Buying and selling property as a non-resident
Bufete Barceló advises on every aspect of buying or selling a property in Spain. We handle the whole process, from the first step to registration in the Land Registry.
What do our legal and tax services include?
- Property due diligence: before you sign anything, we check that the property is free of charges, debts, attachments, planning problems or other issues.
- NIE (foreigner identification number) and non-resident NIF (tax number): both are essential for any transaction in Spain.
- Review and negotiation of the deposit contract (contrato de arras) or reservation agreement: we protect your interests before you commit any money.
- Representation before the notary: if you cannot travel to Mallorca for the signing, we can act on your behalf under a power of attorney.
- Transfer taxes: ITP (property transfer tax, 8–11% in the Balearic Islands for resale property) or VAT plus AJD (stamp duty) on new builds.
- Registration in the Land Registry and update of the Cadastre (Catastro).
- Transfer of utility contracts (water, electricity, gas).
We work for a fixed fee per transaction and tell you the total cost before we start, so there are no surprises.
Non-resident taxation in Spain
Owning a property in Spain brings annual tax obligations, even if you do not live here. Not knowing about them can lead to penalties and late-payment interest. We help you meet your obligations to the Spanish Tax Agency (Agencia Tributaria) correctly and efficiently.
Non-Resident Income Tax (IRNR, Modelo 210)
Every non-resident owner must file Modelo 210 each year, even if the property is not let. In that case, tax is charged on imputed income calculated from the cadastral value. If the property is let, whether as a holiday let or a long-term rental, the rental income is also taxed under IRNR at 19% (EU residents) or 24% (non-EU residents). We prepare and file the return and make the payment.
Wealth Tax (Impuesto sobre el Patrimonio)
Non-residents with assets in Spain must file Wealth Tax if the net value of their Spanish assets exceeds €700,000. The Balearic Islands have their own rules in this area. We advise you on whether the tax applies to you and how to minimise its impact.
3% withholding on a sale
When a non-resident sells a property in Spain, the buyer must withhold 3% of the price and pay it to the Spanish Tax Agency on account of the seller's IRNR. If the amount withheld is more than the tax actually due, the seller can claim back the difference. We handle both steps.
Municipal capital gains (plusvalía, IIVTNU)
When a property is sold, the seller must pay the plusvalía municipal, a local tax on the increase in land value over the period of ownership. We calculate the amount and arrange payment with the relevant town council.
Representation before the Spanish Tax Agency
If you receive a notice, a request for information or a proposed tax assessment from the Spanish Tax Agency (AEAT) about your assets or income in Spain, we represent you and defend your interests through the administrative process and, if necessary, before the economic-administrative tribunals (Tribunales Económico-Administrativos).
International inheritance
When a foreign national who owns assets in Spain dies, or when a foreign national inherits assets in the Balearic Islands, the estate has implications in two countries at once. Handling it properly requires knowledge of both private international law and Balearic civil law (derecho foral balear), which has its own rules, different from the Spanish Civil Code.
What do we handle in a cross-border inheritance?
- Balearic civil law and the European Succession Regulation (EU 650/2012): we advise on which law is most favourable for your heirs, a choice that can mean very significant tax savings.
- Inheritance and Gift Tax (ISD): the Balearic Islands offer significant tax relief for certain heirs. We calculate the actual tax due before the inheritance is accepted.
- Acceptance of the inheritance and allocation of assets: drafting the division of the estate (cuaderno particional), the deed of acceptance before a notary, and registration.
- Obtaining the European Certificate of Succession: the document that proves your status as heir or legatee throughout the European Union.
- A Spanish will: we strongly recommend that any foreign national with assets in Spain makes a will before a Spanish notary. It is a quick procedure that makes the inheritance far simpler for your heirs.
Investing in property through a company
In some cases, buying a property in Spain through a Spanish company (usually an SL, a private limited company) can bring significant tax and estate-planning advantages. This structure is especially worth considering for investors who buy several properties, plan to let them on a professional basis or want to make it easier to pass their assets on to their heirs.
We look at your specific situation (assets, tax residence, long-term goals) and advise whether this structure makes sense for you. If it does, we set up the company, register it at the Commercial Registry and handle its accounting and tax obligations in Spain.
Owners' communities
The Horizontal Property Act (Ley de Propiedad Horizontal, Law 49/1960) is one of the parts of Spanish law that most surprises foreign buyers. In Germany, the United Kingdom and most of Europe, ownership of flats and apartments works differently. In Spain, when you buy a flat, an apartment or a parking space in a building or development, you automatically become a co-owner of all the common elements: the entrance, the façade, the lift, the pool, the gardens and the shared installations. This co-ownership has legal and financial consequences that you should understand before you buy and for as long as you own the property.
What exactly is an owners' community (comunidad de propietarios)?
It is the compulsory legal body that brings together all the owners in a building or development to manage and maintain the common elements. It has its own annual budget, holds owners' meetings at least once a year and can adopt resolutions that bind every owner, including those who did not attend or who voted against.
What you should know before you buy:
- Debts to the community: when you buy a property in Spain, you become jointly liable for any amounts the seller owes the community for the current year and the three previous years. That is why we always check the community debt position as part of our due diligence.
- Community fees: each owner pays a regular fee (monthly or quarterly) based on their share of ownership (coeficiente de participación). We tell you the exact amount before you buy.
- Statutes and internal rules: each community can have its own rules on the use of common areas, holiday lets, pets, noise and other matters. We review them for you before you sign.
- Special levies (derramas): if the community approves major repairs or improvements, owners must make an extra payment. Before you buy, we check whether any levies have been approved or are likely.
Ongoing advice as an owner:
- We explain, in your language, the resolutions adopted at each meeting and what they mean for you financially and legally.
- We represent you at owners' meetings if you cannot attend or do not speak Spanish well.
- We draft objections to, or challenges against, resolutions that are contrary to the law or to your interests.
- If you are the community's president or administrator, we take court action to recover unpaid fees from other owners.
- We defend you against claims by the community over fees, works or the use of your property.
- We handle disputes with neighbours over noise, water damage, misuse of common areas or nuisance activities.
Legal advice for owners' communities:
We also act as standing legal advisers to owners' communities in the Balearic Islands, advising the president and the property manager (administrador de fincas) on calling and holding meetings, adopting resolutions, dealing with owners in arrears, building works and any legal issue that arises in the day-to-day running of the community.
Summary of services
In every case we give you a fixed quote before we start. Contact us for a tailored proposal, with no obligation.
