Galicia combines nature and spirituality 

16^th of September 2025

I continue today with my running series on top places to buy and live in Spain. You can find older entries on this series scrolling down below. These impromptu light-hearted guides are not meant to be exhaustive; they are just there as a lighthouse to shed light on an area’s main highlights and landmarks.

Introduction

Long before the shadow of Rome, and the advent of Christianity, Galicia was a mysterious verdant land, shrouded in mist, home to the fabled Keltoi, or Celts as we know them today. It is in fact the seventh Celtic nation alongside the traditional six Celtic nations of Ireland, Scotland, Wales, Brittany, Cornwall, and the Isle of Man. The Celts inhabited fortified hills known as castros. Despite Christianity, and the latter Roman influence, the spiritual Celts left an indelible mark on the land and its people, which is still apparent to this very day, including the musicality of its language (Galician).

Celts were skilled and resourceful warriors, who adapted fusing their own pagan beliefs with Christian ones, as can be gleaned from the cross with Celtic motifs which illustrates this very article. It is said druids still roam the land, preserving forests and Celtic traditions to this day. Your best chance is to look for them during the Autumn Equinox or the Samhain, when the barriers between our realm and the next are at their weakest; just try not to wander too closely to any druidic stone circles which dot the countryside at twilight (which allegedly harness natural energy from earth and sky). You really don’t fancy being transported to the otherworldly Fade; well, at least just yet!

Santiago de Compostela is much more than a pilgrimage centre; it has become a symbol. Nestled in the lush hills of northwest Spain, this Galician gem is more than just the end of the Camino de Santiago — it’s a place where history, faith, art, and daily life converge, creating a unique rhythm that draws visitors and inhabitants alike. The scallop shell is the symbol of the Camino de Santiago, the pilgrimage to Santiago.

Pilgrim following St. James's Way, notice the scallop shell

Camino de Santiago – St. James's Way

For over one thousand years, Christian pilgrims travelled from every corner of Christian Europe to, what was then, the far edge of the world: The Road to Santiago. It is a long and winding road, not so much a physical journey, albeit a spiritual one. The long journey tests a pilgrim’s mettle, who is rewarded with peace and insight. You will meet plenty of like-minded Christians from all walks of life, from all over the world, who will share your same beliefs and family values. Some of the friendships you’ll make will last for life. St. James's Way is not so much about the final destination; it’s about the journey itself and the people you will meet along the way. Much like life itself.

Celtic castro at Santa Trega, A Guarda, Galicia. Devised as a large maze for defence reasons.

The Roots: History & Legend

Santiago’s story is shrouded in legend. The remains of the Apostle Saint James are said to have been carried from Jerusalem to this lush land for its final resting place. This led to the foundation of Santiago's Cathedral in 1075 in his honour. It would take over two centuries, and multiple family generations, to complete this daunting task. Over the centuries, Santiago grew from a modest pilgrimage site to the capital of Galicia, weaving together Romanesque, Gothic, Baroque, and Renaissance artistry in its streets, plazas, and sacred buildings.

Walking through the Old Town (a UNESCO World Heritage site), you’ll see evidence of Santiago’s layered history: cobblestone alleys, majestic porticos, ancient cloisters, and façades showing every architectural chapter of Spain's North-West. The Cathedral of Santiago, with its Portico de la Gloria (Portico of Glory), is the star: spiritual, artistic, and an anchor for the pilgrim’s journey, and for the local community alike.

Young pilgrim looks up in wonder at Santiago's Cathedral

Landmarks & Must-Sees

• The Cathedral: Not just the pilgrimage’s endpoint, but an architectural wonder. Climb its towers (or the roof, for many) for sweeping views over the city and the verdant Galician hills.
• Praza do Obradoiro: The grand square in front of the Cathedral; where pilgrims arrive, where locals pass by, where festivals are celebrated, where tourists marvel.
• Monastery of San Martín Pinario: One of the largest monasteries in Spain; ornate, solemn, full of history.
• Museo do Pobo Galego: Galicia’s soul is laid bare here — its people, language, art, urban traditions, farming, music etc.
• Parque da Alameda: For fresh air, views over the old city and the distant cathedral spires, perfect for a sunset walk with Galician skies.

Galicia: Cradle of artists and intellectuals

Over the centuries, Galicia has been the birthplace of several renowned men and women. 

María Mayor Fernández de Cámara y Pita (epic soldier, courageous war heroine who bravely rallied the city troops in the defence of La Coruña against foreign sea raiders when all hope was lost; she single-handedly snatched victory from the jaws of defeat, turning the tide of battle and ensuring success through sheer force of will alone), Amancio Ortega Gaona (ingenious entrepreneur, businessman, billionaire, generous philanthropist), Manuel Fraga Iribarne (statesman, lawyer, elite civil servant, university professor at the Complutense de Madrid, ambassador, minister, creator of Spain’s Tourism Industry, founder of a political party), Adolfo Domínguez Fernández (fashion designer and businessman), José Calvo Sotelo (jurist and politician, his assassination sparked the outbreak of the Spanish Civil War), Ramón Menéndez Pidal (eminent historian and philologist), Rosalía de Castro (poet and novelist), Concepción Arenal (writer, activist and defender of feminism), Emilia Pardo Bazán (countess, novelist, journalist, literary critic, poet, playwright, translator, editor and professor), Camilo José Cela (writer, Nobel Prize laureate 1989), Ramón María del Valle-Inclán (dramatist and novelist, member of the Spanish Generation of 1898), Maruja Mallo (painter and artist), Luis Tosar (actor), Ramón G. Antonio Estévez (AKA Martin Sheen, US actor), Mario Casas (actor), Fernando Rey (actor), María Casares (actress), Luz Casal (singer), Carlos Núñez (musician), Xosé Manuel Budiño (musician), Jesús Vázquez (model and tv host), Paula Vázquez (model and tv hostess), Pablo Antonio Franco Otero (lawyer, youtuber, political activist, and bodyguard), Begoña Gerpe Álvarez (youtuber, political activist, exiled and lawyer).

