At CC Lawyers Alicante, we assist foreign buyers in navigating the Spanish legal system with clarity and confidence.

Step 1: Hire an Independent Real Estate Lawyer

This is the most crucial of all steps to buying property. Your lawyer protects your interests by:

• Checking legal ownership
  
• Ensuring no debts or charges are registered
  
• Reviewing urban planning status
  
• Verifying the property is free of tenants
  
• Confirming documentation at the Land Registry and Cadastre
  

Step 2: Obtain Your NIE (Foreigner’s Identification Number)

This is a legal requirement for any real estate Spain purchase. It is used for tax identification and must be obtained before signing any contracts. We handle this process for our clients.

Step 3: Sign the Reservation Contract

You typically pay €1,000–€6,000 to reserve the property. This document should always be reviewed by your lawyer before signing.

Step 4: Sign the Private Purchase Agreement (Contrato de Arras)

This contract outlines price, terms, and a deposit (usually 10%). If either party pulls out, penalties apply.

Step 5: Notary Signing and Public Deed (Escritura Pública)

All real estate transactions in Spain must be finalised before a notary. Your lawyer ensures the deed is correct and coordinates the payment and signature.

Step 6: Registration and Tax Payment

After the notarial act, your lawyer will register the property in your name and pay the applicable taxes:

• ITP: 10% in the Comunidad Valenciana for resale properties
  
• VAT + Stamp Duty: 10% + 1.5% for new builds
  
• Notary & Registry Fees: 0.5% to 1%
  

Step 7: Ensure Tax Compliance and Local Registration

After purchase, you must file Spanish non-resident tax returns and pay the annual IBI (property tax). We also assist with utility registration and local council notifications.

Why CC Lawyers?

• 20+ years advising international clients
  
• Experts in real estate Spain, especially Alicante and Costa Blanca
  
• Multilingual support in English and French
  
• Full service from NIE to deed and beyond
  

Book your free consultation with our legal team today.

+34 965 134 928
info@alicante-abogados.es

Legal notice: This content is for informational purposes only and does not constitute personalized legal advice. For a thorough assessment of your specific case, we recommend requesting a consultation with our team of specialised lawyers.

It will depend on the community where the property is located and the kinship between donor and donee. If the donee is under 21 years old, the tax will also be lower. There will also be capital gains tax to pay.

The tax to donate a property from father to son is not high and sometimes compensates the bother of going through the inheritance paperwork.

Sometimes, the donor wants to keep using the property and a very interesting option is to donate the “title” but not the usufruct (or right to use and enjoy the property).

So that the donor keeps the right to use the property for life and the donee will be the owner by title and when the donor passes away, the donee will get the right to use the property automatically.

DONATION TITLE DEED

To update the title deeds and make the donation official, the donor and donee have to do this with a notary public in Spain.

Both donor and donee will need a NIE number (fiscal number for foreigners).

If you have decided to gift a Spanish property to somebody, please contact us and we will help with the donation and even do the transfer on your behalf without having to travel to the Notary in Spain.

The massive fraud in Spain according to Ley 57/68 is well-known by everyone.  The legislators drafted the Act to avoid fraud, but after all and due to a void development of the Act, fraud has not been avoided.

The matter was simple. The Ley 57/68 establishes that it is mandatory to guarantee all the deposits paid on account by buyers whose properties are under construction. In other words, this means that any property buyer, who pays a deposit in advance for building his or her property, has to have the deposits guaranteed because in the event that the property is not built, the deposits will be returned.

Property buyers can face significant risks if they do not have bank guarantees, as these guarantees provide financial protection in case the developer fails to deliver the property.

IMPORTANT THINGS TO KNOW WHEN BUYING AN OFF-PLAN PROPERTY

Here are some legal tips to help property buyers protect themselves:

1. Conduct Thorough Due Diligence

• Research the Developer: Investigate the developer’s track record, reputation, and financial stability. Look for reviews and past project completions.
• Verify Legal Clearances: Ensure the property has all necessary legal clearances and approvals from local authorities, such as land title, zoning, and building permits.

2. Review the Contract Carefully

• Detailed Agreements: Ensure the contract details all aspects of the purchase, including the payment schedule, project specifications, delivery timelines, and penalties for delays.
• Force Majeure Clauses: Understand the force majeure clauses and how they might affect the project’s completion.

3. Insist on Bank Guarantees

• Bank Guarantee: While it is mandatory by law not always is provided, a bank guarantee ensures that the buyer’s money is protected if the developer defaults. This is particularly important in off-plan purchases.
• Escrow Account: Funds can be held in an escrow account, which releases payments to the developer in stages based on construction milestones. This reduces the risk of misappropriation of funds.

