Signing a Property Purchase Before a Notary in Spain: A Practical Guide from Sotogrande

Signing a property purchase in Spain before a notary is the moment when the transaction is formalised through a public deed. This moment normally coincides with the payment of the price, the handover of possession, and the transfer of the keys. It is a very important step, but it is neither the first one, nor does it mark the end of the purchase process.

Before reaching the notary’s office, many matters must have already been reviewed, such as the ownership of the property, any registered charges, the buyers’ matrimonial economic regime, the community status the property is part of, the property tax (IBI), the means of payment, the origin of the funds, and the taxation applicable to the transaction.

After signing, several formalities will still need to be completed: filing and settling the taxes, registering the deed at the Land Registry, changing the ownership of utilities, and notifying the transfer to the owners’ community and other entities related to the property.

This guide covers situations we regularly see in purchase transactions managed by Open Frontiers in Sotogrande, including purchases by international buyers, purchases through companies, bank financing, and cross-border transfers.

Before the notary

Personal and corporate documentation must be prepared, the matrimonial regime confirmed, the draft deed reviewed, charges checked, payments organised, and taxes correctly determined.

During the signing

The notary identifies the parties, verifies they have sufficient legal capacity, explains the content of the deed, and records the price, the means of payment, any charges, the handover, and the other conditions of the sale.

After the notary

Taxes are filed and paid, registration at the Land Registry is processed, the registered deed is received, and ownership of utilities, IBI, insurance, and community fees is changed.

Before preparing the deed, it must be perfectly clear who the buyer will be and in what capacity they are acquiring the property. A property can be purchased in various ways:

• In an individual’s own name
• By two or more people jointly
• By a married person under a specific matrimonial economic regime
• Through a Spanish company
• Through a foreign company
• Through another legally recognised structure

This affects matters such as ownership, financing, taxation, use of the property, succession, or the conditions of a future sale. Any change of the buyer named in the contract constitutes a contractual amendment, and therefore requires the seller’s consent and a fresh tax analysis. It should not be assumed that the buyer’s name can be freely changed at the last moment.

For a general explanation of the documentation and stages of a purchase, you can consult our guide on buying directly or through a real estate agency in Sotogrande.

The exact documentation depends on each transaction, but an individual buyer should have at least the following ready:

• Original, valid passport or national identity document, and their foreigner identity number (NIE), if they are a foreign national
• Complete information on their marital status and matrimonial economic regime, including a marriage settlement or contract, if any exists
• If another person is signing on their behalf, the corresponding power of attorney
• Proof of payments already made
• Bank cheques or documentation for the transfer of the outstanding amount
• Where financing is involved, the corresponding mortgage documentation
• Information and evidence regarding the origin of the funds
• Details of the bank account used in the transaction
• A Spanish account to set up direct debits for certain future expenses, where applicable
• Energy performance certificate (CEE)
• Certificate confirming that community fees and property tax (IBI) are up to date

The identity document must match the details included in the private contract and the draft deed; any discrepancy or error must be corrected before signing.

One of the issues that commonly delays international transactions is the lack of documentation regarding the matrimonial economic regime.

In a property purchase in Spain, it is not enough to state that a person is married. The applicable law can vary depending on factors such as the spouses’ nationality, their habitual residence, the date and place of marriage, a possible choice of law, and the existence of a marriage settlement, so it is necessary to determine:

• Which law governs the marriage
• Which matrimonial economic regime applies
• Whether a marriage settlement exists
• Whether separation of property was agreed
• Whether a community of property or an equivalent regime exists
• Whether the money used for the purchase is separate or joint property
• What involvement the spouse may need to have when buying or selling

What Marriage-Related Documentation May Be Requested?

Where a foreign marriage settlement or contract exists, the notary or land registrar may request:

• An authenticated copy of the document
• An Apostille of The Hague, where applicable (or diplomatic or consular legalisation, where the Apostille does not apply)
• A sworn Spanish translation
• Certification from the relevant civil or marriage registry
• Evidence of the content and validity of the foreign law

Foreign documentation must be sent to the lawyer and the notary’s office well in advance. Arriving on signing day with a marriage settlement that has not been legalised or translated can prevent the transaction from being formalised.

Can a Married Person Buy Alone?

In many cases, yes, but the fact that a person can appear individually as the buyer does not mean that the property is separate property. A person may be registered as the sole legal owner and still need their spouse’s consent for a subsequent sale, particularly where the property constitutes the family’s habitual residence.