The always glamorous Paula Vázquez

Foreign writers on Santiago de Compostela

Edith Wharton. She wrote about her 1920s pilgrimage to Santiago de Compostela in a travel diary that was later published as part of the book Return to Compostela. Her diary details the ancient Way of St. James and her pilgrimage through Spain.

“We were resolved to miss no stage of the ancient way, and from Jaca we went to Eunate, Logrono, Estella, Puenta de la Reina and Burgos, and thence, by way of Fromista, Carrion de los Condes and Sahagun, to Leon, and across the Cantabrian Mountains to Oviedo.” Making “pious pauses,” she writes in her journal, they stopped “again and again, to pick up and follow the tired foot-prints of medieval early travellers.”

Ernest Hemingway. Hemingway visited Santiago in 1923. He only referenced the city indirectly in his famous novel The Old Man and the Sea. The Camino de Santiago represents a challenging path that leads to profound insights, mirroring the complex relationship between struggle and purpose in the lives of characters like Santiago in The Old Man and the Sea. The Nobel Prize in Literature 1954 was awarded to Hemingway "for his mastery of the art of narrative, most recently demonstrated in The Old Man and the Sea, and for the influence that he has exerted on contemporary style." 

"It is good to have an end to journey toward; but it is the journey that matters in the end."

Paulo Coelho. Walked the Camino de Santiago in 1986. This pivotal experience led to his spiritual awakening and was the basis for his first book, The Pilgrimage, published in 1987. It is a guide to self-discovery and finding one's own path, laying the foundation for the philosophical themes in his later, and more famous work, The Alchemist.

"Santiago is not the end of the Camino, but the beginning."

Life, Culture & Atmosphere

Santiago de Compostela is lively but doesn’t rush you. The pace is more “meandering walk through cobblestones” than “rush hour grind.” Café terraces spill into streets; street musicians, especially Celtic bagpipers, add soundtrack to your walks; and the sound of Galician (the local language with roots in Celtic) mingles with Spanish and a smattering of other tongues.

Festivals are woven into life: Feast of Saint James on July 25th is the big one, with processions, fireworks, music, and pilgrims from all over. Local fiestas, music nights, and gastronomic fairs happen throughout the year, bringing old and young together.

A group of three Galician musicians. One of them is playing the traditional bagpipe (gaita) 

The Tarta de Santiago is the most typical sweet of Galician cuisine

Gastronomy

Food here has soul. Think pulpo a la gallega (octopus with paprika), empanada gallega (Galician pie), hearty stews, and cheeses. You need to try the Pimientos del Padrón (grilled spicy green peppers). If you enjoy seafood, order a Mariscada Gallega, you can thank me later. And as a dessert, you can order Filloas (sweet crepes), but I heartily recommend a slice of a Tarta de Santiago (roasted almond cake, worth bargaining your soul for). The vineyards aren’t far; Albariño from nearby Rías Baixas finds its way into many tables, and local markets brim with fresh produce. Cafés are good spots to linger, chat, watch people, sometimes read, sometimes simply enjoy. Although Santiago is landlocked, the sea is only a 40 minute drive away. Galicia is world-renowned for its fresh seafood, second to none.

Galician-style octopus

Modernity & Everyday Life

Although Santiago is steeped in tradition, it balances it well with modernity. Good infrastructures, universities (including the University of Santiago de Compostela, one of the oldest in Spain), vibrant cultural scene, decent public transit, well-preserved but lively neighbourhoods, and a constant flow of visitors and students.

The Atlantic weather is greener than most: frequent rain, temperate summers, mild winters. The surrounding landscapes are lush; walking outside the city is often rewarded with lavish forests dating back centuries, small rural villages, rivers, brooks, and tranquil spots (locus amoenus) dot the landscape. For those who love nature, the proximity to the Atlantic and Galicia’s wild rocky coast is a big plus. Here, nature rules unleashed.

Housing tends to be far more affordable than in major Spanish cities like Madrid, Barcelona, Valencia or Malaga. Though some parts of the old town are pricier (for their views, charm, and centrality). For many, the trade-off is worth it: heritage, community feel, greenery, and pace.

What makes Santiago special

• It still retains a sense of pilgrimage: people from all over the world arrive on foot — this gives the city a spiritual (and human) dimension that’s hard to replicate elsewhere.
• A strong Galician identity: language (Galician), music (gaita / bagpipes), folklore, cuisine, are seamlessly integrated.
• Arts and festivals. A city that cherishes its past while staying alive: festivals, arts, the university, students, tunos (wandering university student musicians dressed in ancient costumes, each badge on their cape marks a love interest), tourists — all blending together with locals to create a vibrant, bustling city. Clearly, the Celtic volkgeist of its forefathers remains very much alive today.
• Unspoilt natural beauty all year round. 