4. Legal Advice

• Hire a specialized in Real Estate: Engage a qualified real estate lawyer to review all documents and provide legal advice throughout the transaction process.
• Verify Title Deeds: Ensure the property has a clear title and there are no encumbrances or disputes related to the property.

5. Payment Schedule

• Linked to Construction Milestones: Structure payments to be linked to specific construction milestones rather than time-based schedules to ensure that the developer completes stages of construction before receiving payments.

6. Insurance

• Construction Insurance: Ensure that the developer has insurance covering construction-related risks.

7. Monitoring Construction

• Regular Updates: Request regular updates on construction progress and conduct site visits to ensure the project is on track.
• Third-Party Audits: Consider engaging a third-party auditor to oversee the construction quality and progress.

8. Understanding Cancellation Terms

• Clear Refund Policies: Ensure the contract specifies clear terms for cancellations and refunds, including the timeline and percentage of refund.

90. Keep Detailed Records

• Documentation: Maintain detailed records of all communications, agreements, payments, and receipts related to the property purchase. This documentation can be crucial in resolving disputes.

By taking these steps, property buyers can better protect themselves and mitigate risks associated with real estate purchases without bank guarantees.

yers.

 Please go to our post about bank guarantees for more information

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Inheriting property in Spain as a UK citizen involves navigating both Spanish and UK legal systems. Here  is  a comprehensive guide to help UK families understand the process, obligations, and potential complications.

1. Wills
It is advisable to have a Spanish will if you own property in Spain to simplify the process and ensure compliance with local laws. However, a UK will can also be recognized if it specifies that UK law should govern the inheritance, potentially
overriding the forced heirship rules for UK citizens. Our advise is to have a Will always.

Forced Heirship

Spain operates under a forced heirship system, which mandates that a certain portion of the estate must go to the deceased's direct heirs (spouse and children). The estate
is divided into three parts:
– Legítima (Compulsory Share): Two-thirds of the estate are reserved for compulsory heirs. One-third goes directly to the children in equal shares (the “legítima estricta”), and another third can be allocated more flexibly among the children and spouse (the
tercio de mejora)
– Free Disposal: The remaining one-third can be distributed according to the deceased’s wishes, as stated in the will.

Understand the process, obligations, and potential complications.

2. The Inheritance Process
Steps Involved
1. Death Certificate: Obtain a death certificate from the UK legalised with the apostille stamp.
2. Certificado de Últimas Voluntades: This certificate from Spain confirms whether the deceased had a Spanish will.
3. Will Execution: If there is a Spanish will, it needs to be executed by a notary in Spain to make the Estate distribution with the Inheritance Deed.
4. Heir Declaration: If there is no Will and the deceased was a Spanish resident who passed away in Spain and whose Estate was only in Spain, the heirs must be declared, which may require proof of relationship to the deceased.
5. Payment of Debts and Taxes: Any outstanding debts and taxes must be settled from the estate.
Documentation
Heirs will need:
– The deceased’s death certificate
– Certificado de Últimas Voluntades
– Copy of the will (if applicable)
– NIE (foreigner identification number) for all heirs

– Deed of acceptance of the inheritance (Escritura de Aceptación de Herencia)

3. Tax Implications
Inheritance Tax (Impuesto sobre Sucesiones y Donaciones)
– Residents: Spanish residents are subject to inheritance tax on their worldwide assets.
– Non-Residents: Non-residents are taxed only on Spanish assets.
– Rates and Allowances: Rates vary by region and relationship to the deceased. Spouses and children generally receive more favorable rates and allowances. In the Valencian Community (Torrevieja, Alicante, Benidorm, Costa Blanca area) the Inheritance and Gift tax is reduced almost to zero (it is reduced by 99%)
– Double Taxation: The UK and Spain have a double taxation treaty to avoid being taxed twice on the same inheritance.
Other Taxes
– Plusvalía Municipal: A municipal tax on the increase in the value of urban land, payable by the heir(s).
– Capital Gains Tax: Applicable if the property is sold after inheritance.

4. Practical Considerations

Legal Assistance
Engaging a bilingual lawyer who specializes in cross-border inheritances can greatly simplify the process and ensure compliance with both UK and Spanish laws.
– Complexity of Dual Systems: Navigating the different inheritance laws and tax systems in Spain and the UK.
– Documentation: Ensuring all necessary documents are correctly prepared and submitted in both countries.

Conclusion
Inheriting property in Spain as a UK citizen involves multiple legal and tax considerations. Proper planning, understanding the local laws, and seekingprofessional advice are crucial steps to ensure a smooth and efficient inheritance process.

