confident, supported, and informed throughout the transaction.
Understand Cross-Border Legal Implications: Collaborating with Spanish solicitors helps avoid pitfalls related to capital gains taxes, inheritance issues, compliance with local regulations, and complex administrative processes.
Maintain Clear Communication: Regular updates from Spanish solicitors can keep you and your client fully informed, providing reassurance and clarity throughout the selling process.

Developing a network of reliable contacts in Spain enhances your practice’s capabilities, protects your client’s interests, and ensures successful property transactions abroad.

For expert assistance, connect with ABAD Abogados today. With extensive experience supporting UK-based solicitors, ABAD Abogados ensures your clients receive clear, comprehensive, and reliable legal advice for a smooth and efficient property sale process in Spain. Contact us today to discuss your client’s needs.

Regional Variations: Murcia, Alicante, and Almería – Know the Differences

While Spanish property law provides a national framework, regional and local regulations introduce variations that can significantly impact the selling process.

In addition, there may be differences in urban planning laws depending on the Town Hall where your property is located. For example, if you have expanded the surface area of your property, built a swimming pool, or made other modifications, these must be legalised before selling the property to ensure a smooth transaction. Failure to do so could lead the buyer to request a price reduction due to legal irregularities. This is why it is crucial to seek the guidance of an expert lawyer when selling your property.

Here’s a breakdown of key differences in Murcia, Alicante (Valencian Community), and Almería (Andalusia), with corrections based on your fact-checking:

The Region of Murcia

Transfer Tax (ITP): 8% of the sale price, lower than Alicante. Reduced ITP rates (3%) apply for first-time buyers under 41, and families with 3 or more children.
Plusvalía Municipal: Rates vary by municipality, with an example rate of ~29% in Murcia city. Recent reforms allow exemptions if no actual gain is proven.
Habitation Certificate: Requires a Nota Simple Registral (property registry report) for all transactions, not just the standard certificate.
Military Permit: Still required for non-EU buyers purchasing properties in certain areas.
Coastal Zone Authorisation: Mandatory for properties in coastal areas, adding another layer of documentation.

Province of Alicante (Comunidad Valenciana)

Transfer Tax (ITP): 10% standard rate, with 11% for luxury properties over €1 million.
Plusvalía Municipal: Rates set by each municipality, with an example rate of 29% in Alicante city. Coefficients can be higher in high-demand areas.
Habitation Certificate: Strictly mandatory, with a “Declaración de Segunda Ocupación” required for resales.
“Valor de Referencia”: Buyer pays ITP on the higher of the sale price or cadastral reference value, potentially influencing negotiations.
Military Permit: Still required for non-EU buyers purchasing properties in certain areas.

Coastal Zone Authorisation: Mandatory for properties in coastal areas, adding another layer of documentation.

Province of Almería (Andalusia)

Transfer Tax (ITP): Lowest of the three regions, at 7%. Reduced rates may apply for primary residences under €150,000 and for young buyers through regional incentives.
Plusvalía Municipal: Rates vary by municipality, with an example rate of 27% in Almería city.
Habitation Certificate: First Occupancy License generally suffices for resales, streamlining bureaucracy.
Military Permit: Still required for non-EU buyers purchasing properties in certain areas.
Coastal Zone Authorisation: Mandatory for properties in coastal areas, adding another layer of documentation.

Key Takeaways for Sellers:

Murcia: Competitive ITP rates. Non-EU buyers of rural properties still need permits.
Alicante: Highest ITP (10%) and strictest documentation requirements, including Coastal Zone Authorisation and Second Occupation Declaration.
Almería: Lowest bureaucracy, with first occupancy licenses accepted for resales.

Important Note: Always consult with ABAD Abogados for municipality-specific plusvalía calculations and to determine if a military permit is required for non-EU buyers in Murcia.

By incorporating this fact-checked information, the section is now more accurate and comprehensive, providing valuable insights for British expats looking to sell their property in these regions.

Conclusion: Selling Your Property in Spain

Selling property in Spain as a British expat is undeniably complex. From navigating post-Brexit tax rules and regional variations to ensuring legal compliance and smooth transactions, the process demands expert guidance.

Engaging a Spanish solicitor isn’t an optional extra – it’s your essential safeguard. They provide:

Tax Optimisation: Minimising Capital Gains and Plusvalía.
Legal Protection: Ensuring compliance and avoiding pitfalls.
Process Management: Streamlining paperwork and communication.
Peace of Mind: Allowing you to sell with confidence, even from the UK.

“I thought my deposit on a property in Spain had disappeared without a trace until our group… were put in touch with Abad Lawyers – a blessing. They led us through the minefield of Spanish law… and ultimately to a full refund of our deposits – an absolutely brilliant outcome.” – Ralph Harris, Google Review

Don’t leave your Spanish property sale to chance. Contact ABAD Abogados today for expert legal assistance with selling your property in Spain and navigating the complexities of Spanish property taxes. Invest in expert legal counsel and unlock a smooth, successful sale.

