Why Due Diligence Matters in Spain
Spain does not have a conveyancing system like the UK or Netherlands. There is no automatic chain of legal checks. The responsibility falls on you as the buyer. Skipping due diligence is the single most expensive mistake foreign buyers make. Here is exactly what needs to be checked and why.
The Nota Simple: Your Starting Point
The Nota Simple is an extract from the Land Registry (Registro de la Propiedad). It costs about 10 EUR and is available online or in person. It tells you:
- Who the legal owner is (and whether they match the seller)
- The property's registered size and description
- Any mortgages or charges (cargas) on the property
- Any legal claims or embargoes
Always request a fresh Nota Simple, never accept one the seller provides. It could be outdated. Your lawyer should request this within 24 hours of you signing the reservation.
Catastral Reference Check
The Catastro is Spain's land survey office. The catastral reference confirms the property's physical boundaries, built area, and plot size. Compare this with what the Nota Simple says. Discrepancies between the two are common and can indicate illegal construction, boundary disputes, or administrative errors that need resolving before purchase.
Urban Planning Compliance (PGOU)
Your lawyer should check the local town hall (ayuntamiento) to confirm:
- The property has a valid building licence (licencia de obra)
- There are no open enforcement proceedings
- The property complies with the local urban plan (Plan General de Ordenacion Urbana)
- There are no planned infrastructure projects (roads, railways) that could affect the property
This is especially important for rural properties, where illegal building is historically common in regions like Andalucia.
Debt Checks
In Spain, certain debts attach to the property, not the owner. If you buy a property with unpaid debts, you inherit them. Your lawyer must verify:
- IBI (property tax): Request receipts for the last 4 years
- Community fees: Get a certificate from the community administrator confirming no outstanding debts
- Utility bills: Outstanding water and electricity bills can become your problem
- Basura (waste tax): Often overlooked but can accumulate
First Occupancy Licence (Licencia de Primera Ocupacion)
This confirms the property was built according to its building licence and is habitable. Without it, you may have trouble connecting utilities or getting a mortgage. For older properties (pre-1990), this licence may never have been issued. Your lawyer should check whether a substitute declaration (declaracion responsable) is available.
Energy Performance Certificate
Required by law since 2013 for all property sales. The seller must provide an EPC rating (A to G). If they do not have one, they need to get one before the sale. Cost: 100-200 EUR. This is the seller's responsibility, not yours.
Technical Building Inspection (ITE)
Buildings over 50 years old in most Spanish municipalities must pass a technical inspection. Check whether the building has a valid ITE certificate. If not, and the building fails its inspection, you could face expensive communal repair costs.
What Due Diligence Costs
A thorough legal review by an independent lawyer costs 1-1.5% of the purchase price, typically 1,500-4,000 EUR for a standard apartment. This is the best money you will spend. Use our free calculator to estimate your total costs including legal fees.
Red Flags to Walk Away From
- Seller cannot produce a Nota Simple or delays providing it
- Property size on paper does not match reality (possible illegal extension)
- No first occupancy licence and no path to obtaining one
- Outstanding community debts exceeding 6 months
- Property located on protected rural land (suelo no urbanizable)
Due diligence protects you from inheriting someone else's problems. Never skip it, no matter how attractive the deal seems.