Who might love living (or visiting) Santiago

• Those seeking atonement, for God is merciful, or who wish to give back to our Lord through sacrifice.
• Lovers of history, architecture, and spiritual journeys.
• People who prefer a slower pace, quality of life, and meaningful community ties over dehumanised fast-paced city hustle. Wifi and mobiles are best left at home. Santiago is all about human connection.
• Students or academics (the university).
• Nature lovers who don’t want to be isolated — Santiago combines access to its lush countryside and coast with modern city amenities.
• Foodies who appreciate fresh produce, regional, seasonal cuisine, especially seafood.
• Writers assailed by writer’s block who shy away from the mundane. If anything, the majestic land and historic sites will overflood your senses and inspire you. Who knows? You may even pull a Pulitzer or a Nobel Prize. It sure worked for Edith Wharton and Hemingway. Santiago is not the end, it's the beginning.

Galicia: terra das meigas – land of witches

It is rumoured that Galicia acted as a refuge in old times, inhabited by the descendants of the social outcasts who escaped unjust persecution throughout Europe during the Middle Ages and were burned at the stake. Witches, by nature, are deceitful and manipulative creatures burning with ambition. Whilst surely this can be chalked down to nothing more than old superstitions and folklore, I have long harboured lingering doubts about the nature of an ex-Spanish Minister of Economy, born in Galicia, now hiding at the heart of the EIB. She certainly does fit the bill. Eu non creo nas meigas, mais habelas hainas.

The Future

Santiago continues to evolve and thrive. Efforts in sustainable tourism, heritage preservation, improving public services, and balancing the influx of visitors are key. Local policies are increasingly embracing green spaces, pedestrian-friendly zones, and supporting local arts, language and gastronomy. The challenge is maintaining the authenticity while welcoming growth.

Playa de las Catedrales on a foggy day, Galicia

In conclusion

Santiago de Compostela is far more than another worldly destination in your checklist; it’s a spiritual journey. The Camino de Santiago is an inner journey to know oneself. Its winding cobbled streets echo the footsteps of pilgrims over a millennium, but also resonate with the amalgamated culture and sense of community. For those seeking a place to rest their weary soul, with roots, beauty, purpose and charm, you’ll be hard pressed to find any better. Whether you visit for a weekend, stay for a term, or settle in for a lifetime, Santiago and its people will replenish your battered soul with their magic.

Galicia, terra de meigas
Galicia, land of magic

«No tengo miedo a fracasar, tengo miedo a no intentarlo.» – Amancio Ortega
I'm not afraid to fail, I'm afraid of not trying

Amancio Ortega Gaona (1936). Born in Busdongo de Arbas (Leon) to a humble working-class family (his father was a rail worker). He dropped out of school at age 14. After working for many years for other people, in 1975 he opened his first Zara store. He would go on to create INDITEX, a holding company which included several known brands such as Zara, Massimo Dutti, Zara Home, Pull and Bear, and Bershka. Today, the group has over 6,000 stores open worldwide, employing over 160,000 workers, and with an annual turnover of €40 billion. He is a generous philanthropist who has donated several times cutting-edge medical equipment to the Spanish government, among many other charity works that remain undisclosed. Amancio is the greatest Galician ever, and one of Spain’s greatest sons.

Other entries in this running series:

• Costa del Sol: your dream home in paradise – 8^th April 2022
• Sotogrande, the pearl of Cadiz – 3^rd June 2022
• Barcelona, the beautiful – 8^th November 2022
• Madrid, capital splendour – 21^st March 2023
• Mallorca: Heaven on Earth – 8^th June 2023
• Granada, the Last Kingdom – 12^th October 2023
• Seville, a dream city – 21^st March 2024
• Malaga, passion for life – 16^th September 2024
• Valencia, land of the brave – 21^st March 2025
• Santiago de Compostela: The road to God – 16^th September 2025

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. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. Voluntas omnia vincit.

2.025 © Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Lawyers has over 22 years' taxation & conveyancing experience at your service. We offer a wide range of over 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2025. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
10^th of September  2025

Property prices continue to mount in Spain.

This last quarter, ending on July, marks the 45^th quarter, or 11 straight years, of continued growth in Spanish property prices.

Moreover, as explained in previous articles, Spanish property prices have reached an all-time high with no signs of abatement.

As highlighted previously, there is a supply crunch in new build property (off-plan) which causes property prices on new construction to appreciate by two digits all over Spain. However, the novelty this last quarter is that buyers are now turning their eyes to resale property due to the chronic shortage of new construction.

Before, resale property was growing at a healthy national average of 8%, whereas off the plan was appreciating by two digits. Now, because buyers are locked out of buying new build property, the demand for resale property has increased dramatically, leading to a sharp increase in resale prices of 12.8% year-on-year, which is bonkers.

In plain English, because so few new build properties are being built in Spain (for all the reasons highlighted in a previous article) this has led to a massive price spike; frustrated property buyers are now looking with renewed interest towards resales, as they are much cheaper and abundant when compared to their off-plan counterparts (by as much as 44% cheaper per m²).

The ongoing off-plan supply crunch goes on to explain why, according to the latest sales figures published by Spain’s Bureau of Statistics (INE), resale property has officially overtaken off-plan in price rises.

It’s not magic, it's economics; the law of demand and supply at work.

Source: Newspaper La Razon

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specialising in taxation, and property conveyance. We also assist clients with immigration & residency visas 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. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. Voluntas omnia vincit.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 22 years of experience at your service. We offer a wide range of 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2025. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
1^st of September 2025

Unbeknownst to most non-resident property owners, on buying property in Spain, you automatically become liable to pay IBI and rubbish tax on the following year. No one will give you the heads up on these taxes, so it is up to you to find out how much you owe and comply with the Spanish Tax Authorities.

