The legal aspects of buying property in Spain
When buying a house in Spain, there are numerous aspects which
require a lawyer's expertise.
You know the dizzying moment, after endless house-hunting, when
you walk into a place and know it's the one. When that place is
in Spain, add to that ecstatic feeling a huge dollop of
sunshine, beaches and cheap wine - and suddenly all sorts of
thoughts can pop into your head, such as 'Why spend money on a
lawyer? This all looks simple enough to sort out myself'.
Well, you wouldn't dream of buying a house without a lawyer at
home. So why would you even consider it in a country where you
are probably unfamiliar with the legal system, the language
(even if you speak Spanish, who really understands legal
jargon?) and the ins and outs of local property culture.
Perhaps the single most important consideration, when buying a
property abroad, is to have a good, independent English-speaking
lawyer lined up so that they can get moving as soon as you give
them the nod.
Noemi Chavez, President of the Colegio de Abogados de Marbella
(Marbella's Law Society), cannot stress enough how crucial it is
that foreign buyers find an independent lawyer. "Do not use a
lawyer recommended by a developer or a vendor who has different
interests to yours. It is also not advisable to use legal
representatives based in the UK as they are not qualified as a
Spanish 'abogado' and do not know Spanish law," says Chavez.
"Property purchase regulations, formalities and searches vary
considerably from one country to another and only someone with a
proper degree in Spanish law - and only an 'abogado', not a
solicitor- can provide advice on contracts and deals done under
Spanish law," Chavez adds.
Your lawyer's work begins with ensuring the property is
legitimately owned by the vendor, that it is free from debts or
charges and that it has the valid title deeds. A lawyer will
negotiate with the other side over trickier elements of the
transaction, register the title deeds and sort out all relevant
transfer taxes. The double taxation agreement between the UK and
Spain means you shouldn't be taxed for the same things in both
countries, but if you own property in Spain you lawyer must
advise you on wealth tax, local taxes and - when it comes to
sell - capital gains tax.
They can also tell you how to get an NIE, a tax ID number, which
is essential for all home-owners. And, finally, you should
consult your lawyer about drawing up a Spanish will separate
from your UK will, to cover your Spanish assets.
The Spanish laws on inheritance are strict and complicated, so
you will need expert advice on the taxes involved and the other
financial implications of your purchase in the future. Even the
way in which your set up the purchase of your property at the
start will affect how your estate is dealt with and taxed in
future - and inheritance tax can be as high as 34-per-cent.
To draw up the document to cover a straightforward estate and
register it in Madrid, your lawyer should not charge much more
than about 200 euros. When looking for a good lawyer, ask for
personal recommendations, as you would at home.
Alternatively, ask your Lighthouse Customer Service Consultant,
who can recommend lawyers with whom Lighthouse has good,
longstanding relationships. Or if you are looking in the Malaga
province, contact Noemi Chavez at abogados@inverius.com for a
list of members of Malaga's Colegio de Abogados. Local
newspapers also carry adverts for conveyancing lawyers. In Costa
del Sol see Sur In English or Euro Weekly News, or in Costa
Blanca the main English-language paper is Costa Blanca News.
Make sure your lawyer speaks good English and is well practised
in helping British property buyers. And always obtain an
estimate of costs in advance. For property conveyancing, fees
will be calculated as a percentage of the sum involved - usually
1%. Only in the case of conveyancing for very low price
properties will the lawyer charge a fixed fee.