It is very important to clarify this situation at the time of purchase, and to properly assess matters such as the applicable matrimonial regime, the origin of the funds, the intended use of the property, or the law governing the marriage, in order to avoid problems in the future.

Buying in your own name is usually the simplest structure when the property is intended for the buyer’s private use, but buying through a company can make sense in different situations, for example:

• If the property will be used for an economic activity
• If it will be commercially exploited
• If it will form part of a business portfolio
• If it will be acquired jointly with other investors
• If it responds to a specific corporate or succession structure

A common mistake in this type of transaction is assuming that buying through a company is cheaper, particularly regarding taxes. The transaction may, however, generate obligations related to Value Added Tax (IVA), Corporate Tax, accounting matters, depreciation, or related-party transactions. It can also carry recurring tax filing obligations, or generate tax liabilities on a future sale.

The structure of the purchase must be considered not only at the moment of the transaction itself, but also over the years of ownership and a possible future sale. Saving tax when buying does not always produce the best long-term tax outcome.

The applicable tax does not depend exclusively on whether the buyer is an individual or a company. The following must be taken into account:

• The nature of the property
• Whether it is a first or subsequent transfer
• The seller’s status
• Whether the parties act as businesses or professionals
• The use the buyer will give to the property
• The buyer’s right to deduct IVA

Second-hand purchase from an individual

When an individual sells a second-hand home, the transaction is normally subject to Transfer Tax (ITP).

It is the buyer who files and pays the ITP, while the seller does not charge IVA. The applicable rate depends on the autonomous region and the circumstances of the purchase.

In Andalusia specifically, the rate in force on the date of the transaction should always be checked, along with the possible application of reduced rates. The current rate is 7% of the price.

Purchase of a new home from a developer

The first transfer of a home carried out by a developer is normally subject to IVA and the Stamp Duty tax (AJD). The applicable IVA rate depends on the type of property and the legal circumstances.

A new home does not necessarily receive the same treatment as a commercial premises, an office, a garage space acquired separately, or a plot of land. In the case of a home, 10% IVA applies, even where the buyer is a private individual, while in the case of land, 21% applies.

Subsequent transfer carried out by a business

A second or subsequent transfer of a building carried out by a business is, as a general rule, exempt from IVA and subject to ITP. In certain cases, however, the seller may waive the IVA exemption.

This means the seller legally waives the exemption, and the transaction becomes subject to IVA, because it can be more tax-efficient for the transaction to be taxed under IVA rather than ITP. ITP normally constitutes a final tax cost for the buyer, whereas IVA can be deductible in full or in part. The waiver can also be relevant for the seller if the property is still within the adjustment period for IVA deductions applied on its acquisition or construction.

For this to be possible, certain legal requirements must be met, including the buyer’s business status and the rules regarding their right to deduct the tax. (We cover the IVA exemption waiver and its long-term tax implications in more depth in a dedicated article on this topic.)

Another common source of confusion in purchase transactions is using the terms “purchase price”, “cadastral value”, “reference value”, “bank valuation”, and “market value” interchangeably.

Cadastral value and reference value

The cadastral value is used, among other purposes, to calculate the property tax (IBI). The Land Registry’s reference value, on the other hand, is a different figure and can be used to determine the tax base for ITP and for Inheritance and Gift Tax. In a purchase subject to ITP, the tax base will generally be the higher of these two amounts:

• The reference value
• The price or consideration paid

To understand why cadastral values tend to lag behind the market and what their revisions reflect, you can consult our analysis of rising cadastral values in Sotogrande.

What Happens if the Reference Value Is Higher Than the Price?

When the reference value exceeds the purchase price, the buyer must initially file the tax using the reference value as the minimum base. A correction can subsequently be requested, or the valuation challenged, by providing evidence that it does not adequately reflect the condition or circumstances of the property. Relevant evidence for this purpose can include photographs or technical documentation, such as an expert report noting construction defects or legal circumstances that reduce this value.

If the reference value is lower than the purchase price, on the other hand, this may indicate that an attractive purchase has been negotiated, although it could also be due to pending renovations, defects, the seller’s urgency, or specific limitations.

Where a property has been acquired for a price well below its tax and market value, this can be a sign that the buyer has made a good deal, but the difference must be properly analysed and documented.

What Happens if the Bank Valuation Is Much Higher Than the Purchase Price?