IBI tax is of crucial importance because it has associated a valuation for tax purposes of your home known as 'cadastral value' (valor catastral, in Spanish) which is used as the benchmark to calculate any, and all, property-related taxes.

1. IBI Tax - Definition
2. Cadastral Value - Definition
3. Importance
4. When are these taxes due?
5. Severe consequences of non-payment of IBI tax

IBI Tax - Definition

The Impuesto sobre Bienes Inmuebles (IBI, for short) is a tax that applies to both residents and non-residents. In some parts of Spain it is known as SUMA. All property owners must pay this tax every year.

This is a local tax levied by the town hall where your property is located. It is paid once a year (normally due in August through to November). This is Spain’s equivalent of the United Kingdom’s Council Tax. It varies from one town hall to the next. It is based on the rateable value of your property (0.4 – 1.1% of cadastral value per annum); for cheap properties (think rural land) it can be as low as a few euros whereas posh pads, in sought-after prime locations such as Marbella and Mallorca, command several thousand euros/year.

Cadastral Value - Definition

Is the assessed value local Tax Authorities give to a property. It is usually well below the market value. This rateable value is used as the taxable base to calculate a series of taxes. You will find the cadastral value of your property in one of your local tax bills (i.e. IBI). Be aware that a storage room or parking may be regarded legally as a distinct separate entity from your main home and therefore subject to their own individual cadastral values. A cadastral value, in general terms, is 30 to 40% below the current market price of a property. So, it does not equate to a property's true market value, it is actually well below it (which is good news).

Importance

• IBI tax is used as the benchmark to calculate all property-related taxes.
• On selling, a buyer’s lawyer will demand copies of IBI and rubbish tax invoices to prove a seller is up to date. 

When are these taxes due?

Town halls are empowered to rule on this, so it varies. Normally, it is payable once a year, typically from August through to September.

Whoever owns the property on the 1st of January is liable to pay these taxes, by law.

Severe consequences of non-payment of IBI tax

• It may lead to your property being impounded and sold off in a public auction by local authorities. Spanish town halls, besieged by falling revenue, are becoming increasingly adept at pursuing aggressively this local tax post-credit-crunch; particularly for high-end property.
• It is not possible to file and pay NRIT and NRIIT taxes, as it requires for its calculation IBI tax. This in turn attracts fines, delay interests, and surcharges.
• On selling, a buyer’s lawyer will practice a huge retention to safeguard against any unpaid IBI tax.
• As a seller, you may forfeit the 3% sales proceeds tax rebate (plus legal interests). On selling, when a seller is non-resident in Spain, buyers must withhold 3% of the sales proceeds by law and pay it into the Spanish Tax Office. Non-resident sellers are entitled to a tax rebate on the 3% (subject to criteria).

Larraín Nesbitt Abogados can assist you domiciling both taxes wherever your property is located in Spain. Give us a call. We offer this one-time service:

IBI tax (town hall rates) and refuse collection (basura)

At Larrain Nesbitt Abogados (LNA) we have over 20 years’ experience assisting clients buying, selling, or renting properties. We can also offer you a competitively priced accounting service to file your landlord taxes every tax quarter nationwide. We are also specialized in immigration & residency visas. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88, or by completing our contact form to book an appointment.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2023 © Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Abogados (LNA) has over 22 years of experience at your service. We offer a wide range of 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record of successfully assisting expats all over Spain.

You can review here our client’s testimonials.

Article copyrighted © 2025. Plagiarism will be criminally prosecuted

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Abogados
30^th of July 2025

Summer has arrived, and with it the holiday season is at its peak.  

Scammers are also at their peak, as a new rental season is upon us to fleece unsuspecting punters.

The best way to avoid falling for a scam is to be aware of it.

I have collated below eight tips that may help you avoid being scammed on renting a holiday home in Spain.

1. Fake listings. Scammers use enticing photos from legit sites for their phoney property listings. When you arrive at the property, it's either not up for rental or it's occupied by someone else.
2. Bait and switch. The property shown in the photos is not the same one when you arrive.
3. Property is listed below the market rate As they say, if it sounds too good to be true it probably is. You know that €2,000 a month villa in Ibiza you are being offered? Yep, it’s a scam.
4. The person you are dealing with is not the owner. This is normally a telltale sign you are being scammed. Excuses given will be that they have been left in charge of the property as the owners live abroad, etc. Always ensure the person you are dealing with is the owner, realtor, or property manager.
5. You are asked to pay in cash or by other exotic means which are not traceable (i.e. Bitcoin).
6. You are asked to make overseas payments to a country other than Spain.
7. Always in a rush. Pay up or give up. They typically give you under 24 hours to pay them as they have “a long waiting list”.
8. You are asked to pay in advance the full rental price without meeting them in person or physically touring the place yourself. Virtual property tours are a huge red flag.
   

Available services from LNA:

• Holiday Rental Accounting Service (HRAS)
• Rentals (contract drafting)
• Contracts (read & review)

At Larrain Nesbitt Abogados (LNA) we have over 22 years’ experience assisting clients buying, selling, or renting properties. We can also offer you a competitively priced accounting service to file your landlord taxes every tax quarter nationwide. We are also specialized in immigration & residency visas. 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 to book an appointment.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2024 © Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Lawyers has over 22 years' taxation & conveyancing experience at your service. We offer a wide range of over 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2025. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
30th of June 2025

Unless you have been living under a rock over the last month, you likely already know that Spain declared war against holiday rentals, specifically illegal ones. The Spanish government launched an aggressive crackdown on tourist rentals (short-term lets).

