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Article copyrighted © 2026. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
1^st of July 2026

Introduction

Buying in Spain can feel deceptively straightforward. You find a place you love, agree on a price, sign a few documents at the notary and pick up the keys. In reality, the legal side of buying property in Spain hides a fair few traps that don’t always get mentioned in estate agents’ brochures.

A good lawyer will flag the awkward bits early on, the grey areas that could cost you money or sleepless nights later. That includes everything from tax risks and under-declared prices to surveys, timelines and local capital gains tax. The details matter in Spain, and small oversights can have long-term consequences.

Under-declared value

This is much less common these days thanks to Anti-Money Laundering Regulations, both EU and Spanish, and a clampdown by the tax authorities. Nevertheless, you may come across the practice of under-declaring the price in the legal documents to avoid tax, and the accompanying concept of ‘B money’ or negro.

This process involves understating the value of a property so that the official sales price on the deeds is shown as between 5% and 20% (even up to 50% in the old days) less than the actual purchase price. The buyer is expected to deliver the balance in cash ‘under the table’. The benefits, on paper, are that the buyer pays less transfer tax and the seller pays less capital gains tax.

Resist all pressure to take part in this kind of fraud. Although it was once commonplace in Spanish property sales, it is illegal. If uncovered after the sale, you will be fined heavily. 

Also bear in mind that any under-valuation of your property will make you potentially liable for more capital gains tax when you come to sell it, as your ‘profit’ will appear to be higher than it really was.

Surveys and valuations

In Spain, there is no requirement to have any kind of building survey carried out when a property is bought or sold, although if you’re getting a mortgage, the lender will probably insist on a valuation survey.

But it makes sense to get a survey done for your own peace of mind. When researching who you need when buying property, make sure the surveyor is independent. The last person you want is someone with a social or business connection to the seller, the seller’s lawyer or the estate agent. 

It takes time for the surveyor to visit the property and prepare the report, so always commission the survey as early as possible. Some surveyors will give you a verbal report immediately after the inspection so that you can proceed (or not), but always insist on a follow-up written report as well. 

The three types of property surveys

Building Condition Report

This general health check comes with detailed advice on any work that needs doing before you buy it. Or you could negotiate a price reduction and do the work yourself. 

The surveyor takes measurements and compares them carefully with the Title and Tax descriptions, as discrepancies can indicate that work and building have been done without permission. Buy such a property, and you become liable for the fines. You could even be forced to demolish it. 

The surveyor will check that the property doesn’t infringe the coastal law (ley de Costas), verify the Energy, Technical Inspection and Structural Insurance certificates and provide advice on utility bills.

Structural Report

This is only required after the Building Survey has identified a serious structural problem and is normally carried out by a structural engineer.

‘Snagging’ Report

This is for new properties. As well as checking the services etc, the surveyor will examine the property and list even the smallest scrape or blemish the developer needs to fix. 

This list should be in both English and Spanish, as often the tradespeople who carry out the work will ignore anything they don’t understand. When the developer informs you, in writing, that the works have been completed, you or your surveyor can revisit to verify that everything has been done.

How much is a surveyor?

The cost, like many hidden expenses when buying property, will depend on the amount of time involved, and in this case, the surveyor. A survey for a large, older property in a rural location will cost much more than one for a new apartment, which is just around the corner from the surveyor’s office. 

You can make savings by asking for a reduced report listing only the defects found, their cause and how they can be fixed. 

Valuations

Surveys do not generally include a valuation of the property. If you want to reassure yourself that the price you’re paying is a fair one, you’ll need to commission a valuation survey. Save a bit of money by combining this with the Building Condition report.

Spanish building regulations are more stringent than they used to be. That’s not to say that today’s developers don’t also cut corners from time to time, but if the property you’re buying is more than 20 years old, you should definitely commission a survey.
The results put you in a stronger negotiating position. For this very reason, the seller may not consent to a survey being carried out before the private purchase contract has been signed. 

• If they refuse, there’s nothing you can do about it. It’s especially a problem if the mortgage lender requires a valuation. 

At the end of the day, if the seller refuses to let you carry out a survey, you can easily draw your own conclusions as to why this might be. And the safest advice would be to simply walk away at this point.

Negotiating the price with the seller

You may find the asking prices of property in Spain somewhat arbitrary and idiosyncratic. This can work against your ability to negotiate, as there is often little respect for the concept of objective value. 

However, at the very least, you should arm yourself with the prices of similar properties in the region and try to find out the area’s standard discount on the asking price.

Speeding up the process

One of the things you’ll need to agree with the seller on is a deadline for signing the deeds. This is usually between one and two months after the private purchase contract. 

If both sides want to complete faster than this, it’s possible to agree to skip the private purchase contract stage altogether. However, always build in sufficient time for your team to carry out their work.

Don’t get stuck with the plusvalía

Paying the local capital gains tax, the plusvalía, is the seller’s responsibility, but you will end up being liable for it if the seller disappears without paying it. This is because the debt is technically tied to the property, so once the property is yours, so is the debt. 

You should be particularly cautious if you’re buying from a non-resident. If you and your lawyer feel you need to address this risk, you can offer to pay the plusvalía, deducting the amount from the final payment you make to the seller at the notary’s office. This is known as a retention (retención, in Spanish). 

Lawyers may practice several retentions upon completion to safeguard the buyer’s interests in the event the seller has any outstanding debts or has been unable to prove there are no arrears.

LNA related services:

• Conveyancing in Spain – Buying
• Conveyancing in Spain – Selling

At Larrain Nesbitt Abogados (LNA) we have over 23 years of experience specialising in property conveyance and taxation. We also assist clients with immigration & residency visas (digital nomad visa), and inheritance procedures (probate). You can contact us by e-mail at info@larrainnesbitt.com, by telephone on our UK line (+44) 0754 3838 218 or Spanish line (+34) 952 19 22 88, or by completing our contact form.

Please note the information provided in this article is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarising, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

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