A bank valuation higher than the purchase price does not automatically replace the reference value, nor does it by itself become the ITP tax base. For example, in a case with the following figures:

• Purchase price: €1,000,000
• Reference value: €900,000
• Bank valuation: €1,400,000

In principle, the ordinary tax base here would be €1,000,000, because it is higher than the reference value. The existence of a €1,400,000 valuation does not automatically raise the tax base to that figure, but this valuation can become a relevant piece of evidence in a tax audit, particularly when the declared value appears abnormally low, when no reference value exists, or where there is any kind of doubt about the actual consideration being provided.

In short: a very wide gap between the price and the valuation of a property should be thoroughly analysed and documented, since this information can be extremely useful in the future. For example: if the Tax Agency opens an audit based on information that does not correctly reflect the transaction, the buyer can submit arguments and provide evidence. It is always possible to challenge a valuation considered incorrect, but this must be done within the deadlines and through the correct procedure.

The notary does not replace the buyer’s lawyer, nor do they carry out a physical inspection of the property. Their role, among many others, is to identify the parties appearing, verify their legal capacity, control the formal legality of the deed, explain its content, and record the parties’ consent.

The deed usually records all essential information, including:

• The identity and legal capacity of both buyers and sellers
• Their marital status and matrimonial regime
• A land-registry description of the property
• Its cadastral reference
• The seller’s title of ownership
• Any registered charges, if applicable
• The price, deducting any amounts already paid before signing, such as a reservation deposit
• The form and means of payment
• Tax withholdings, where applicable

This is only part of the information contained in the deed, which is why it is worth reviewing the draft carefully with your lawyer before attending the signing at the notary’s office.

Spanish deeds contain legal expressions that may seem routine, but carry important consequences. Some examples:

“Sold as a fixed body” (“cuerpo cierto”)

Buying a property “as a fixed body” means the property is transferred as an identified physical and legal unit, rather than as a sale where the price has been strictly calculated per square metre. This is particularly relevant when there is a difference between the actual built and usable surface areas, or between the metres recorded at the Land Registry and those shown at the Cadastre.

The expression can limit certain claims based purely on differences in surface area where the buyer is presumed to know and accept the property as a specific unit. However, “fixed body” does not mean the seller is protected against any claim. It does not automatically eliminate actions related to fraud or deceit, breach of contract, undeclared charges, hidden defects, or any other information deliberately concealed.

“Free of charges and encumbrances”

This phrase means literally that the property is transferred without debts, mortgages, seizures, or other third-party rights affecting it, except those the buyer expressly accepts.

The statement must match the land-registry information and the structure agreed for the transaction. A property can be sold with a mortgage that is financially cancelled on the same day. In that case, the deed must explain how part of the price is retained or applied to cancel the debt, and how the registry cancellation will be processed, but paying off the loan does not by itself remove the mortgage from the Land Registry. Financial cancellation and registry cancellation are two different steps.

“Free of tenants and occupants”

It must be confirmed that the property is handed over without tenants, occupants, users, or contracts that could limit the buyer’s immediate possession.

“Up to date with payments”

This usually refers to amounts owed to the owners’ community, conservation entities, IBI, municipal fees, special levies, utility bills, or urbanisation fees.

The relevant certificates and evidence must be provided; legally, a general statement will not be enough.

As already noted, before the sale, the seller must provide the certificate confirming whether they are up to date with the owners’ community.

In Sotogrande there may also be documentation relating to more area-specific matters, such as the building or residential complex’s ordinary community, the urbanisation’s conservation entity, general urbanisation fees, approved special levies, pending community works, contractually linked private clubs or services, or specific community rules.

The buyer needs to know not only whether an outstanding debt exists, but also whether any expenses have been approved that have not yet been issued or paid. This is why it is crucial for the deed or the preliminary contract to clearly state who takes on the special levies approved before signing, and who bears the cost of any levied afterward.

IBI legally accrues on 1 January of each year with the local council, although the buyer and seller can agree on a proportional cost-sharing arrangement.

In many transactions, the seller provides the last paid IBI receipt, along with the cadastral reference, any necessary municipal information, and evidence of other local fees. The contract and the deed must clarify whether the IBI for the year of sale is prorated between the parties, or whether one of them takes on this cost individually.

Municipal capital gains tax (plusvalía) should also be checked; it is always the seller’s responsibility, without prejudice to the specific tax features of each transaction.

The deed must clearly state how the price will be paid. This can, for example, be a transfer made before or after signing (within an agreed period), a deposit paid with the private contract, or a bank cheque.

At this stage, applicable withholdings must be reviewed, such as the 3% withholding where the seller is not a Spanish tax resident, or those needed to cancel any mortgages.