Unbeknownst to most landlords, a war is being waged against them by Spain's government. The reason behind the latest witch hunt is that property and rental prices have spiralled out of control in Spain, reaching all-time highs. Most natives can no longer access housing or rentals at affordable prices (Spanish wages have barely increased over the last decade whilst inflation remains unchecked leading to a generalised loss of purchasing power). These disenfranchised voters form the core of the voters of the current government, so it has been forced to do something about the situation given the growing discontent under the sweltering heat.

The government is shifting the blame on foreigners (always useful scapegoats as they cannot vote), and tourists in particular, for the general increase in prices. The reality of course is quite different; tourist accommodations account for under 1% of properties. But hey, don't let the truth spoil a good headline! 

Today’s press reports that the government denounced over 3,500 properties in Madrid alone,. These properties were being offered as tourist accommodations. They lacked a Tourism Licence or the new rental registry code, or both.

This example is only for Madrid; in every region of Spain thousands of properties are being reported by the government for large fines as I write these lines. The government uses an army of individuals who trawl online property portals and report them to regional authorities, who then fine them (as this is a devolved competency). 

One – of many – consequences this crackdown on short-term lets will have is to dramatically increase the price of tourist lets. This is because thousands of landlords, who do not currently comply with the new tourist laws, will be forced to pull their properties off the market under threat of massive fines. We already saw this happening with Spain's Housing Act of 2023 regarding long-term lets, which led to over 250,000 properties being pulled away from the market triggering a sharp spike in rental prices. As an example of this misguided housing policy, only in Barcelona, over 55,000 properties were removed as long-term rentals since the 2023 law. Now the government is repeating the same mistake but with tourist rentals, spreading a huge increase in rental prices, from long-term rentals over to short-term rentals. Honestly, you couldn't make it up. It's as if they were doing it on purpose to drive people off the edge. Actions have (dire) consequences, and politicians are playing with people's lives.

As published in our last blog (Spain’s new short-term rental registry explained) short-term rentals (and seasonal lets) MUST register with the new government short-term registry on or before the 1^st of July 2025 to avoid huge fines.

Failure to comply leads to massive fines.

As admonished in several articles, the Spanish government's number one priority has become housing and rentals, specifically targeting unlicenced tourism accommodations.

To avoid large regional fines, we strongly advise you attain a Tourism Licence and also a rental code. Depending on each region, as they are devolved competencies, if you do not register the fines are up to €500,000.

LNA offers a hassle-free service where we get you the new rental code (NRA) in 8 working days (you must already have a Tourism Licence). We offer holiday home landlords this service:

Apply for an NRA rental code (short-term lets/holiday homes)

Who needs to register?

• Tourist rentals (holiday homes)
• Seasonal lets

If you offer a property in Spain using property platforms which enable online bookings and payments (such as AirBnb, Booking, Vrbo, etc), you must register. Idealista is not one of them.

Excluded properties

• Long-term rentals (defined as 12 months plus)
• Properties offered through Idealista or similar sites (which do not accept online bookings and payments)

By what date do I need to have this unique rental code?

By the 1^st of July 2025.

Legal consequences of not registering your property

If you publish ads offering a holiday home, or a seasonal let, without using this new rental code, you will be subject to one, or more, of the following:

• Fines and sanctions. Depending on the regulation of each autonomous community, you can be slapped with a fine of up to €500,000.
• Your listings will be removed by platforms
• Suspension of your ability to legally rent online going forward

Drop us an email, or even better, give us a call, and one of our friendly staff will get the ball rolling, ensuring you are law-compliant and avoid large fines.

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specializing in taxation, and property conveyance. We also assist clients with immigration & residency visas, 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. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Lawyers has over 22 years' taxation & conveyancing experience at your service. We offer a wide range of over 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2025. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
21st of June 2025

Introduction

As published in several articles, the number one problem in Spain has become housing, specifically the affordability of new housing and rentals. The ongoing supply crunch has triggered an affordability crisis, which is gravely affecting the ability of native households to access new homes or affordable rentals in large Spanish cities.

To that end, the Spanish government pursues a lofty goal of trying to bring down rental prices across the board. In line with EU Regulation 2024/1028, it has passed a new law which requires all landlords that offer property as holiday homes, or seasonal lets, to register in a new short-term rental registry system devised to keep tabs on them. In Spanish we know it as Ventanilla Única Digital de Arrendamientos.

To cut to the chase, and in plain English, as of the 1^st of July you will be slapped a fine of up to €500,000 if you do not apply for this new rental code. This new rental code, unique to each property, should not be confused with a Tourism Licence (which you should already have attained by the way).

New rental code explained

Spain approved on the 23^rd of December Royal Decree 13212/2024, which came into force on the 2^nd of January 2025. This decree rules on the procedure to register holiday home properties. This new law will be in force as of the 1^st of July 2025.

It creates a new procedure of Ventanilla Única Digital de Arrendamientos or holiday home registration.

Who needs to register?

• Tourist rentals (holiday homes)
• Seasonal lets

If you offer a property in Spain using property platforms which enable online bookings and payments (such as AirBnb, Booking, Vrbo, etc), you must register. And before you ask, no Idealista is not one of them.

It does not matter if you offer a whole property or single rooms; you need to register either way.

Notwithstanding the above, if you do not use property online platforms, we still advise landlords to register, as currently it is a bit of a grey area, and you stand to avoid large fines. It’s best to err on the safe side of caution rather than face humongous fines.