Previously, the Inheritance Tax had a general 50% rebate, but now a 99% rebate will be implemented for children, spouses, fathers and mothers. This means that transfers of property between these family members will be practically tax-free in the region.

The repeal of the tax will apply retroactively from the date of the regional elections. The decision responds to the growing trend of people opting out of inheritances due to the associated tax burden. It is anticipated that this measure will encourage more people to accept inheritances and gifts without financial worries.
Despite the budgetary implications, it has been stressed that the impact on public finances will be minimal. The revenue generated by these taxes represented only 1% of total public revenue in the region.

This resolution is part of a series of measures taken by the new government to simplify administration and prioritise social policies that directly benefit citizens. These actions are expected to have a positive effect on the economy and improve public services in the Valencian Community.

In summary, the elimination of Inheritance and Gift Tax for first-degree relatives is a significant decision aimed at easing the financial burden on families and encouraging the acceptance of inheritances and gifts in the region. The government is confident that this measure will contribute to the economic well-being of its citizens and stimulate growth in the Valencian Community.

Contact us if you need help with your inheritance or gift in Alicante, Torrevieja, Altea or any areas in the Valencian Community.

The legal procedure for suing a builder who has not completed the work in accordance with the contract in Spain generally follows a series of legal steps. Here is an overview of the process for suing a builder:

1. Review of the contract: Before taking legal action, it is essential to carefully review the contract entered into between the parties. The contract should contain details about the time frame for completion, the specifications of the work, and dispute resolution mechanisms.

2. Formal communication: Before initiating legal action, we recommend sending a formal letter to the builder expressing concerns, detailing the violations of the contract and setting a reasonable deadline to correct the situation. This step can be helpful in resolving the dispute amicably before resorting to the courts.

3. Technical expertise: In many cases, it may be necessary to hire an independent technical expert to assess the condition of the work and provide an expert report to support the claim. This report can be crucial in the court process.

4. Initiate legal action: If formal communication and negotiations do not resolve the problem, you can initiate legal action by filing a lawsuit in the appropriate court. It is therefore advisable to seek the advice of a lawyer specialising in construction law to guide the process.

5. Evidence and arguments: During the court process, both parties will present evidence and allegations to support their arguments. This may include contractual documents, expert reports, correspondence and any other relevant items.

6. Judgment: Once the trial is held, the court will issue a judgment that will determine the outcome of the case. Depending on the court’s decision, the judgment could determine that the builder completes the work as stipulated in the contract. Another option, and the most advisable, is to award damages or take other remedial action.

It is important to note that the process may vary depending on the jurisdiction and the complexity of the case. Specialist legal advice from Cc Lawyers is essential to ensure that all steps are carried out correctly and to maximise the chances of obtaining a favourable resolution.

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The reference value is a crucial concept used to determine the amount of taxes associated with property transactions, such as Stamp Duty, Inheritance , Gift and Transfer Tax. It’s a value that is intended to be an objective and reliable measure of the property’s worth, and it plays a significant role in calculating the taxable base.

In Spain, the reference value is established based on certain criteria outlined by legal regulations. Here’s a summary of how this figure is determined:

1. Market Value Doctrine: The Spanish Supreme Court has established that, when there is a market for the dwelling in question, the “real value” coincides with the “market value.” In other words, the objective is to assess the value based on prevailing market conditions.
2. Cadastral Data Analysis: The Directorate General of Cadastre (Dirección General del Catastro) is responsible for determining it. They use data from the Cadastre, which is a public registry that provides information about properties. The analysis includes the prices reported by public notaries in real estate sale and purchase transactions.
3. Comparison and Certification: By analyzing market data and cadastral information, the Cadastre aims to determine it objectively and within the limits of the market value.
4. Taxable Base Determination: When a property transaction takes place, if the value declared by the parties involved or the agreed-upon price is higher than the reference value, the higher of these two values is taken as the taxable base for the calculation. If there is none available or certified by the Cadastre, the taxable base can be determined based on the value declared by the parties, the agreed price, or the market value.
5. Minimum Taxable Base: The figure is established as the minimum taxable base for Transfer, Inheritance, Gift or Stamp Duty (Impuesto de Transmisiones Patrimoniales, Actos Jurídicos Documentados, Impuesto sobre Sucesiones y Donaciones).
6. Checking the Reference Value: To check it, individuals can visit the Electronic Headquarters of the Cadastre. This online platform allows taxpayers to certify the figure on a specific date. Access to the consultation requires identification using the National Identity Document, digital certificate, or digital signature.

Law firms specializing in property conveyancing like Cc Lawyers, can assist individuals in determining the reference value  in Alicante or other areas like Torrevieja.