FAQs for British Expats Selling Property in Spain

How Do I Sell a Property in Spain from the UK?

Selling from the UK is entirely possible with the right legal help. Here’s how:

Power of Attorney: Grant a Power of Attorney to your Spanish solicitor. This allows them to legally act on your behalf, sign documents at the notary, and manage the entire sale process while you remain in the UK.
Initial Consultation (Remote): Start with a remote consultation (phone or video call) with a Spanish solicitor to discuss your situation and property.
Document Management (Remote/Digital): Work with your solicitor to gather and share documents digitally or via secure mail.
Occasional Travel (Potentially): While Power of Attorney minimises the need to travel, you might need to visit Spain for certain steps, though often this can be avoided or handled by your solicitor.
Solicitor is Key: Your solicitor bridges the gap, handling all the on-the-ground legal and administrative tasks in Spain.

What Happens When You Sell a Property in Spain?

The core steps are:

Engage a Solicitor.
Due Diligence & Preparation.
Marketing & Find Buyer.
Sign Private Purchase Contract (deposit paid).
Sign Deed of Sale at Notary (ownership transfer, payment).
Post-Sale: Registration, Tax Payments.

Legally, ownership transfers upon signing the Deed of Sale at the Notary (“Escritura”). However, registration at the Land Registry (“Registro de la Propiedad”) officially formalises it against third parties.

How Much Does it Cost to Sell Your Property in Spain?

Costs for the seller typically include:

Estate Agent Fees: If used, typically a percentage of the sale price (negotiable, often 3-5% + VAT).
Solicitor Fees: Usually a percentage of the sale price or a fixed fee. Essential investment. (Expect 1-1.5% + VAT, but can vary.)
Plusvalía Municipal Tax: Variable, depends on location and property.
Mortgage Cancellation Fees (if applicable): Bank charges to cancel your mortgage.
Energy Performance Certificate (EPC): Cost varies (around €100-€300).
Community Fees (if applicable): Ensure up to date.
Non-Resident Capital Gains Tax (potentially): 24% of profit (though 3% withheld upfront may cover or partially cover this).
Moving Costs: If relocating.

What is The Tax When You Sell a Property in Spain?

Key taxes for sellers are:

Capital Gains Tax (CGT): 24% for non-residents (including British expats), 19% for non-residents EU-Residents, Norway and Island.
Plusvalía Municipal Tax: Local tax on land value increase.

Remember the 3% withholding for non-residents, which is an advance payment for CGT. Your solicitor will help you navigate these taxes and minimise your liabilities legally.

Can I Get a Power of Attorney to Sell Property in Spain?

Yes, absolutely. A Power of Attorney (POA) is incredibly useful, especially for sellers based in the UK.

What it is: A legal document authorising your solicitor (or another trusted individual) to act on your behalf in Spain.

Benefits for Selling:

No Need to Travel: Your solicitor can handle signings at the notary, paperwork, bank interactions, etc., without you needing to be physically present in Spain for every step.
Convenience & Efficiency: Streamlines the process, especially if you have time constraints or mobility issues.
Trusted Representation: Ensures a qualified professional is handling crucial legal and financial aspects in Spain.

How to Get One: Typically granted before a Spanish Notary (if you are in Spain) or at a UK Notary Public (and then legalised/Apostilled for use in Spain). ABAD Abogados can guide you on the process.

About Mr Isaac Abad Garrido

For legal enquiries, visit abadabogados.com or connect with Mr Abad Garrido on LinkedIn.

Essential Things You Need to Know if you are renting a property in Murcia or Valencia

New Laws: Spain has introduced stricter rules for tourist rentals in Murcia and Valencia, including a new national registry.
Compliance is Key: Hefty fines (up to €600,000) and rental bans apply for non-compliance.
Licensing: You need a tourist licence if you rent your property for 10 days or less in Valencia, or for any short-term period in Murcia.
Key Requirements: Ensure your property meets basic standards (water, electricity, etc.), has emergency equipment, and you have liability insurance.
Guest Registration: Register all guests with the police within 24 hours of arrival.
Taxes: Declare your rental income and pay the applicable taxes.
National Registry: All tourist rentals must be registered in the new national registry by July 2025.
How do I legally register my property?: ABAD Abogados specialises in tourist rental compliance and can guide you through the legal complexities.

Ensure your tourist rental property complies with the latest regulations to avoid hefty fines and legal complications.

Our expert legal team at ABAD Abogados is here to guide you through the process seamlessly.

Renting out your property in Spain

The Evolving Landscape of Tourist Rentals in Spain

Spain’s short-term rental market is booming, but it’s also undergoing a period of significant regulatory change.

Property owners and investors must stay informed and compliant with evolving laws to avoid penalties and ensure the long-term viability of their rental businesses.

The 2024 updates to tourist rental laws in Murcia and Comunidad Valenciana introduced stricter licensing requirements, enhanced enforcement, and new compliance measures.

Additionally, a new national registry for tourist rentals will come into effect in July 2025, centralizing data collection and potentially impacting regulations across Spain.