Excluded properties

• Long-term rentals (defined as 12 months plus)
• Properties offered through Idealista or similar sites (which do not accept online bookings and payments)

By what date do I need to have this unique rental code?

By the 1^st of July 2025.

Legal consequences of not registering your property

If you publish ads offering a holiday home, or a seasonal let, without using this new rental code, you will be subject to one, or more, of the following:

• Fines and sanctions. Depending on the regulation of each autonomous community, you can be slapped with a fine of up to €500,000.
• Your listings will be removed by platforms
• Suspension of your ability to legally rent online going forward

How can LNA help you?

Our law firm offers a hassle-free registration service; we can apply for this unique rental code on your behalf whilst you sit back and relax using your Spanish digital certificate, or a specific power of attorney to act before the administration for a very competitive flat fee.

Avoid the infamous Spanish red tape! Within 8 to 10 working days, you will be awarded your new code eluding pesky fines and sanctions. You must use this code in all ads.

AT LNA we also offer tax services, which bring down your landlord tax bill by 70%, or more, if you are a EU non-resident landlord.

Conclusion

We strongly advise all landlords to refrain from offering properties as holiday homes or seasonal lets, unless you have first attained this new rental code. Some of the regional fines are truly eye-watering, and the government has made it clear it has an axe to grind with any landlord who dares flaunt its new star regulation - you have been warned!

Housing and rentals have become the Spanish government’s number one priority.

Drop us an email, or even better, give us a call, and one of our friendly staff will get the ball rolling, ensuring you are law-compliant.

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specializing in taxation, and property conveyance. We also assist clients with immigration & residency visas, 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. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Lawyers has over 22 years' taxation & conveyancing experience at your service. We offer a wide range of over 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2025. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
Friday 13th of June 2025

Introduction

I want to keep this article short and simple, leaving aside esoterics.

Last week, the Spanish government submitted to parliament a proposal for a draft bill of a 100% tax on non-EU buyers.

I will gloss over the draft bill to clarify its main points.

It should be noted that this draft bill introduces a slew of other major property-related tax changes I will not get into (such as a widespread VAT of 21% on tourist accommodations).

The main idea I want to convey today is that this is only a draft bill, subject to change. Meaning it may, or may not, be approved by Congress. And, even if approved, it could be tweaked, being significantly toned down. 

As already published in multiple articles, this draft bill has more to do with domestic politics (appeasing a disenfranchised electorate base and grabbing headlines) than providing meaningful solutions to a growing problem, which is the unbridled rise in house prices in Spain (caused by the Spanish government’s continued market intervention with its misguided housing policies).

Challenges to the new proposed law from a legal point of view

I do not fancy extending myself going down a rabbit hole on why this new law is not fit for purpose from a technical point of view. I will list in bullet points what I think are the main reasons. This draft bill faces both domestic and European challenges.

Notwithstanding the above, the law will be enacted (it would take over 6 months). Once approved, it would be challenged and likely repealed. But the damage would be done, both domestically and abroad, tarnishing Spain’s reputation.

1. National law

• Property Transfer Tax (ITPAJD) is a devolved tax competency to Spain’s autonomous regions. The government has no business in duplicating a tax which already exists and is legally earmarked for said regions.
• It is a generally accepted principle that pervades all Spanish law that taxes cannot be confiscatory (Article 31.1 of the Spanish Constitution). A tax which levies a 100% tax rate is punitive and blatantly confiscatory.

2. European law

• One of the basic principles that undergirds the Union is the free circulation of capital (Art. 63 TFEU). This must be understood in broad terms, not only between EU member countries, but also between the Union and third countries outside the Union. Imposing a 100% tax on non-EU buyers is a restriction on the free movement of capital, which undermines the Union as a whole.
• European Law sanctions fiscal discrimination. Again, this must be understood broadly, not only between EU member countries, but also between the Union and third countries outside the Union. Member countries are not at liberty to pass laws that discriminate against foreigners. As an example of this, the landmark ECJ ruling on inheritance tax, from the 3^rd of September 2014, which Spain lost on grounds of fiscal discrimination against foreigners.

Draft bills' main points

For ease of comprehension, I list in bullet points the main points:

• This is a new national tax and will apply in all of Spain (except the Basque Country and Navarre).
• It only affects resale property. New build properties (off-plan) would be exempt from this tax (as a different set of taxes applies to them).
• Taxpayers targeted are non-resident, non-EU property buyers.
• The tax levies a 100% tax rate. Meaning property prices will be DOUBLED.
• Regional transfer tax is deducted from the national tax to pay (as in effect it is the same tax the government is proposing to duplicate).

Example of the new tax for the region of Andalusia

In Andalusia, we have a flat tax rate of 7% transfer tax on resale properties.

Let's imagine Archibald, a non-resident British national, who wants to buy a €500,000 resale property to retire.

• Buyer pays €35,000 to the Junta de Andalucia (7% transfer tax).
• Under this new law, he would also need to pay the Agencia Tributaria (Spain’s Tax Office) an extra €465,000 in transfer tax.

Overall, Archibald stands to pay a total of €500,000 in transfer tax (to both Andalusia and the central government) plus the €500,000 asking price.

The proposed tax change means Archibald pays DOUBLE the asking price, that is €1,000,000!

Proposed ways to circumvent Spain’s new 100% transfer tax

• Buy new build property instead of resale.
• Attain Spanish residency before you buy resale property. Initial residency is fine, no need for permanent or long-term residency to benefit.
• Incorporate a Spanish holding company to acquire property (or buy an off-the-shelf company). As a Spanish company is resident, it allows you to override the new tax law.
• Buy resale property before the new law comes into force. It will take a minimum of 6 months before this law is approved, likely by early 2026.
• Buy resale property in the Basque Country or Navarre (the new tax law does not apply there).

