Frequently asked questions about Spanish lawTen questions, answered briefly.
Each answer starts with the essentials in one or two sentences. The details follow.
No, it isn't mandatory. The Spanish notary is bound to remain neutral and looks after the form of the purchase, not your interests. That's exactly what I'm there for: I check the Land Registry, charges and licences – before you pay the deposit.
The notary certifies the purchase and is bound to remain neutral – he advises neither side. The estate agent is paid when the deal closes. Many risks also arise before the notary appointment: with the reservation agreement and the private purchase contract, when the deposit is paid. That is why an independent review is worthwhile before you sign or pay anything.
Most of it is property transfer tax – or, for a new build bought from a developer, VAT. On top of that come the notary, the Land Registry and, where applicable, bank and advisory fees.
In the Balearic Islands, transfer tax is charged in bands according to the purchase price, so the exact amount depends on your property. Tell me the price and the property, and I will work out the purchase costs for your case.
The NIE is Spain's identification number for foreign nationals. Without it, you cannot buy property, pay taxes or open a bank account in Spain.
You apply at the Foreigners' Office or the police in Spain, or at the Spanish consulate in your country of residence – in many cases also through an authorised representative. I will tell you which route is quickest in your case.
Everything that could become expensive after you sign – and before you pay the deposit.
I check who owns the property according to the Land Registry and whether any mortgages or other charges are registered. I compare the Land Registry with the Cadastre, review planning law and licences – for example, whether all buildings are authorised – and check whether any property tax or owners' association fees are outstanding.
Sometimes yes, often not. An S.L. can make sense if the property is used for business purposes or if several investors are involved.
However, it involves ongoing costs for accounting and tax returns, and private use by the shareholders can have tax consequences. I will tell you frankly when an S.L. is worthwhile – and, if needed, coordinate with your tax adviser.
In five steps: NIE for the shareholders, reservation of the company name, bank account and share capital, incorporation before a notary, tax ID and registration with the Companies Registry.
How long it takes depends mainly on the NIE, the bank and the registries – usually a few weeks. I coordinate the steps so that nothing stalls.
Not necessarily. A German will can also apply to your assets in Spain. Whether a will in Spain is the right choice for you is something we will work out together, case by case.
An additional Spanish will can make the administration of the estate easier. But several wills can also make it harder if it is unclear how they relate to each other – in Spain as well as in your home country. If we decide on a will in Spain, I will align it with your existing one.
Since 2015, the EU Succession Regulation has applied in the EU: what counts is the law of the country where you last had your habitual residence.
If you live in another country – Germany, for example – the inheritance law of that country generally applies, including to your property in Mallorca. If you live in Mallorca, Spanish law applies in principle. In your will, you can choose the law of your nationality instead. I assess which solution suits you on a case-by-case basis.
Property in Mallorca is subject to Spanish inheritance tax, under the rules of the Balearic Islands. Spouses and children benefit from substantial tax relief there.
The tax return must be filed within six months of the death. If the deceased or the heirs live in another country, that country's inheritance tax may also apply; in Germany, for example, the Spanish tax is usually credited. Allowances and rates change – I will tell you the current position for your case.
Much of it, yes. With a notarial power of attorney, I can represent you before the notary, public authorities and registries.
You sign the power of attorney before a notary in your country (with an apostille) or at the Spanish consulate. Whether any individual steps require you to attend in person – at the bank, for example – I will clarify with you in advance.