ABAD Abogados has observed a significant increase in client inquiries regarding these changes, highlighting the growing need for expert legal guidance in this evolving landscape.

Why Compliance Matters Now More Than Ever

Failing to comply with these new regulations can lead to hefty fines, property restrictions, and legal complications. Penalties for non-compliance can range from €10,000 to €600,000, depending on the severity of the infraction. In addition to financial penalties, authorities can impose property restrictions or even rental bans for repeat violations.

Understanding the new rules is crucial for owners looking to maintain profitable and legally sound rental operations. ABAD Abogados has successfully defended clients against unjust penalties by demonstrating proactive compliance efforts.

Understanding Holiday Rentals in Spain

Holiday Homes vs. Tourist Apartments: Key Distinctions

Holiday Homes (Vivienda de Uso Turístico – VUT): Single properties rented out for short stays.
Tourist Apartments (Apartamentos Turísticos): Multiple units managed under a single ownership.

Scope: Murcia, Comunidad Valenciana & the National Registry

This guide focuses on the new rules for holiday rentals in Murcia and Comunidad Valenciana. It also addresses the implications of the national registry, set to take effect in July 2025, which will centralize data collection and potentially impact regulations across Spain.

ABAD Abogados is closely monitoring the development of this national registry and will provide updates to our clients as they become available.

The National Registry for Tourist Rentals

What is it?

The national registry is a centralized database of all tourist rental properties in Spain. It is being implemented to improve regulation and oversight of the tourist rental sector, combat the underground economy, and protect consumer rights.

While the regulation came into effect on January 2, its enforcement will begin on July 1, 2025.

How does it work?

All owners who wish to rent their property to tourists will be required to register with the national registry and obtain a registration number. This number must be displayed on any advertisements or listings for the property. Online platforms (OTAs) will also be required to verify that properties listed on their sites have a valid registration number.

What is the purpose?

The main purposes of the national registry are to:

Increase transparency in the tourist rental market.
Ensure that all rental properties meet minimum legal requirements.
Reduce unfair competition from unregistered properties.
Protect tourists from scams and substandard accommodation.
Facilitate the collection of tourist taxes.

How will it affect owners?

Owners will need to register their properties with the Colegio de Registradores (College of Registrars) using a digital certificate and provide all required documentation, including proof of compliance with regional and local regulations.

They will also be required to submit an annual report with information about their rental activity. Failure to register can result in fines, being unable to list on OTAs, and even the suspension of rental activity.

How will it affect online platforms?

OTAs will be required to implement systems to verify the registration status of properties listed on their platforms. They will also need to cooperate with authorities by providing data on rental activity.

ABAD Abogados and the National Registry

ABAD Abogados can assist property owners with understanding the requirements of the national registry and ensuring their properties are compliant.

We can help with gathering the necessary documentation, navigating the registration process, and fulfilling ongoing reporting obligations.

Tourist Rental Laws in Comunidad Valenciana

Key Changes You Need to Know

Rental Duration Limits: Properties rented for 10 days or less require a tourist licence; rentals of 11 days or more are classified as seasonal rentals and fall under different regulations. ABAD Abogados advises that it’s crucial to accurately classify your rental duration, as miscategorization can lead to compliance issues.
License Validity and Renewal: Tourist licenses are valid for 5 years and require renewal through a new “responsible declaration.”
Homeowners’ Association Approval: New registrations require a certificate of approval from the Homeowners’ Association (Asociación de Vecinos), ensuring community consent for tourist rentals. ABAD Abogados notes that obtaining this approval can sometimes be challenging. We recommend engaging with your Homeowners’ Association early in the process to address any potential concerns and ensure a smooth application.
Prohibition of Per-Room Rentals: Entire properties must be rented; room-by-room rentals are prohibited under the new regulations.
Mandatory Cadastral Reference: The property’s cadastral reference (a unique identifier for your property) must be included in all advertisements and official documents. This can be found on your property tax bill or by contacting the Catastro office.

Mandatory Cadastral Reference: The property’s cadastral reference (a unique identifier for your property) must be included in all advertisements and official documents. This can be found on your property tax bill or by contacting the Catastro office.

- New License for Property Changes: If a property is sold or undergoes significant modifications, a new tourist licence application is required.
- Tourist-Only Use Restriction: Properties with a tourist licence cannot be used for long-term rentals; they must be dedicated solely to tourist accommodation.
- Commencement of Rental Activity: Owners must begin renting the property within 2 months of obtaining a licence, or the licence may lapse.
- Transition Periods and Deadlines:
  - Licences before July 1, 2018: No changes are needed for properties licensed before this date.
  - Licences from July 7, 2018 – August 2, 2024: These properties must comply with the new regulations by 2030.
  - Licences after August 2, 2024: Properties licensed after this date must meet the new rules immediately. ABAD Abogados recommends all owners, regardless of licensing date, review the latest regulations to ensure full compliance.