In conclusion

Let’s take a deep dive into why this new smokescreen law solves nothing and adds new problems.

Non-EU buyers accounted for 3% of all property sales in Spain during 2023, following the official figures of the Notaries Association (which includes both new builds and resales). Even if this tax is passed into law, it will barely dent house prices in Spain. Moreover, as half of the properties that were bought were new builds - which are not affected by the new tax law - the impact is likely under 1.5% of all property sales. Hardly a drop in the ocean.

There is also the argument that foreigners, and in particular non-EU buyers, acquire property mainly on the Spanish coasts and islands, looking for sun-soaked beaches. Hardly any foreigners buy in Spanish major cities (such as Barcelona, Madrid, Malaga and Valencia) where the crux of the housing price problem is located. So, there is no demand overlap.

Another valid argument is that the type of properties, and especially the price range, that foreigners are interested in do not match those that natives usually go for. In other words, foreigners and Spaniards do not compete for the same type of properties, as the latter are normally priced out. Again, there is no demand overlap.

To close my line of arguments, the easiest way to circumvent this new tax law is to buy new build property, as I advise above. As explained in several other articles, there is a supply crunch with new build property in Spain, which has triggered an affordability crisis. In plain English, lots of buyers are chasing few new properties. This supply crunch translates into new build property prices soaring by two digits a year. If this new law is approved, it will make matters even worse, as in effect non-EU buyers will switch over from resale to new builds, further exacerbating and compounding the problem. Has the government thought about this? For crying out loud, it is only obvious that this new tax law will make matters worse, pushing new build prices to greater price heights.

This law, as we say in Spanish, is a “brindis al sol” or a toast to the sun. In other words, its impact on soaring house prices will be negligible, nada. Surely the government already knows this. It’s just a politically calculated headline-catching law to garner more votes on polling day, nothing more. All artifice, no substance.

However, it will adversely impact the thousands of businesses and jobs that dot the Spanish coastlines and are heavily reliant on foreigners and tourism to make a living.

Almost one-fifth of Spain’s GDP is from tourism (12% directly and a further 6% indirectly). Tourism is the goose that lays golden eggs. And guess who is the largest contingent of tourists? Yes, British. Also, guess who is the largest contingent of foreign property buyers? Yes, British again, by a long shot. Is it wise to poke the eyes of people who are actively contributing towards bringing wealth into Spain and are helping create well-paid jobs for locals? These are not property speculators, they are looking to retire and enjoy in their twilight years the life and mild weather Spain is renowned for. What’s wrong with that?

Let us not blame foreigners for this administration's own failings and shortcomings in the housing agenda. Misguided housing policies, over taxation, and unrelenting ideologically driven market interventionism are to blame for soaring house (and rental) prices in Spain, not foreigners. Get a grip.

Politicians should not play dice with a country’s best interests for the sake of a short-term political gain. This is what defines self-serving career politicians, who take decisions on the hoof based on short-term polls, as opposed to real statesmen, who are selfless and devise grand long-term strategies that benefit a country as a whole. Guess who history remembers.

Is Spain shooting itself in the foot by approving a tax law that solves nothing and makes matters worse for us all? Will this be yet another self-inflicted wound? I leave it to the reader to decide.

“Politics: the art of creating new problems where none existed.”

At LNA, our friendly team can assist you in buying (or selling) your property anywhere in Spain. We can also get you any visa in Spain. Give us a call.

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specialising in property conveyance and taxation all over Spain. We also assist clients with immigration & residency visas, 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. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Lawyers has over 22 years' taxation & conveyancing experience at your service. We offer a wide range of over 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2025. Plagiarism will be criminally prosecuted.

By Raymundo Larraín Nesbitt
1st May 2025

The Spanish government’s misguided housing policy has created a supply crunch on new build properties. This has triggered an affordability crisis whose consequences are yet to unfold.

This has caused new builds to soar in price by two digits a year, fuelling a new property bubble. In this case, it is justified because housing demand far outstrips supply by 500%. This shortage in new housing stock has led prices on new builds to skyrocket, leading to annual appreciations of two digits!

Spain builds under 100,000 new homes a year, when the real demand is well over 500,000. This stock shortage translates into a price hike with no signs of abating in the mid-run. As land takes many years to develop in Spain, we can expect the house price boom to continue unabated over the next 3 to 5 years.

This is creating serious problems for buyers, particularly amongst native households on precarious or low incomes, who cannot afford to access new property at these prices which far exceed Spanish wages.     

The government must revise and backtrack on its housing policy immediately to reverse a situation that is now spiralling out of control. Price bubbles are not good, and an overheated real estate market leads to dire financial and social problems as witnessed in 2008.

The Spanish government must take decisive action to cool down the prices on new builds by dramatically increasing the supply of housing stock.

It could achieve this by:

• allowing developers to build more properties by reducing the ludicrous admin red tape
• foster an ambitious nationwide construction program of state-subsidised property for those on low or precarious incomes (social housing or shareholders)
• approve audacious tax breaks for taxpayers with mortgage loans over extensive periods of time i.e. 20 years
• special tax breaks for first-time buyers (i.e. youngsters) as in other countries 
• public administrations, specifically local town halls, need to release their iron grip on land and liberalise it
• the government, and all regional administrations, must reduce the taxation on housing which severely impacts on the final asking price buyers pay. Public administrations must cease viewing and treating land as their own private piggy bank to finance themselves at the expense of property buyers

The above measures would raise the stock supply to match, or close the gap, with housing demand, dramatically bringing down house prices across the board.

