Buying a home or commercial premises in Spain: a practical guide

Key points:

• Preliminary checks: Before committing, it is essential to request a nota simple (land registry extract) from the Registro de la Propiedad (Land Registry) to check the ownership and any potential charges (mortgages, liens).
• Binding contracts: The deposit agreement (contrato de arras) formalises the initial agreement. It is crucial to define its terms clearly, as it establishes penalties if one of the parties withdraws.
• Associated costs: In addition to the purchase price, you must budget for taxes (ITP or VAT), notary fees, registry fees, and, where applicable, administrative agency and mortgage costs.
• Professional advice: Hiring a lawyer ensures that all documents are correct, protects your interests during negotiation, and prevents future disputes.

Before you sign: property 'due diligence'

The purchase of a property, whether for residential use, as a business headquarters, or as an investment asset, should not be taken lightly. A hasty decision, without the proper checks, can lead to serious problems: from assuming the previous owner's debts to discovering that the premises do not have the required licence for your planned activity.

The first phase is always investigation. The key document is the nota simple informativa (informative land registry extract), which is obtained from the Registro de la Propiedad (Land Registry). This document summarises the legal status of the property and informs you about:

• Who the legal owner is: To ensure you are negotiating with the rightful owner.
• Description of the property: Surface area, boundaries, and cadastral reference.
• Charges and encumbrances: Whether there are mortgages, liens, easements, or any other limitations on the property.

In addition to the nota simple, it is essential to verify other aspects. For example, whether the property is up to date with payments of the Impuesto sobre Bienes Inmuebles (IBI) (Property Tax) and the community of owners' fees. A debt with the community of owners could be claimed from the new buyer.

Planning analysis

For commercial premises, an office, or a warehouse, the planning verification is even more important. You must confirm with the relevant local council that the property has the appropriate business licence for its intended use or that, failing that, it is possible to obtain one. A property may be legal but not suitable for your business project.

Frequently asked questions about property verification

1. What is the difference between a nota simple and a cadastral reference? The nota simple is an informative extract from the Land Registry. An official registry certificate is required to evidence the registered content formally. The cadastral reference is a unique identifier for the property with the Catastro (Cadastre), an administrative register which serves primarily a fiscal purpose for calculating taxes like the IBI. Both should be consistent.

2. If the seller assures me there are no debts, is that enough? No. Verbal statements have no value against registered debts or debts with the community of owners or the local council. The only guarantee is documentary verification through official certificates (nota simple, certificate of community debts, proof of IBI payment).

Contractual phases: from agreement to the deed

Once the due diligence is complete and the price has been negotiated, the process is usually structured in two contractual steps: the preliminary sales contract (contrato de arras) and the public deed of sale.

A contrato de arras is a private agreement whose nature and effects depend on its wording. It may record a payment on account under an already binding sale or other preliminary commitments; its title alone does not determine its legal consequences. The buyer pays a sum on account, usually a percentage of the total price. It is vital to define what type of arras are signed, as their consequences are very different:

• Penalty deposits (arras penitenciales): These allow both parties to withdraw from the contract. If the buyer does so, they lose the amount paid. If the seller does so, they must return double the amount.
• Confirmatory deposits (arras confirmatorias): These represent an advance on the price and do not permit withdrawal. In case of non-compliance, the aggrieved party can demand specific performance of the contract or compensation for damages.

The process culminates with the signing of the public deed of sale before a notary. At that point, the remainder of the price is paid, and the buyer acquires ownership of the property. Subsequently, the deed must be registered with the Land Registry for the ownership to be fully effective against third parties.