Local Council Authority and “Strained Areas”: Local councils have increased authority to regulate and potentially restrict holiday rentals in areas with high tourism impact or “strained areas.” This allows for greater local control in managing the effects of tourism on residential communities. ABAD Abogados can provide guidance on specific local regulations that may apply to your property.

Tourist Rental Regulations in Murcia

Decree 75/2005: Stricter Enforcement and the National Registry

While Murcia’s regulatory framework remains under Decree 75/2005, enforcement is stricter, and the national registry will apply from July 2025. This means property owners must be even more diligent in meeting requirements and reporting obligations.

ABAD Abogados has observed increased scrutiny of compliance in Murcia, making legal counsel more important than ever.

Essential Requirements for Compliance

First Occupation Licence & Accessibility Law Compliance: Properties must possess a First Occupation License and comply with accessibility regulations to ensure safety and access for all guests. ABAD Abogados can help you determine if your property meets the required accessibility standards.
Minimum Property Standards: These include ensuring a continuous supply of hot water, electricity, and essential amenities like a TV and waste disposal facilities. Regular cleaning and fresh bedding are also required. ABAD Abogados recommends keeping detailed records of cleaning and maintenance to demonstrate compliance.
Emergency Preparedness: Properties must have a first aid kit, an evacuation plan, and readily available emergency contact information.
Civil Liability Insurance: A minimum coverage of €500,000 is required to protect against potential damages or injuries to guests or the property. ABAD Abogados can advise you on the appropriate insurance coverage for your specific needs.
Mandatory Guest Registration: All guests over 16 years of age must be registered with the police or Civil Guard within 24 hours of arrival. ABAD Abogados emphasizes the importance of timely guest registration not only for compliance but also for security. We recommend using a secure online platform to streamline this process.

Registration Process: "Declaración Responsable"

Owners must submit a Declaración Responsable (responsible declaration) to the Tourism Institute of the Region of Murcia, declaring their intention to rent the property for tourism purposes and confirming compliance with all requirements. This allows them to begin renting legally while awaiting final approval, which typically takes around 3 months.

ABAD Abogados can assist with preparing and submitting the Declaración Responsable, ensuring all necessary documentation is included and the process goes smoothly.

Room Rentals: Conditions and Restrictions

Unlike Valencia, Murcia allows room rentals, but only if the owner resides on-site. This provision aims to maintain a degree of oversight and responsibility in shared living spaces.

Step-by-Step Guide to Obtaining a Tourist Rental License

Navigating the “Declaración Responsable” Application

Gather all required documentation:
- Property description and classification (holiday home or tourist apartment).
- Dates of rental availability.
- Detailed floor plan (1:100 or 1:50 scale).
- Proof of compliance with minimum property requirements (First Occupation License, accessibility, etc.).
- Civil liability insurance documentation.
- List of accommodations in Excel format, including details like property address, maximum occupancy, number of bathrooms, and number of TVs.
Submit the Declaración Responsable to the Tourism Institute of the Region of Murcia.
Await property inspection by the relevant authorities.
Receive license approval (typically within 3 months). You can begin renting immediately after submitting the Declaración Responsable.

Legal and Fiscal Obligations for Tourist Rentals

Taxation: A Detailed Breakdown

Income Declaration and Reporting: All rental income must be declared to the Spanish tax office (Agencia Tributaria). Digital rental platforms (Airbnb, Booking.com, etc.) are also obligated to report rental income to the tax authorities. ABAD Abogados can help you understand your tax obligations and ensure accurate reporting.
Tax Rates:
- EU/EEA Residents: 19% (with the possibility of deducting eligible expenses like mortgage interest, property taxes, and maintenance costs). ABAD Abogados can assist with navigating the complexities of expense deductions for EU/EEA residents, ensuring you maximize your returns while remaining compliant.
- Non-EEA Residents: 24% (generally without the ability to deduct expenses).

VAT and Tourist Tax: A 10% VAT rate applies to short-term rentals. Some regions, like Valencia, may also imp

Guest Registration: Reporting Requirements

As mentioned earlier, all guests must be registered with the police or Civil Guard within 24 hours of their arrival. This is a crucial security measure and a legal requirement for all tourist accommodations.

Insurance: Protecting Your Investment and Guests

Mandatory Civil Liability Insurance must cover at least €500,000 to protect against potential damages or injuries to guests or the property. It’s also highly advisable to obtain comprehensive holiday home insurance to cover other risks, such as accidental damage, theft, and squatter protection.

ABAD Abogados can help you secure the right insurance policies for your property.

Fines and Penalties for Non-Compliance

The consequences for non-compliance with tourist rental regulations can be severe:

Fines for Unlicensed Rentals: Operating without a valid tourist license can result in fines ranging from €10,000 to €600,000.
Fines for Failure to Register Guests: Failing to register guests with the authorities can lead to fines of up to €30,000.
Property Restrictions or Rental Bans: Repeat violations can result in property restrictions or even rental bans, severely impacting your rental business.

Opportunities For Medium-Term Rentals & Investment

The Rise of Seasonal Rentals: Advantages and Regulations

Properties rented for 11 days or more fall under seasonal rental rules, which are generally less stringent than those for tourist rentals.

