In a Spanish property purchase, almost all of the risk sits before you sign, not after. Once you are at the notary the checks are already done or they are not, and the buyer who skipped them has very little left to argue about.
This page sets out what has to be checked, in what order, and the problems that most often surface on Costa Blanca resales.
The checks that matter, before you sign anything
The nota simple
A nota simple is an extract from the Land Registry. It tells you who legally owns the property, what its registered description is, and what charges sit on it: mortgages, embargoes, easements, court orders.
It costs a few euros and takes a day. A surprising number of purchases proceed without anyone reading one carefully.
The registered description against the actual building
The registry entry describes a property of a certain size and layout. If the villa has a closed terrace, a pool or a converted basement that never went through planning, the building on the ground and the building on the register are not the same thing.
An undeclared extension is not automatically fatal, but it affects value, resale, insurance and what a future buyer’s lawyer will say. It has to be identified before the price is agreed, not after.
Community fees and the reserve fund
Under the Horizontal Property Act, unpaid community fees follow the property for the current year and the three preceding ones. If the seller owes them, the community can pursue the new owner. You need a certificate from the administrator confirming the position, and the seller must produce it.
Local property tax and utilities
Outstanding IBI (local property tax) attaches to the property. Water and electricity supply contracts, and whether the property has a first occupation licence, determine whether you can actually get connected.
The deposit contract
Most of the negotiating power is spent at the contrato de arras, the deposit contract, long before the notary. It sets the price, the completion date and what happens if either side pulls out. A standard deposit contract under article 1454 of the Civil Code means a buyer who withdraws loses the deposit and a seller who withdraws repays double.
Signing it before the registry checks are done is the most common and most expensive mistake in a Spanish purchase.
Buying costs
| Item | Who pays | Order of magnitude |
|---|---|---|
| Transfer tax on a resale (Valencia region) | Buyer | 9 % of the price |
| VAT plus stamp duty on a new build | Buyer | 10 % VAT plus stamp duty |
| Notary | Usually buyer | Set by tariff, by price and complexity |
| Land Registry | Buyer | Set by tariff |
| Municipal capital gains tax (plusvalía) | Seller by law | By municipality and years of ownership |
| Lawyer | Whoever instructs | Quoted in writing before we start |
The general transfer tax rate in the Valencia region fell from 10 % to 9 % on 1 June 2026, under Ley 5/2025 of 30 May. Lower rates apply in defined cases, among them the purchase of a habitual residence, buyers under a certain age, large families and buyers with a disability, and a higher rate applies to high-value purchases. We confirm the rate that applies to you before you commit.
Selling as a non-resident
If you are not tax resident in Spain, the buyer is legally required to withhold 3 % of the price and pay it to the Tax Agency on account of your capital gains tax. If your actual liability is lower, you reclaim the difference, and if you made a loss you reclaim the whole amount, but you have to file for it.
The seller also pays the plusvalía municipal, the municipal tax on the increase in land value, which varies by town hall.
Disputes we handle
- Community of owners: unpaid fees, challenges to resolutions, works to common elements, and the rules on holiday letting
- Building defects: claims against developer, builder and architect, within the statutory guarantee periods
- Off-plan purchases: recovery of amounts paid where the property is not delivered
- Landlord and tenant: non-payment, eviction, deposit and end-of-tenancy disputes
- Boundary and easement disputes between neighbours
- Co-ownership deadlock: where several owners cannot agree, article 400 of the Civil Code lets any one of them force the division or sale
Frequently asked questions
Do I need a lawyer, or is the notary enough?
The notary is a public official who verifies identity and legality of the deed itself. The notary does not act for you, does not negotiate the deposit contract, and does not advise you on whether the property is a good idea. Those are the parts where money is lost.
What is an NIE and when do I need one?
An NIE is a foreigner’s tax identification number. You cannot buy property, pay the tax or register the deed without one. Applications can be made at a Spanish consulate abroad or in Spain, and we can apply on your behalf under a power of attorney.
Can I buy without coming to Spain?
Yes. With a power of attorney signed at a Spanish consulate, or before a notary in your own country with an apostille, we can carry out the purchase and sign the deed for you.
The property has an extension that was never declared. Can I still buy it?
Often yes, but the position needs establishing first: whether it can be regularised, what that costs, whether any enforcement period has expired and how it affects value. That is a conversation to have before the deposit contract, not after.
What happens if the seller pulls out?
Under a standard deposit contract, the seller who withdraws repays double the deposit. Whether you can instead force the sale through depends on how the contract was drafted, which is one more reason not to sign the estate agent’s template unread.
Talk to us
If you are buying, tell us before you sign the deposit contract, when there is still something to fix. Contact us here, or call 654 581 493.