A cheque should never be handed over without first checking that the beneficiary and the amount are correct and match the information recorded in the deed. But the checks do not end there.

An order entered into a banking app does not always equate to funds irrevocably received. The seller can require confirmation that the money has been paid, or that the transfer is irrevocable.

In a normal transaction, ownership is transferred through the sale agreement and the handover. Unless otherwise agreed in the contract, the public deed is generally treated in law as equivalent to the handover of the property.

In practice, once the deed is signed, the price paid as agreed, and the keys handed over, the buyer acquires ownership and possession of the property under the terms recorded in the deed.

However, the registration of the property and its new owner at the Land Registry should not be overlooked, as it is essential to reinforce the buyer’s protection against third parties. It is therefore a dangerous simplification to say “once you get the keys, the house is yours.”

Can the Buyer Move In Immediately?

Normally, yes, when the deed states that possession is handed over at the same act and the price has been paid, but the contract can always agree on different situations. The property might be rented out, delivery of possession might be postponed for any reason, or the keys might even be withheld until the buyer fulfils some agreed condition.

There are many possibilities, but the key point is that any exception to the general rule must be recorded in writing. Allowing the seller to keep occupying the property without a precise agreement can create problems related to insurance, liability, utilities, and recovering possession.

Yes. Signing the deed does not automatically eliminate all possible claims, but it is not the notary’s job to worry about specific matters such as whether the pool works correctly or whether all installations are in good condition.

Whether any claim is viable will depend on its cause, on whether it is recorded in the contract and the deed, on the available evidence, and on the legal time limits. There could, for example, be actions related to breach of contract, concealed information, breach of warranties, or fraud or deceit.

For that reason, before signing, it is advisable to carry out proper technical inspection and an in-depth legal review, including planning checks, an inventory of furniture, meter readings, and any photographs that may be needed.

Different bodies can be involved in a purchase, often referred to generically as “Hacienda” (the tax authorities), among them the Andalusian Tax Agency (which handles ITP and AJD), the State Tax Administration Agency (which handles IVA, non-resident withholdings, and other state taxes), or the local council (which handles IBI and municipal capital gains tax).

After signing, the relevant tax authority receives the self-assessment and the tax payment. It can check the tax base used, the applicable tax rate, the reference value, the right to deduct IVA, or whether the declared price matches the actual consideration.

The tax authorities do not on their own determine who is the civil owner of the property. That ownership derives from the legal transaction, the handover, and the protection provided by land-registry registration.

The Land Registry is the public institution that provides legal publicity for the ownership and property rights affecting real estate. The Registry can record details such as ownership, the land-registry description, mortgages, seizures, easements and usufructs, resolutory conditions, or restrictions on disposal.

The Land Registry is not the same as the Cadastre: the Registry focuses on ownership and legal rights, while the Cadastre is an administrative register that is mainly descriptive and tax-related in nature. Both may record different surface areas or descriptions, and any discrepancy must be clarified before signing.

1. Electronic filing

The notary’s office can send an authorised electronic copy of the deed to the Land Registry immediately after signing. This filing generates a number known as an “entry receipt”, which temporarily reserves the document’s priority over other incompatible titles that might subsequently be filed. This way, the buyer secures the priority of their documents at the registry.

2. Tax settlement

Before registration can be completed, the filing must be evidenced and, where applicable, the payment or exemption of taxes.

3. Registrar’s review

The land registrar reviews whether the document meets legal requirements and can be registered. After the checks, the registrar can:

• Register the deed
• Request a correction
• Suspend registration due to a correctable defect
• Or reject it due to a defect that prevents registration

A required correction does not necessarily mean the purchase is invalid. It could be a pending document, a formal discrepancy, or a clarification that the notary’s office, the lawyer, or one of the parties needs to provide.

4. Final registration

Once registered, the buyer appears as the registered owner.

5. Delivery of the registered deed

The buyer receives the authorised copy with the registration details, usually together with the final settlement of the funds provision.

Is It Mandatory to Register the Purchase?

Registering an ordinary purchase is not, by itself, what creates ownership, but failing to register it means giving up an essential part of the protection offered by the Spanish property system.

Registration makes ownership public, offers protection against certain third-party rights, and evidences the chain of title. It is, generally, a major reinforcement of legal certainty for both buyer and seller.

In practice, a purchase should be filed and registered as soon as possible.

The process can be handled by anyone with the capacity to do so, including the buyer themselves, individually. In international or complex transactions, however, it is generally not advisable for the buyer to personally handle the settlement and registration, and a lawyer or a gestoría usually gets involved.

