Hiring a solicitor for property in Spain
Buying property in Spain involves a potentially complicated legal process and it is vital to get that process right. It is, therefore, very important that you find a good Spanish property solicitor early in the process, before you start looking for a property.
Your final use of the property will have implications for the type and location of any property that you buy. If retiring or relocating, ensuring that you have the right visa and are aware of residency rules is essential. If buying as a holiday home or rental investment, you’ll need to understand how this works and what your legal responsibilities as the landlord and owner are. You will also need to understand the simple legal requirements of owning the property such as regular taxes, inheritance laws and more.
The location of the property can have implications and possible restrictions too. For example, if you are buying an investment property, is it in an area in which you can do short-term rentals? It would be bad news to discover, after you have bought that your investment property, that local laws make short-term rentals impossible, meaning no income.
Property Guides and Your Overseas Home maintain a selection of independent property lawyers in Spain. Speak to our property consultants to be matched with a good property lawyer in Spain.
Role of lawyers in property transactions
The role of your lawyer in the property transaction is to ensure that you end up with the property that you want and that your interests are protected.
Your lawyer will do that by conducting title checks, preparing and reviewing contracts, arranging for payment of taxes, and registering the property in your name.
There may be other ways they can help too. If you choose to get a structural survey on your prospective property in Spain your lawyer can arrange this for you.
If you are planning to renovate or make substantial changes to a property, your lawyer will check if it will be possible to get the appropriate permissions before you buy. On these essential matters for you the buyer, an estate agent on commission may not be an impartial source of information.
When it comes to signing the final documents at the public notary, you can give your solicitor Power of Attorney to do this for you if being there in person isn’t possible.
Then, once you have purchased your property, your lawyer can draw up a Spanish will to indicate what should happen to the property if the need arises.
Legal Due Diligence Process in Spain
The specific property elements of the legal due diligence process in Spain include the following:
- Who owns the property, and therefore who has the right to sell it.
- If there are debts against it. For example, a mortgage or court judgement.
- If there are sitting tenants in the property.
- If it is subject to any special rules such as subsidised housing.
- In case of an urbanisation, whether the seller is up-to-date with the community fees.
- If the annual real estate tax has been paid.
- For new or off-plan homes, if insurance is in place to cover any damage that may result from structural defects of the building.
- For certain types of housing if there is any prohibition against selling it or any rights of first refusal from the authorities.
Ultimately, your lawyer in Spain will act in your interests and help you avoid potential pitfalls.
Solicitor’s and notary fees
Solicitors in Spain typically charge a fee of 1 to 2% of the property purchase price.
Bear in mind that this is not the only legal fee. The buyer is also responsible for the notary fees, which are set by the government according to the value of the property at between 0.2% and 0.5% of the purchase price.
There are also Land Registry charges to be paid once signed at the notary’s office. These are also on a sliding scale and usually amount to around €500.
Lawyer, solicitor, abogado
The Spanish for lawyer is abogado, which literally translates as “advocate”. The word solicitor, attorney and lawyer tend to be used interchangeably and mean the same thing.
Law firms will also employ paralegals. These are legally trained individuals who work under the supervision of qualified lawyers.
Lawyers vs Notary when buying property in Spain
Don’t be confused by the role of the notary (notario). This is a public official whose job is to take a private contract and, by witnessing it, turn it into a public deed, proving to everyone that you are the owner.
They operate from an impartial viewpoint. The notary is not an advisor and will not tell you what is better for you to do. They simply ensure that the law is complied with.
Therefore, you should also have your own lawyer, looking after your interests alone.
Choosing a good property lawyer in Spain
There are two golden rules when choosing and hiring a lawyer for your property purchase in Spain.
The first is that they should act independently of the estate agent or developer selling you the property. If an estate agent or developer suggests a lawyer, they should not have divided loyalties. Your lawyer should work for you only.
Secondly, they should have a specialism in Spanish property law. That may seem obvious, but there are many different legal specialities – criminal, family, company etc – and property law can be complex. Being a major financial transaction, property law can stray into tax and inheritance law, but a property specialist should be able to cover these areas too.
Legal firms in Spain that work in international property may also have an immigration law department attached to help British buyers who also wish to get a residence visa for Spain.
Language barriers
The language barrier alone means that international buyers will need a good property lawyer in Spain.
While English is widely spoken in Spain, legal documents and proceedings are conducted in Spanish. Some legal documents will need to be officially translated before you can sign them at the notary’s office. But before you reach that point it is important to get basic information in your own language to avoid misunderstandings.
Ideally, you will employ a lawyer fluent in both Spanish and English. Sometimes the actual lawyer will be Spanish, in which case you would then work more directly with an English-speaking paralegal.