Although concrete solutions to address the housing shortage are open to speculation, and indeed political debate, what is clear to my mind is that banning golden visas or approving a 100% tax on property purchases by non-residents is not the way forward, as builders will build even fewer homes, further exacerbating and compounding Spain's housing problem.

You do not address a housing supply crunch by raising taxes draconianly or by eliminating blue-ribbon visas; you do so by increasing the supply of housing units in the market. In plain English, more houses need to be built to accommodate the huge demand of 500,000 units, both domestic and foreign.

This rise in new build asking prices is not sustainable long term, and is already leading to future problems. Spanish borrowers are already moving into 30-year plus mortgage loans, which spells for disaster given the overvalued valuations of collateral. These mortgages will act as financial millstones around borrowers' necks, dragging them down, and tying them to a house which is not worth what they are paying for. 

This is a very concerning and pressing matter that can only be handled by decision-makers at the highest level. Resolute action is required without further delay.

It seems the Spanish government learnt nothing from the 2008 property collapse.

Source: ABC

EDIT 28-05-2025: The Bank of Spain officially acknowledged for the first time on the 27th of May 2025 that Spain is indeed undegoing a new property bubble. Source: Newspaper Vozpopuli.

At Larrain Nesbitt Abogados (LNA) we have over 22 years of experience specializing in taxation, and property conveyance. We also assist clients with immigration & residency visas 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. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. Voluntas omnia vincit.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2025© Raymundo Larraín Nesbitt. All Rights Reserved.

Marbella-based Larraín Nesbitt Lawyers has over 22 years' taxation & conveyancing experience at your service. We offer a wide range of over 60 legal and corporate services. Our team of native English-speaking lawyers and economists have a long track record successfully assisting expats all over Spain. You can review here our client’s testimonials.

Copyrighted © 2008 and 2025. Plagiarism will be criminally prosecuted.

21^st April 2025

Introduction

One possible way to acquire property in Spain is through a public auction. These properties that fall under a gavel are known in Spanish as ‘ejecuciones hipotecarias’, or bank repossessions in English.

Given how inflation remains unchecked post-Covid, central banks have steeply increased the price of money (interest rates) which in turn has translated into higher monthly repayments for millions of borrowers. Thousands of struggling borrowers have capitulated, and lenders have repossessed their property.

Bank repos are properties in which a borrower has fallen in arrears with his mortgage repayments and his lender (normally a bank) has taken back the property legally.

These properties are then sold on in public auctions for a fraction of their street value. For example, let’s say a reckless borrower by the name of Feliz Joseph fails to service his €500,000 mortgage loan. Once his lender repossesses his Mijas property, you can buy his home for under €200,000! Interested?

Although it may sound at first like a great option, there are in fact quite a few caveats that exceed the purpose of this blog post. The gist is that this option is better be left to professionals who know what they are doing and are prepared to accept steep financial losses. Bank repos are not everyone’s cup of tea and are not fit for laymen.

However, for those who are dauntless, the rewards far outstrip the risks. In effect, you are acquiring a property through a law court for half of its street value, or even less!

Given Spain’s ongoing property boom, which is now closing its fourth year, and how properties have appreciated by double digits in major cities and in selected coastal areas, bank repos offer a welcome respite to buyers and investors alike. Always an option to explore by savvy investors. You are strongly advised to retain legal counsel on following this option. Our law firm can assist you in these procedures if interested.

The six steps of a bank repossession

1. The borrower falls into arrears – The borrower fails to service his mortgage repayments. Delay interests (‘intereses de mora’) accrue to cover penalties. The lender contacts the borrower and first attempts an out-of-court settlement.
2. In technical default – Three months from the first arrear. After 3 months in arrears, a client’s file is passed onto the bank’s legal debt collection department which tries in a last-ditch effort to recover the debt. A lender will then initiate an Executive Procedure against the encumbered property.
3. Foreclosure and notary intervention – Depending on the chances of debt recovery, 15 to 20 days after the technical default. A letter by recorded delivery is sent by a Notary Public, with acknowledgement of receipt, informing a borrower that a repossession procedure is underway.
4. Repossession order – The court contacts the property owner to pencil a date for the trial. The judge formally notifies the borrower that his lender has instigated a repossession proceeding.
5. The court sets a date for the public auction – Normally between 6 to 12 months after initiating the Executive Procedure. The judge sets the date of the auction. The value for auction purposes cannot fall below 75% of the appraisal value. However, if no-one bids the gavel falls and a lender is legally entitled to seize the property for 60% of its appraisal value. Should there be a guarantor in the mortgage deed the bank will chase his assets first it is easier to seize them. The property will now be registered under the name of the new owner at the Land Registry (normally the lender).
6. Eviction – In the event the now ex-owner still dwells in the property, after a period that normally spans six months, police officers will arrive at his doorstep with a locksmith and a judicial bailiff to evict them by force, if necessary. The lender gains physical possession of the property, and the locks are changed.

At Larrain Nesbitt Abogados (LNA) we have over 21 years of experience specializing in immigration & residency visas. We also assist clients in buying, selling, or renting properties in Spain. You can contact us by e-mail at info@larrainnesbitt.com, by telephone at 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. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. Ní neart go cur le chéile. VOV.

Larraín Nesbitt Abogados, small on fees, BIG on service.
2008 and 2025 © Raymundo Larraín Nesbitt. All Rights Reserved.