This presents an opportunity for owners to avoid the complexities of tourist licenses while still catering to a growing market of expats, business travellers, and digital nomads seeking longer stays.

Investment Potential: Capitalising on the Growing Demand

With tighter regulations on short-term tourist rentals, investors are increasingly exploring the potential of medium-term rentals. This segment offers a more stable income stream and potentially lower compliance burdens compared to traditional holiday lets.

ABAD Abogados: Your Trusted Partner in Tourist Rental Compliance

Navigating Spain’s rental laws can be complex, especially with regional variations and recent updates. ABAD Abogados is a leading law firm specialising in property law and real estate, with extensive experience in assisting clients with tourist rental compliance in Murcia, Alicante and The Comunidad Valenciana.

Our team of expert lawyers can guide you through the legal complexities, ensuring you meet all requirements and avoid potential penalties.

We have offices in Murcia, Orihuela Costa (La Zenia), and Los Alcázares to serve you locally.

Experience, Expertise, and Personalised Service: ABAD Abogados employs a team of expert lawyers with extensive experience in property law and tourist rental regulations in Murcia and Comunidad Valenciana. We provide personalised legal solutions tailored to your specific needs and circumstances.
Multilingual Team for International Clients: Our team includes multilingual legal professionals who can assist clients from various backgrounds, ensuring clear communication and effective representation.
Proven Track Record of Success: We have a successful track record of helping clients navigate the complexities of tourist rental regulations, ensuring compliance and protecting their investments.

Conclusion: Understanding Tourist Rental Laws in Murcia & Valencia

Stay Ahead of the Curve: The Importance of Compliance

Understanding and complying with Spain’s evolving tourist rental laws is essential for successful and legally sound property rental operations. By staying informed and seeking expert legal advice, you can avoid costly penalties, protect your investment, and contribute to the sustainable growth of the tourist rental market in Spain.

FAQs

Q: What are the main differences between holiday homes and tourist apartments?

A: Holiday homes are single properties rented for short stays, while tourist apartments are multiple units under single ownership.
Q: What is the minimum required coverage for civil liability insurance?

A: The minimum coverage for civil liability insurance is €500,000.
Q: Can I rent out individual rooms in my property?

A: In Valencia, renting individual rooms is prohibited. In Murcia, it’s allowed only if the owner lives on-site.
Q: What are the tax implications for rental income?

A: Rental income is subject to tax, with rates varying based on residency status. EU/EEA residents are taxed at 19%, while non-EEA residents are taxed at 24%.
Q: What is the national registry for tourist rentals?

A: It is a centralized database of all tourist rental properties in Spain, designed to improve regulation and oversight of the sector.
Q: Is it mandatory to register my property with the national registry?

A: Yes, it is mandatory for all tourist rentals. Failure to register can result in fines and other penalties.
Q: When does the national registry come into effect?

A: The registry will be effective from July 1st, 2025.
Q: How do I register my property with the national registry?

A: You need to apply to the Colegio de Registradores (College of Registrars) with the required documentation, including a digital certificate.
Q: What are the benefits of registering my property?

A: Registration ensures compliance with the law, avoids penalties, and increases transparency and trust in the tourist rental market.
Q: Where can I get help with understanding and complying with the new tourist rental laws?

A: ABAD Abogados can provide expert legal guidance and assistance with all aspects of tourist rental compliance.

About Mr Isaac Abad Garrido

For legal enquiries, visit abadabogados.com or connect with Mr Abad Garrido on LinkedIn.

The 183-Day Rule Explained: Lessons from Shakira’s Tax Case and Expert Insights from ABAD Abogados

Shakira’s recent tax settlement with Spanish prosecutors has reignited interest in the 183-day rule, a cornerstone of Spanish tax law.

While the pop star avoided jail time by settling her case on November 20, 2023, she paid a steep price—€7.3 million in fines on top of €14.5 million in previously unpaid taxes.

The case illustrates how intricate and far-reaching tax residency rules can be, especially for individuals with international ties.

But what exactly is the 183-day rule, and why does it matter not just for celebrities but for expatriates, digital nomads, and global citizens? Let’s break it down.

Understanding the 183-Day Rule in Spain: A Clear Guide with Examples

The 183-day rule is a fundamental principle in Spain for determining tax residency.

While it might seem straightforward, its application can be complex, with significant implications for expatriates, digital nomads, frequent travellers, and international businesspeople. Here’s everything you need to know to navigate this rule effectively.

Shakira’s Case: A Modern Cautionary Tale

Between 2012 and 2014, Shakira maintained that her tax residency was in the Bahamas, a known tax haven.

However, Spanish prosecutors argued that her primary residence was in Spain.

Using a combination of social media posts, public appearances, and financial records, authorities constructed a timeline showing she spent more than 183 days annually in Spain during that period.

As tax lawyer Mr. Isaac Abad of ABAD Abogados explained in a Newsweek interview , such evidence has become increasingly critical in determining tax residency in high-profile cases.”

