Spanish Real Estate Due Diligence Checklist for Expats

Performing due diligence prevents costly surprises when purchasing Spanish property. Follow this checklist to confirm ownership, licences, and financial obligations before you sign the reservation contract.

Table of contents

• Reviewing property ownership
• Checking debts and encumbrances
• Confirming licences and habitability
• Inspecting community and utility costs
• Preparing contracts and deposits
• Closing at the notary
• FAQs
• Related guides

Reviewing property ownership

• Obtain a nota simple from the Land Registry (Registro de la Propiedad) to confirm the owner, plot size, and charges.
• Match registry details with cadastral information (referencia catastral).
• Verify that sellers with joint ownership or marital property share have authorisation to sell.

Checking debts and encumbrances

• Review outstanding mortgages, liens, or embargoes listed in the nota simple.
• Request certificates showing the seller is current on IBI property tax and community fees.
• Confirm utility bills are up to date to avoid inheriting arrears.

Confirming licences and habitability

• Ensure the property has a valid licencia de primera ocupación or occupancy certificate.
• For renovations or rural properties, verify planning permissions and energy certificates.
• Short-term rental investors should check local tourist licence rules before completing the purchase.

Inspecting community and utility costs

• Ask the homeowners’ association for meeting minutes and budgets to evaluate upcoming assessments.
• Review energy performance certificates and request average utility bills.
• Inspect shared facilities (pools, lifts, garages) for maintenance issues.

Preparing contracts and deposits

• Use a bilingual contrato de arras (reservation contract) specifying price, completion date, and penalties.
• Deposit typically 10% of the purchase price; clarify if it is a forfeitable or refundable deposit.
• Include clauses covering mortgage approval, licence verification, and furniture inventories.

Closing at the notary

• Arrange a power of attorney if you cannot attend the notary appointment in person.
• Provide bank drafts, NIEs, and proof of funds for anti-money laundering checks.
• The notary records the deed (escritura pública); register it promptly to update ownership.
• Pay transfer taxes (ITP or VAT/Stamp Duty) within the statutory deadlines.

FAQs

Can I rely on the seller’s lawyer? Hire independent counsel to avoid conflicts of interest and ensure unbiased due diligence.

Do I need a bank account in Spain before completion? Yes, most notaries require funds to originate from a Spanish account for transparency.

What if the property has unregistered extensions? Regularise additions with the town hall before completion or negotiate a price reduction.

Related guides

• Buying Property in Spain
• Mortgages for Expats in Spain
• Power of Attorney in Spain
• Spanish Tax Residency for Expats
• Spanish Inheritance Planning for Expats

Need a solicitor to review your purchase? Book a consultation.