Why legal due diligence matters in Spain
Spanish real estate has unique legal characteristics that catch foreign buyers off-guard if not vetted. Properties can be subject to undeclared urban infractions, can sit on rustic land mis-sold as buildable, can have pending debts attached to the property (community fees, IBI, mortgages or embargoes), or can have a touristic rental licence that was withdrawn after a recent municipal change. None of these issues are visible from a property listing.
Our legal team is registered with the Bar Association of Alicante (ICAV) and the Bar Association of Madrid (ICAM), and reviews every property at the Land Registry (Registradores.org), the Catastro and the municipal urbanism office before any contract signature.
Standard conveyancing scope
Our standard buyer-side conveyancing covers:
- Nota Simple (Land Registry extract) — verifies legal owner, charges, mortgages, embargoes.
- Catastro reference verification — confirms the property in registry matches the physical property and tax records.
- Urban classification (urbano / urbanizable / rústico) and applicable Plan General de Ordenación Urbana review.
- Licence of first occupation (LFO) — required for legal habitation.
- Energy efficiency certificate (CEE) and ITE (technical inspection) where applicable.
- Community of owners status — debts, pending special assessments, rules.
- Touristic rental licence verification if relevant.
- Private contract (contrato de arras) drafting or review.
- Notary signature attendance with power of attorney if required.
- Registry filing post-signature.
Inheritance lawyer service
Foreign owners of Spanish property must address Spanish inheritance tax (ISD) regardless of their country of residence. The EU Succession Regulation 650/2012 allows you to choose your home country law to govern your Spanish estate, but Spanish inheritance tax still applies. The deadline for filing is 6 months from death (extendable +6 months on request).
We draft Spanish wills (testamento abierto notarial) coordinated with home-country wills to avoid double probate. We also model the Spanish inheritance tax exposure with the regional reductions of Valencia (very favourable for direct family).
International tax planning
Cross-border tax planning becomes critical the moment Spanish property or Spanish tax residency enters the picture. Common issues we handle:
- IRNR (non-resident income tax) on Spanish rental income and on imputed income for properties used personally.
- Modelo 720 disclosure of foreign assets for Spanish tax residents.
- Wealth tax (Patrimonio) on net assets above regional thresholds.
- Beckham law election for first 6 years of Spanish tax residency.
- Double tax treaty mapping (UK, DE, NL, FR, RU treaties have specific provisions).
- Capital gains tax on sale (19% for non-residents, scaled IRPF for residents).
We coordinate with tax advisors in both jurisdictions to deliver a coherent plan rather than fragmented advice.
Working with public institutions
Our legal practice maintains direct working relationships with the Spanish Land Registry (Registradores), the General Council of Notaries (Notariado), the Spanish Tax Agency (Agencia Tributaria), the Cadastre (Catastro) and the regional Generalitat Valenciana. Where possible we file documents electronically and obtain results in days rather than weeks.