“This case is as easy or difficult as the evidence,” he noted, emphasizing how even digital footprints can be used to establish residency.

In the end, Shakira accepted a plea deal to resolve the case, avoiding jail time but paying millions in fines.

Her legal team argued they could have won the case but chose to settle to protect her family’s well-being and end the drawn-out proceedings.

The Basics: What Is the 183-Day Rule?

In Spain, the rule states that if you spend more than 183 days (approximately six months) in the country during a calendar year, you are considered a tax resident. This designation means you are required to pay taxes on your worldwide income, not just the income earned in Spain.

Key Details:

Calendar Year Basis: The Spanish tax year runs from January 1 to December 31.

Non-Consecutive Days Count: The 183 days don’t have to be consecutive. For example:

If you spend 120 days in Spain from January to May and return for 70 more days in October and November, you surpass the threshold.

Partial Days Count: Any part of a day spent in Spain—such as the day you arrive or leave—counts as a full day.

Additional Factors Beyond the 183-Day Rule

Economic Ties:

If your primary source of income or business operations is in Spain.

Example: A digital nomad who generates most of their income through Spanish clients may be subject to Spanish taxes.

Family Connections:

If your spouse and minor children reside in Spain, authorities may presume you are also a resident, regardless of your physical presence.

Example: A business executive frequently travelling outside Spain but whose family lives in Murcia may still be classified as a tax resident.

Practical Implications of Being a Tax Resident in Spain

Becoming a tax resident triggers several obligations:

Global Income Taxation: Residents must report and pay taxes on income from all sources, whether earned in Spain or abroad.

Example: If you earn rental income from a property in the UK, salary from a US company, and dividends from Spanish stocks, you must declare it all in Spain.

Filing Requirements:

Tax residents must file an annual income tax return using Modelo 100 by June 30 of the following year.

Other Taxes:

Tax residents may also be subject to wealth tax (Impuesto sobre el Patrimonio) on global assets exceeding a certain threshold.

Examples of the 183 day Rule in Action

Let’s break this down with some real-world scenarios:

Example 1: The Frequent Traveller

Dave, a digital marketing consultant, splits his year between Spain and the UK. She spends:

150 days in Spain from January to June.
50 days in December visiting family.

Outcome: Dave spent 200 days in Spain during the calendar year, surpassing the threshold. He is considered a tax resident in Spain.

Example 2: The Business Nomad

James, an IT consultant, spends 100 days in Spain and travels extensively the rest of the year. However:

His main client base is in Spain.
His bank account and business address are registered in Spain.

Outcome: Even though James spent fewer than 183 days in Spain, his economic ties make him a tax resident.

Example 3: The Family Scenario

Laura, a pilot, spends only 150 days in Spain annually due to her travel-heavy schedule.

However:

Her spouse and children live full-time in Alicante.
She owns property in Spain.

Outcome: Laura’s family connections establish her as a tax resident, even though she spends less than 183 days in Spain.

How to Prove Non-Residency

If you want to avoid being classified as a tax resident in Spain, you must prove residency in another country. A certificate of tax residency from the foreign jurisdiction is critical.

This document demonstrates that you are paying taxes elsewhere, potentially protecting you from Spanish tax claims.

Tips for Managing Your Tax Residency

Track Your Days Accurately:

Use tools like travel logs or apps to document your movements.

3 Tools to help you track your stay in Spain and avoid falling foul of the 183 day rule

1. Tracking Days

TrackingDays is a popular app designed specifically for residency travel tracking. Key features include:

Automatic tracking of travel days and nights in all countries worldwide
Schengen Area tracking for the 90 in 180 days rule
Rolling 365-day count for countries like New Zealand and Malaysia
Highly accurate tracking, even at country borders
Privacy-focused, with no collection of user travel locations
Flexible for various residency situations, including the 183-day rule

Link: TrackingDays

2. Monaeo

Monaeo is a personal audit defense system that offers:

Automatic day counting and location tracking
Real-time alerts as you approach residency thresholds
Audit-ready reports and data
Calendar display of annual travels
Data security and encryption

Link: Tax residency audits can be a pain | Protect yourself with Monaeo Personal Edition

3. Tax Bird

Offers a free version with basic features for tracking residency days.

Automatically tracks your location
Shows days spent in each state
Provides alerts when approaching residency thresholds

Link: TaxBird | Track & Prove State Residency for Tax Purposes

Keep Documentation Safe:

Keep boarding passes, hotel receipts, and proof of residency in another country to support your claims.

Seek Professional Advice

Spanish tax law is nuanced, and individual circumstances vary. Consulting a tax expert can help you navigate residency rules and avoid costly surprises.

90/180 Day Ap for Android & iOS & Online Calculator Reviewed

Having mastered the rules for entering Spain when Covid took hold we found ourselves negotiating a new set of rules following the U K exit from the EU.

These new rules as to how long we could stay in the Schengen Countries appeared complex in that we were told during a rolling 180 day period we could only spend 80 days in Spain.

So how would that work?

