In order to register the purchase of a property with the Spanish Land Registry, the purchase agreement must be executed before a Spanish notary. This can either be done by having an existing private purchase agreement notarised in the presence of both parties, or by having the purchase agreement drafted directly as a notarial deed of sale (escritura pública de compraventa).

Differences Compared to a Private Purchase Agreement

Before a notary can execute a deed of sale, Spanish law requires the notary to document all payments exceeding €10,000. If the transaction is completed solely by means of a private purchase agreement, this may give rise to practical and legal difficulties.

Another disadvantage of a private purchase agreement is that, in the event of a dispute, it does not provide conclusive evidence of the signing date or the identity of the signatories. If one party later denies having signed the agreement or disputes the date of execution, it is often necessary to obtain an expensive forensic handwriting expert's report, which may still fail to provide a definitive conclusion. By contrast, when the purchase agreement is executed before a notary from the outset, all parties must identify themselves. The notary officially certifies both the identity and the legal capacity of the signatories.

Proof of Payment

To prevent sham transactions and combat money laundering, Spanish notaries are legally required to document all transactions exceeding €10,000. If deposits have already been paid when signing the preliminary agreement, these can normally be evidenced by presenting the corresponding bank payment confirmations.

The remaining balance of the purchase price is still commonly paid by means of a banker's cheque (cheque bancario). The buyer's bank issues a cheque payable to the seller, which is handed over before the notary. The notary attaches a copy of the cheque to the notarial deed in order to document the payment. Although it is not yet the standard practice everywhere in Spain, payment by bank transfer is, of course, also possible.

Unlike in Germany, Spanish notaries do not normally act as escrow agents. In the past, this role was frequently assumed by the lawyers involved in the transaction. However, due to stricter anti-money laundering regulations and several incidents involving law firms, direct payment between buyer and seller is now generally the preferred and recommended approach.

Bilingual Contracts and Sworn Translators

Many foreign buyers do not have sufficient knowledge of Spanish to fully understand a purchase agreement drafted exclusively in Spanish. As the notarial deed must always be executed in Spanish, there are generally two ways to complete the transaction when the parties speak different languages:

A) Bilingual Notaries

If the Spanish notary is fluent in German or English in addition to Spanish, you may either sign a bilingual version of the deed or have the notary explain the contents directly in your language.

The disadvantage is that bilingual notaries are mainly found in Spain's coastal regions and are often unavailable elsewhere, which may result in higher costs.

B) Sworn Translators or Interpreters

The most common solution is to appoint a translator or interpreter to accompany you to the notary's office and translate both the contents of the deed and the notary's explanations into your native language. Although the interpreter is not legally required to be a sworn translator, it is strongly recommended that they either hold an officially recognised translation qualification or are a bilingual legal professional, such as a lawyer or authorised legal representative. It is also advisable to review the purchase agreement in advance so that any questions can be clarified before the signing appointment.

 

The Notarial Signing Process

When buying property in Spain, it is generally advisable to rely on your lawyer when selecting a notary. If your lawyer has not coordinated the draft deed with the notary in advance, the signing appointment may take considerably longer despite having been scheduled beforehand.

Once the notary's staff have made copies of your passport or identity card and your NIE certificate, they will usually ask for your address, marital status and, where applicable, your matrimonial property regime. It is essential not only to state the correct matrimonial property regime but also to inform the notary whether you have entered into a prenuptial or marital property agreement.

In Spain, the following matrimonial property regimes are commonly recognised:

- Sociedad de gananciales: Community of accrued gains

- Separación de bienes: Separation of property

- Comunidad de bienes: Joint ownership of property

Once all missing information has been incorporated into the deed, all parties proceed to the notary's office. The notary begins by verifying the identity of each participant, comparing the original identity documents with the copies attached to the deed. After confirming everyone's identity, the notary reads the key provisions of the deed aloud and, where appropriate, provides information regarding the taxes payable on the transaction. If an interpreter is present, they will translate both the notarial deed beforehand and the notary's oral explanations during the signing.

After the deed has been read, it is signed by all parties and, where applicable, the banker's cheque is handed over. In most cases, the notarial fees can be paid immediately by cash or credit card, and you will receive an authorised copy of the deed on the spot. This copy is generally sufficient to transfer utility contracts such as electricity and water into your name.

Depending on the notary, the original deed may take up to one week to be issued. You, your lawyer or your authorised representative (apoderado) will be notified as soon as it is ready for collection. Once the original deed has been obtained, it must be stamped following payment of the applicable taxes.

Our law and tax firm will be pleased to assist you in analysing your individual situation, completing the necessary administrative procedures, and preparing and filing the relevant Spanish tax returns. If you have any questions or require legal assistance regarding the purchase of property in Spain, please do not hesitate to contact us by email or telephone.

Author:

María Santos
Lawyer
CEO, Partner, Legal Director
info@sspartners.es
Tel: (+34) 951 12 13 06
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