5 Rules for Safe Investments in Real Estate in Spain
Find hereafter five easy rules to follow to guarantee your investment in real estate in Spain.
Obtain the maximum information possible of the real estate
For this purpose, use the online services of the Registries of Properties, cadastral certifications, boards of provincial revenue and any competent public administration that can provide you with the relevant legal information. It is advisable to apply for licenses for first occupancy or business opening (with regard to business premises). Find out as soon as possible that the property is free of charges and encumbrances and up to date on tax payments or otherwise, quantify the charges to compensate them with the purchase price.
2) Sign a binding or private contract to secure your rights as soon as possible
A lot of transactions collapse because once having finished the analysis of the relevant information to the property, the seller has already decided in favor of another buyer, and in this case you have lost out on a great opportunity. Make arrangements to sign a private contract to block the sale of the property and to guarantee your acquisition rights at a fixed price. If you need more time to complete the study of the property, include an agreement thereon in the contract.
3) Decide whether to purchase the property under the constitution of a company or directly as an individual
The purchase of a property for investment can be carried out through the constitution of a company if the object of purchase is for the establishment as a business. It also may directly be acquired by a purchaser as an individual. Evaluate the advantages and disadvantages of both cases according to your interests assisted by the advice of a lawyer.
4) Go to the notary signature accompanied by a specialized lawyer who translates and explains the contents of the notarial document to you
A lot of investors go to the notary without the necessary advice, and they may not understand what they are signing. This is a risk that can be avoided if you choose a lawyer you trust who translates the full contents of the notarial deed and answers your questions thereon. Take all the time you need to read and to understand the contents of the purchase document.
5) Leave the subsequent processing of the formalities on the notarial deed to a specialized lawyer
Further to the signing at the notary´s office, important fiscal and administrative steps have to be carried out to ensure the payment of the taxes and the correct registration of the property under the name of the purchaser. Avoid any future problems with the public treasury entrusting a specialized lawyer for that purpose the soonest possible. Upon full completion of the purchase, do not hesitate to confer power of attorney on your lawyer so that he/she can continue processing on your behalf changes in entitlement of electricity, water, payment of any fees etc. Also consider making a Spanish Will which can help to avoid future inconveniences with regard to succession.
Enrique Delgado -Schwarzmann Jiménez
Delgado Schwarzmann – Vila Clavero & Asociados. Spanish Lawyers in Málaga, Spain
Member of Eurojuris España, international network of spanish law firms