If you’re unsure about this minimum value of a dwelling you’re interested in purchasing, you can provide relevant information such as the Cadastral number from your IBI (Impuesto sobre Bienes Inmuebles) receipt and Cc Lawyers can  manage the consultation process for you.

In summary, this value is a crucial factor in determining the taxable base for various property-related taxes in Spain. It’s intended to be an objective measure of a dwelling’s value based on market conditions and is established by analyzing data from the Cadastre.

From Cc  Lawyers providing service to clients in Alicante and other areas like Torrevieja or the Costablanca, we encourage you to contact our lawyers specialized in conveyancing where you have doubts about the home or second residence in Spain that you wish to purchase. S

If you need to check for yourselves you can also do it in the Cadastro webpage where you can find the information in English here

Also, If you bought a bargain in Spain before 2022, the Spanish Treasury office might require you to pay extra! So what happens if the amount you paid was not the right one? They will require you to pay an extra amount according to their calculation. The tax office has up to 4 years to claim you to pay the difference.

If you receive the extra tax claim, you can appeal it. For appealing it you must get an appraisal, but if the tax authorities claim you the tax difference 3-4  years after you purchased it, the property value might have raised (renovations, higher market, etc.).

Cc Lawyers Alicante will check the minimum value of the property for you and will inform you if the sale price meets the tax office requirements so you know the exact tax that the purchase will cost you because knowing that information could make you go for one or another investment.

Checking the minimum value is included in our property purchase service.
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What is usucapion?

Usucapion in Spain is a way of acquiring ownership of a property through its continued possession. If we go to the etymology of the term, we can clearly understand its meaning: usucapion comes from the Latin words usus (use) and capere (acquire).

That is, if a person of legal age and legal capacity possesses an object without being its owner (normally real estate but it can be applied to any property) for a certain time, and under specific circumstances, through usucapion you can become the owner of said object.

It may happen that this object did not have a previous owner (typical case of unregistered land) or that it had a previous owner who, for whatever reason, would have allowed his right to expire.

Types of usucapions:

The Spanish Civil Code establishes two types of usucapions: ordinary and extraordinary.

Ordinary usucapion requires a shorter prior possession – twenty years – but in return it entails two requirements: that the possessor acts in good faith and that he holds a fair title. We will expand on these concepts later.

The extraordinary usucapion requires a greater possession – thirty uninterrupted years – but in this case the two requirements that are requested in the ordinary one would no longer be necessary. Precisely for this reason and despite its name, the extraordinary is much more frequent than the ordinary.

Usucapion procedure in Spain:

Obviously, to acquire a property or land through usucapion it is necessary to initiate a legal procedure in the Spanish Courts.

In this type of procedure – we are thinking of extraordinary usucapion, which paradoxically is the most common – the probative cornerstone is usually the one that allows proof of possession of more than three decades, which must also be uninterrupted.

We must focus on finding evidence that we owned that property more than thirty years ago, and that we also currently occupy it. We can use the payment of the ibi tax (tax on real estate paid every year), utility bills (water and electricity supply), invoices, etc.

If the Judge finds that you have enough evidence and you have proven the right, you will have a Judgment that will allow us to register the property in your in the Land Registry.

If this is your case, please contact us so we can help you register the property.

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The touristic licence is a permit that the city council grants so you can rent your property as a tourist accommodation and allows you to advertise it in tourist rental websites or if you would like a touristic company to rent it for you.

When is the rental considered touristic? (Art. 65. LAW 15/2018, June 7th, Generalitat, tourism, leisure, and hospitality in the Valencian Community)

Tourist accommodation refers to complete properties, which allow tourist use. This is any real-estate property that’s immediately available for repeat rentals to tourists for tourism, leisure, or holiday use.

Repeated rental is considered to exist when one of the following circumstances occurs with respect to the property:

1. a) It is advertised for tourist use by companies managing tourist accommodation.
2. b) It is made available to tourists, regardless of the period it is booked and if services of the hospitality industry are provided.
3. c) When tourism marketing companies are used.

Basically, it is touristic rental when the property will not be the main residence of the tenant.

Which requirements does the property need to fulfil for touristic license?

• All bedrooms and living room must have direct exterior ventilation.
• Be fully furnished.
• All the windows must have blinds to darken the light.
• Have basic utilities for comfortable living.
• Safety measures.
• A book for complaints must be available for the tourists.

The documentation necessary and requirements changes from town to town.

In Alicante for example, you are only allowed to rent to tourists in very specific areas of the town and only if the property has direct access or is in the ground or first floor to not to disturb the neighbours.

In addition, you can only rent full properties and not just rooms.

You will need an architect to help you with a report to present it in the town hall so they can authorise the tourist rental. The process can take 2-3 months.
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