Potential issues	How ARROWS (office@arws.eu) can help
Hidden charges: Discovering a mortgage or a lien on the property after signing the deposit agreement.	Complete due diligence: We conduct a thorough study of the nota simple and request all necessary certificates to ensure the property is free of charges or so that you are aware of them before committing.
Planning issues: Buying premises that cannot be used for the desired activity due to limitations in the local development plan.	Administrative verification: We handle enquiries at the local council regarding the property's planning status and the feasibility of obtaining the licences you need for your project.
Unfair terms in the contract: Signing a deposit agreement with unfavourable conditions that leave you in a weak negotiating position.	Contract drafting and negotiation: We draft or review the deposit agreement and the deed of sale to protect your interests, ensuring a balanced and unambiguous text.
Latent defects: The appearance of serious defects after the purchase (damp, structural problems) that were not visible.	Preventive advice and litigation: We help you include guarantees in the contract and, if the problem has already arisen, we represent you in claiming repairs or financial compensation from the seller.

After the purchase: taxes and procedures

The purchase of a property entails a series of fiscal and administrative obligations. The main taxes are:

• If the seller is a private individual: Impuesto sobre Transmisiones Patrimoniales (ITP) (Property Transfer Tax), the rate of which is set by each autonomous community.
• If the seller is a company (new build): Impuesto sobre el Valor Añadido (IVA) (Value Added Tax, or VAT) and Actos Jurídicos Documentados (AJD) (Stamp Duty).

In addition, the seller must settle the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (known as plusvalía municipal) (Tax on the Increase in Value of Urban Land). Although this is the seller's responsibility, it is common practice to ensure in the contract that this payment is up to date to avoid future liabilities.

Finally, you will need to change the ownership of the utilities (water, electricity, gas) and notify the community of owners and the local council of the change of ownership for IBI purposes.

Final summary

Buying a home or commercial premises in Spain is one of the most significant investments for any individual or company. An error during the verification phase or in the drafting of contracts can block the transaction, generate unexpected extra costs, or lead to long and expensive litigation. A preventive legal analysis is not an expense, but an investment in security.

Entrusting this task to professionals allows you to focus on your business with the peace of mind that the transaction is proceeding with all necessary guarantees. To secure your investment and avoid unforeseen issues, you can contact the ARROWS International network in Spain via office@arws.eu.

Frequently asked questions about buying a home or commercial premises in Spain

1. Who chooses the notary? The right to choose the notary legally belongs to the buyer, who is the one who bears most of the notarial costs.

2. Can I buy a property through my limited company? Yes. Buying a property through a company is common practice, especially if it is to be used for an economic activity or as a rental investment. The tax treatment of the transaction and future income will be different from buying as a private individual.

3. What happens if the property has debts with the community of owners? The Ley de Propiedad Horizontal (Horizontal Property Act) establishes that the new owner is liable, with the property itself, for the previous owner's debts to the community corresponding to the expired part of the current annuity and the three previous calendar years. Therefore, it is essential to request a certificate of debts before signing.

4. How long does it take to register a property sale at the Land Registry? Once the deed has been signed before a notary and the taxes have been paid, the legal deadline for the registrar to assess and register the document is 15 working days from its submission.

5. What is liability for latent defects (saneamiento por vicios ocultos)? It is the seller's legal obligation to be responsible for serious, non-apparent defects in the property that make it unfit for its intended use or diminish its value. The buyer has a period of six months from delivery to make a claim. The lawyers of the ARROWS International network in Madrid can advise you on how to proceed in these cases.

6. Is it mandatory to register the purchase at the Land Registry? Although the sale is valid between the parties from the signing of the deed, registration at the Registry is fundamental. Only registration makes your ownership right fully enforceable against any third party (for example, the seller's creditors or a potential second buyer).

Disclaimer

Official sources reviewed

BOE consolidated legislation cited, the Spanish Tax Agency and, depending on the subject, the College of Registrars and applicable regional and municipal rules. Editorial review completed on 5 October 2026.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide on the subject according to the legal situation in 2026. Although we take the utmost care to ensure the accuracy of the content, regulations and their interpretation evolve over time. ARROWS advokátní kancelář, the head of the ARROWS International network, is registered with the Colegio de Abogados de la República Checa (Czech Bar Association) (its supervisory body) and holds professional indemnity insurance with a limit of CZK 400,000,000. To verify the current regulations and their application to your specific situation, please contact the ARROWS International network in Spain directly (office@arws.eu). We do not assume liability for damages arising from the use of the information in this article without prior individual legal consultation.