Very quickly, help arrived in the form of apps. And I immediately downloaded two which assured me they would make the whole process of working out how I would comply easy.

To fall foul of the rules would land me with all sorts of fines and worse of all a possible jail sentence. So I had to get it right. No room for mistakes.

The first app was The Schengen Calculator ( Android – iOS) . I found this quite difficult to negotiate.

And a lot of guesswork went into inputting entry and exit dates and wondering if I had got it right. Then identifying where on the app how long I would be allowed to stay.

There were calendars and no clear notes or explanations that I could see. Along with other icons, the whole thing was just a bit confusing.

However, obviously the site works, and maybe it’s just that as an older user, I lack the technical ability to navigate my way through it.

I then had a go on a web site, The Short Stay Visa Calculator. This was much more straight forward. And I could easily see where I had to input the entry and exit dates. The app calculated the number of days for each stay. Press confirm and I could see immediately how many days I could legally stay in Spain. The whole process just took a couple of minutes.

I should stress that these apps make it clear that they are only a helping tool. They do not constitute a right to stay for a period resulting from their calculations. So the buck stops with the user.

Finally, I suppose the third way to calculate my permitted length of stay would be to look at my diary or calendar and resort to maths to work it out myself , the old fashioned way.

The choice is yours.

Reviewed by Mr R.Rose

Protecting Yourself: How ABAD Abogados Can Help

Navigating Spanish tax laws requires expert guidance, especially for those with international ties. As demonstrated in the Newsweek articles, ABAD Abogados is a trusted authority in tax law, with extensive experience handling cases like Shakira’s.

Whether you’re:

An expatriate unsure of your residency status.
A business owner managing global income.
A digital nomad seeking clarity on tax obligations.
A homeowner who visits regularly

ABAD Abogados can provide tailored solutions to protect your finances and reputation. With a deep understanding of Spanish and international tax law, their team ensures you remain compliant while minimizing tax liabilities.

FAQs

1. How does the 183-day rule work in Spain?

The 183-day rule is a key factor in deciding tax residency status in Spain. If you are physically present in the country for more than 183 days within a single calendar year (January 1 to December 31), you are classified as a tax resident. As a tax resident, you are required to report and pay taxes on your global income, not just the income earned in Spain.

It’s important to note that the 183 days don’t have to be consecutive, and even spending a part of a day in Spain—such as arriving or departing—counts as a full day toward the total.

2. Can I stay in Spain for 90 days twice a year?

Yes, under the Schengen Visa rules, non-EU nationals can stay in Spain for 90 days within any 180-day period. This means you could stay for 90 days, leave for 90 days, and then return for another 90 days. However, this applies to short-term visits and does not affect the 183-day rule for tax residency, which calculates your presence over the entire calendar year.

3. How long can I stay in Spain if I own a property there?

Owning property in Spain does not automatically grant you any special residency rights. You can stay for up to 90 days within a 180-day period under Schengen rules if you are a non-EU citizen. To stay longer, you would need to apply for a visa or residency permit. Be mindful of the 183-day rule, as staying longer could make you a tax resident, regardless of property ownership.

4. Is Spain removing the 90-day rule?

No, Spain is not removing the 90-day rule. This rule is part of the Schengen Agreement, which applies to all Schengen Zone countries. Non-EU citizens must adhere to the 90-day limit unless they hold a residency permit or visa. However, things do change and we will be sure to keep this blog post updated, here you can bookmark this page

5. How long do I have to leave Spain before I can return?

Under the 90/180-day rule, you must leave Spain (and any other Schengen countries) for 90 days before re-entering for another 90-day stay. The 180-day period is a rolling timeframe, so the calculation considers your travel history over the past 180 days.

6. What does 183 days in a row mean?

The 183 days do not need to be consecutive. The rule calculates the total number of days you are physically present in Spain during a calendar year. For example, you could spend 120 days in the spring and 70 days in the autumn, and you would still meet the threshold for tax residency.

7. How does the 90 days out of a 180 work for Spain?

This rule is part of the Schengen visa regulations. It allows non-EU citizens to stay in Spain (or any other Schengen country) for 90 days within a rolling 180-day period. For instance, if you spend 90 days in Spain, you must leave and stay outside the Schengen Zone for the next 90 days before returning.

8. How many days can you live in Spain without paying tax?

You can stay in Spain for up to 183 days in a calendar year without being classified as a tax resident. However, you may still have tax obligations if:

You earn income in Spain.
Your primary economic ties are in Spain (e.g., your business is based there).

To avoid tax residency, ensure your stay does not exceed 183 days and keep documentation proving tax residency in another country.

9. What are the new rules for residency in Spain?

Recent changes mainly affect non-EU citizens after Brexit. UK nationals, for example, must now apply for a visa or residency permit to stay longer than 90 days in any 180-day period. Common permits include:

Non-lucrative Visa: For retirees or those not working in Spain.
Golden Visa: For property investors.
Digital Nomad Visa: For remote workers (introduced in 2023).

