Guide for Buying and Selling Property on Urban Land in Spain

Selling or purchasing property on urban land in Spain requires careful legal preparation. At Frau Legal, we always recommend verifying all documents and procedures in advance, so that when a buyer or their lawyer appears, the transaction can be completed smoothly, securely, and successfully.

Below is a step-by-step guide to the main documents and requirements you should have ready.

1. The Parties Involved: Seller and Buyer

1.1. NIE (Foreigner Identification Number)

Both parties must be correctly identified and hold a NIE. Usually, the seller already has one, but the buyer must obtain it before signing the public deed of sale before the notary, as it is necessary for registration in the Land Registry.

If one of the parties is a company, it must hold the equivalent CIF (Tax Identification Number).

1.2. Representation

It must be clearly stated whether the parties act on their own behalf or through a representative.

• Any power of attorney must be notarised and valid.
• If it is a foreign document, it must be apostilled, legalised, and officially translated.

In the case of companies, identify exactly who is acting (director, manager, administrator, etc.) and ensure the documentation is ready for the notary.

1.3. Marital Property Regime

For buyers, it is important to clarify marital status early on. If married, the matrimonial property regime must be verified. Any marriage settlement must be presented to the notary with an apostille and sworn translation to avoid last-minute issues.

1.4. Beneficial Ownership Act

When dealing with companies, this declaration must be executed in advance.

1.5. Seller’s Tax Residency

If the seller is not a Spanish tax resident, the buyer must withhold 3% of the purchase price and pay it to the Spanish Tax Office as an advance on the seller’s potential capital gains tax.

If the seller is a foreigner but a Spanish tax resident, they must provide an official Tax Residency Certificate, issued by the Tax Office. Residency cards or census certificates do not serve this purpose.

1.6. Buyer’s Nationality

Non-EU buyers must obtain military permission to purchase properties on rural land. While this guide refers to urban land, occasionally an urban property may still be recorded as rural in the registry — in such cases, the notary and registrar will require this permit.

2. The Object of the Transaction: The Property

2.1. Land Registry Extract (Nota Simple)

This document shows the registered owner, property description, and existing charges such as:

• Mortgages
• Liens or seizures
• Easements
• Community regulations or covenants

Having the previous purchase deed (sale, inheritance, or donation) will simplify the process.

2.2. Previous Deeds

It is useful to have deeds of new construction declarations, extensions, or horizontal division (in case of co-ownership). This ensures the property’s legal history is complete and ready for verification by the notary or lawyer.

2.3. Cadastral Reference and Local Tax Receipts (IBI)

You should have:

• The cadastral reference number
• The last four years of IBI (property tax) receipts

By law, unpaid IBI from the last four years can be claimed. The current year’s tax should be split proportionally between seller and buyer, depending on ownership days.

2.4. Commonhold Properties

For properties within a community:

• Have the community bylaws and extraordinary budgets ready.
• Present a certificate of being up to date with payments, signed by the community president — mandatory under Spanish law.

2.5. Coastal Boundaries

If the property is near the coastal zone, request a certificate from Coastal Authorities confirming that it does not invade protected areas.

2.6. Coordination Between Property and Cadastral Records

Ensure that the Land Registry and Cadastral Office reflect the same reality (buildings, boundaries, surface area). Inconsistent records can delay sales or mortgage approvals.

2.7. Properties of Cultural Interest (BIC)

Consult the Consell Insular to confirm if the property is protected, as special conservation and renovation restrictions may apply.

2.8. Utilities

Have recent bills for water, electricity, and gas ready to prove there are no outstanding payments and to facilitate the transfer of contracts.

3. Relevant Documents and Urban Planning Aspects

3.1. Energy Efficiency Certificate

Mandatory under EU regulations. It can be obtained quickly, but it’s advisable to start early.

3.2. Certificate of Habitability

Required by Balearic housing law for any sale, rental, or transfer of use. Absence of this certificate must be explicitly mentioned in the contract or deed. Failure to do so can lead to fines.

3.3. Building Licenses and Certificates of Completion

Keep copies of:

• All building permits
• Certificates of completion from the architect and Town Hall
• Licences of first occupation
• Approved blueprints and final project plans

A technical report from an architect is highly recommended to confirm construction details and legal compliance.

3.4. Certificates of No Open Planning Infringement

Request certificates from both the Town Hall and the Consell Insular confirming there are no open disciplinary files against the property. These can take time, so apply early.

3.5. Urban Planning Certificate

Essential for plots or undeveloped urban land, this document details building conditions and development limits.

3.6. Water Resources

For detached homes, verify if there is authorisation from Water Resources for heating or geothermal systems.

4. If the Property Is Rented

Under Article 14 of the Urban Leases Act, the buyer will only assume the rental contract if it is registered in the Land Registry.

However, the tenant has pre-emption and withdrawal rights:

• Pre-emption right: The owner must notify the tenant of the sale terms, allowing 30 days to exercise their right to buy.
• Withdrawal right: If not notified, or if sold under better terms to another party, the tenant may still purchase under the same conditions.

Conclusion

These are just some of the legal and procedural aspects to consider when buying or selling property in the Balearic Islands.

At Frau Legal, our expert real estate lawyers in Mallorca, Ibiza, and Menorca are fully familiar with all legal requirements, documentation, and administrative procedures.

Whether you are preparing to list your property or have already found a buyer, our team can provide personalised advice to ensure a smooth and secure transaction.

👉 Contact us today for tailored legal guidance.