Where mortgage financing is involved, the bank usually requires its own gestoría to coordinate the registration of both the purchase and the mortgage, in order to protect the registered priority of its security.

The funds provision is an amount the buyer pays in advance to cover payments and expenses that cannot yet be calculated with complete precision at the time of signing. It can include ITP or AJD, land-registry fees, the cost of notarial copies and gestoría services, and any administrative fees or disbursements that may be required. It is not a definitive additional cost, nor is it an open-ended fee.

Whoever receives the provision must use it for the relevant items and present a settlement once the entire process is complete, together with the corresponding receipts. If money is left over, it must be returned. If money is missing, the difference will be requested.

It is prudent for the buyer, during the purchase process, to request an estimated breakdown of these costs, as well as identification of who will hold the funds.

As we have seen, signing and registering the purchase are crucial steps in this procedure, but they do not automatically change every contract related to the property. This means that, after the purchase, ownership changes must be arranged for electricity, water, gas, internet, alarm systems, insurance, direct debits, or waste-collection fees, among many others.

Wherever possible, it is preferable to change ownership of contracts rather than cancel utilities, as cancellation can lead to unexpected costs, inspections, or delays when reactivating them.

What do I need to bring to the notary to buy a home in Spain?

At a minimum, the buyer should bring their original identity document, their NIE where applicable, the relevant marriage documentation, proof of payments made, and the agreed means for paying the outstanding price. Companies and foreign buyers may need additional documentation, which will vary case by case.

When are the keys handed over?

Normally, immediately after signing and completing payment. Any delayed handover must be expressly set out in the deed or in a separate agreement.

Am I the owner before the deed is registered?

The sale and documented handover can transfer ownership before registration. However, registering the acquisition is essential to obtain the crucial protection that registration provides against third parties.

How long does the Land Registry take to register a purchase?

The time depends on the specific registry, on the tax settlement, and on whether any defect needs correcting, but in general the full process can take several weeks.

Is ITP paid on the cadastral value?

Not exactly. For ITP, the price, the declared value, and the reference value are generally compared. The cadastral value used for IBI is a different concept.

Can the tax authorities charge tax based on a higher bank valuation?

Not automatically. The valuation can be used as evidence in certain procedures, but the ordinary ITP tax base is not automatically replaced by the amount of a bank valuation.

What does buying “as a fixed body” mean?

It means acquiring the property as a specific, identified unit, not calculating the price strictly per square metre. This does not authorise the seller to conceal defects, charges, or essential information.

Can defects be claimed after signing?

Yes, where there is a legal basis, such as breach of contract, fraud, hidden defects, or undeclared charges. Each claim must be assessed individually and within its legal time limits.

Who pays and files the taxes?

The buyer is normally responsible for the acquisition tax, although filing is usually handled by their lawyer, a gestoría, the bank, or the notary’s office.

What is the difference between the Registry and the Cadastre?

The Land Registry publishes ownership and legal rights over the property. The Cadastre is an administrative and tax register that physically describes the property and assigns it certain values.

The signing before a notary should be the confirmation that all the previous work has been done correctly, not the moment when problems with documentation, taxes, the matrimonial regime, or payments come to light.

At Open Frontiers, we routinely coordinate the commercial process with buyers, sellers, lawyers, banks, notaries, and the other professionals involved in a transaction. Our role does not replace independent legal or tax advice, but it does help ensure each party has the information they need, and that the practical steps are in place before signing.

We also explain, in our guide on buying directly or through a real estate agency in Sotogrande, how a local agency can help coordinate the process and identify practical issues before they turn into delays.

To speak with our team about buying a property in Sotogrande, you can contact Open Frontiers Real Estate.

Luis de Pedro is a lawyer specialising in real estate law. He spent over 30 years as Head of the Legal Department and Legal Advisory at Sotogrande, S.A., taking part in the company’s evolution from the era of its founding families, McMicking and Zóbel, through to its later acquisitions by NH Hoteles (Cofir), Cerberus, and Orion.

His professional experience includes residential and corporate purchase transactions, real estate contracting, due diligence processes, corporate structures linked to real estate assets, and advising national and international buyers and investors.

GP Abogados

Legal notice: This article is provided for informational purposes only and does not constitute legal, tax, or accounting advice. The treatment of each transaction depends on its specific circumstances, the status of the parties, the intended use of the property, and the regulations in force at the time of the transaction. Independent professional advice should be obtained before making any decision or signing any document.