For EU citizens, residency rules remain unchanged, but they must still register with local authorities for stays longer than 3 months. For more information about how ABAD Abogados can help with residency, please contact us today

10. How long can you leave Spain without losing residency?

If you are a Spanish resident, the amount of time you can spend outside Spain without losing your residency depends on your permit:

Temporary Residency: You cannot spend more than 6 consecutive months or 1 year in total outside Spain over the 5-year period.
Permanent Residency: You can leave for up to 12 consecutive months or 2 years in total over a 5-year period.

Tax Residency: If you are a tax resident, leaving Spain for an extended period may affect your tax obligations, but not your residency permit.

About Mr Isaac Abad Garrido

For legal enquiries, visit abadabogados.com or connect with Mr Abad Garrido on LinkedIn.

The Ultimate Legal Guide for British Expats (Murcia, Alicante, Valencia & Almería)

Why ABAD Abogados? Your Spanish Property Law Experts

Table of Contents

The Spanish Property Buying Process: A Step-by-Step Guide

Step 1: Your Spanish Tax ID

Who is required to have a NIE?

Step 2: Spanish Bank Account – Simplifying Transactions

Step 3: Property Search & Initial Checks

Step 4: Reservation Agreement (Contrato de Reserva)

Step 5: Due Diligence – Your Legal Protection

Step 6: The Private Purchase Contract (Contrato de Arras) – Securing the Deal

Understanding the Deposit and its Significance:

The Three Types of Arras Contracts – Choosing the Right One:

Key Elements of the Contrato de Arras:

Step 7: Securing a Spanish Mortgage (If Needed)

Step 8: Signing the Title Deed (Escritura de Compraventa) at the Notary – The Final Step

What Happens at the Notary Appointment:

Step 9: Post-Purchase: Registration & Taxes

Regional Property Law: Murcia, Alicante, Valencia, Almería

Spanish Property Purchase Taxes: What to Expect

Buying Off-Plan Property in Spain: Risks & Safeguards

Community of Owners: Key Considerations

Clearing Property Debts & Bills: Essential Checks

Property Surveys in Spain: A Wise Precaution?

Conclusion: Secure Your Spanish Property with Legal Expertise

Everything You Need to Know About the Legal Process of Selling a House in Spain

Table of Contents

Why is Selling Property in Spain Complex for British Expats?

The Essential Steps to Selling Your Spanish Property (Simplified)

Sales Contracts and Completion

Post-Completion Procedures

The Tax Minefield: Capital Gains and Plusvalía – Solicitor to the Rescue!

Capital Gains Tax (CGT)

Plusvalía Municipal Tax (IIVTNU)

Understanding Cadastral Value – The Foundation of Property Taxes

Selling with Tenants, Mortgages, or Debts: Navigating Complex Scenarios

Can I sell a Property with Squatters (Okupas) in Spain?

Outstanding Mortgages or Liens

Property Debts (Community Fees, Utilities, Taxes)

What Documents Do I Need To Sell My House : The Essential Documents Checklist

Can I Sell My Spanish Property from the UK Without Travelling (e.g for Health Reasons)

I’ve Inherited a Property in Spain – What Should I Do?

UK Solicitors Handling Client Queries About Spanish Property Sales

Regional Variations: Murcia, Alicante, and Almería – Know the Differences

The Region of Murcia

Province of Alicante (Comunidad Valenciana)

Province of Almería (Andalusia)

Conclusion: Selling Your Property in Spain

FAQs for British Expats Selling Property in Spain

How Do I Sell a Property in Spain from the UK?

What Happens When You Sell a Property in Spain?

How Much Does it Cost to Sell Your Property in Spain?

What is The Tax When You Sell a Property in Spain?

Can I Get a Power of Attorney to Sell Property in Spain?

Essential Things You Need to Know if you are renting a property in Murcia or Valencia

Renting out your property in Spain

Why Compliance Matters Now More Than Ever

Understanding Holiday Rentals in Spain

The National Registry for Tourist Rentals

Tourist Rental Laws in Comunidad Valenciana

Tourist Rental Regulations in Murcia

Registration Process: "Declaración Responsable"

Step-by-Step Guide to Obtaining a Tourist Rental License

Legal and Fiscal Obligations for Tourist Rentals

Guest Registration: Reporting Requirements

Opportunities For Medium-Term Rentals & Investment

ABAD Abogados: Your Trusted Partner in Tourist Rental Compliance

Conclusion: Understanding Tourist Rental Laws in Murcia & Valencia

FAQs

The 183-Day Rule Explained: Lessons from Shakira’s Tax Case and Expert Insights from ABAD Abogados

Content

Understanding the 183-Day Rule in Spain: A Clear Guide with Examples

The Basics: What Is the 183-Day Rule?

Additional Factors Beyond the 183-Day Rule

Practical Implications of Being a Tax Resident in Spain

Examples of the 183 day Rule in Action

How to Prove Non-Residency

Tips for Managing Your Tax Residency

3 Tools to help you track your stay in Spain and avoid falling foul of the 183 day rule

90/180 Day Ap for Android & iOS & Online Calculator Reviewed