Buying Property in Valencia: Legal Considerations for Expats
Are you an expat looking to buy property in Valencia? Spain’s real estate market offers great opportunities, but purchasing a home in a foreign country can be legally complex. As an experienced real estate lawyer in Valencia, I help expats navigate Spanish property laws, ensuring a smooth and secure transaction.
Legal Steps for Buying Property in Valencia
- Obtain an NIE (Número de Identificación de Extranjero)
Before you can buy property in Spain, you must have an NIE (Foreigner Identification Number). This number is required for all legal and financial transactions, including signing the title deed and paying taxes.
- Conduct a Property Due Diligence Check
One of the most crucial steps is verifying the legal status of the property. A real estate lawyer in Valencia can check the following:
- Ownership and debts: Ensure the seller is the legal owner and that the property is free of mortgages, liens, or debts.
- Urban planning compliance: Verify that the property is legally built and not subject to demolition orders.
- Community fees and utility bills: Confirm that the previous owner has paid all outstanding bills and community fees.
- Sign a Private Purchase Agreement (Contrato de Arras)
Before completing the purchase, both parties typically sign a Contrato de Arras, a reservation contract where the buyer pays a deposit (usually 10% of the price). If the seller withdraws, they must return double the deposit.
- Signing the Title Deed at a Notary
The final step is signing the Escritura de Compraventa (Title Deed) before a notary. This contract officially transfers ownership. Your real estate lawyer in Valencia will ensure all legal requirements are met before you sign.
- Register the Property and Pay Taxes
After signing, the property must be registered with the Land Registry (Registro de la Propiedad), and the following taxes must be paid:
- Property Transfer Tax (ITP): 10% for resale properties.
- VAT (IVA) and Stamp Duty (AJD): 10% + 1.5% for new properties.
- Notary and registration fees: Typically around 1-2% of the property value.
Common Legal Issues Expats Face
Many expats unknowingly face legal pitfalls when buying property in Spain. Here are some common problems and how a real estate lawyer in Valencia can help:
- Unregistered properties: Some homes, particularly in rural areas, may not be legally registered, causing future legal complications.
- Illegal extensions or renovations: Previous owners may have modified the property without proper licenses, risking fines or demolition.
- Hidden debts: Buying a property with unpaid community fees, utility bills, or tax obligations can lead to unexpected costs.
- Complex inheritance laws: If you inherit property in Spain, it’s essential to understand local inheritance tax laws and how they apply to foreigners.
Why You Need a Real Estate Lawyer in Valencia
A real estate lawyer ensures a secure, transparent, and legally compliant purchase process. Here’s how I can assist you:
- Conduct a full legal due diligence to verify the property’s legal status.
- Draft and review contracts to protect your rights as a buyer.
- Represent you at the notary to ensure a smooth transaction.
- Assist with tax calculations and registrations.
- Offer legal support after the purchase, including wills and property management.
Secure Your Property Purchase in Valencia
If you’re planning to buy property in Valencia, working with a trusted real estate lawyer for expats is essential. I have extensive experience helping international buyers safely invest in Spanish real estate.
📞 Contact me today for expert legal advice on buying property in Valencia. Let’s make your property purchase stress-free and legally sound!
Sandra Márquez
CEO Expat&Legal Spain