Spanish Real Estate Law
Spanish Real Estate LawUpdated on Monday 18th April 2016
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Foreign citizens and investors seeking to rent or purchase real estate property in Spain must first get acquainted with the legislation. The Spanish real estate market has developed quite a lot during the last few years which has enabled the Government to improve the conditions for buying properties in the country, especially for investors. In order to encourage foreign enterprisers to buy and rent properties in Spain, the Government has passed the Law of Urban Leasing which allows landlords to benefit from advantageous conditions upon letting properties.
The Spanish Law of Urban Leasing
The legislation on renting real estate property in Spain (La Ley de Arrendamientos Urbanos) was first enabled in 1964 and last amended in 2011. The new law creates a balance between landlords and tenants by allowing them to renew rental contracts on an indefinite period of time, but also helps landlords to protect themselves against tenants failing to pay their rent. Landlords also have the right to raise rents in accordance to current market prices, while tenants benefit from more secure conditions as landlords are required to review lease contracts every year.
Our Spanish lawyers can provide with you details about the rights of tenants and landlords under the actual Real Estate Law.
Legislation on buying real estate property in Spain
Foreign citizens moving and purchasing properties in Spain are subject to various legal requirements. Before starting the purchase process, they are advised to verify the property with the Spanish Property Registry. After reaching an agreement, the seller and the buyer will have a sale-purchase contract drafted by a Spanish public notary. The contract must contain:
- - information about the seller and the buyer’s identities,
- - a description of the property,
- - the selling price and the taxes,
- - the date the buyer will gain possession of the property.
Once the sale-purchase process is completed, the new owner may register the property with the Property Register in Spain. Also, in order to pay the taxes on the property, the buyer must register for taxation with the local authorities.
If you need assistance in purchasing or renting real estate, do not hesitate to contact our law firm in Spain.