1.1). Each plot of land containing your chosen property has its own characteristics, in relation to its physical location within the total land area delineated a town or city (municipality), which defines it from a municipal zoning point of view. This means that the ultimate use of the land is predetermined (e.g. building with x stories, single- family home with a maximum number of two stories, green area, road, ecosystem, reservation, maritime zone excluding building, etc.). Therefore, a first step would be to investigate what is the municipal zoning of the land one has chosen, this can be undertaken at the local Town Hall. Obviously if one purchases, for example, a 4th floor resale, in a building located in an urban center, which was built many years ago, the investigation regarding municipal legality would most likely be superfluous, as it would be practically impossible that such real estate property would exist unofficially, or that it is violating the municipal zoning laws. But in this case, it would be advisable to investigate the planned use of the area such as future surrounding developments.

If the plot of land has a property under construction or recently built, and generally with new developments, as well as with rustic land or land with a low building density, it is essential to get information about its municipal zoning in order to determine whether or not the planned use for such property is compatible with the purchaser´s plans.

1.2). A separate consideration should be taken with regard to the land adjacent to the seashore. Additionally, with regard to these types of properties, one should consult with another official body i.e. Demarcación de Costas (Coastal Authorities) whose offices are located in the provincial capital, as it controls panning permission for coastal zones Meanwhile, the planning information provided by the Town Hall will inform the purchaser whether or not the plot in question is located in such as zone. An advisable additional step that should be taken is to obtain a report from the Demarcación de Costas, to protect the purchaser in who in the case of dispute between the two authorities, would find the Coastal Authorities' decision rules.

2.1). In Spain there is a registry, known as Registro de la Propiedad, which records the rights and obligations affecting each and every piece of real estate property in the Country. This means that all the significant information related to the ownership and burdens of a real estate property is chronologically and permanently registered in a database. This is a meticulous system offering absolute protection to whoever needs to validate such rights before a third party, and offers exact and irrefutable security to the purchaser/owner. And such is the case since, although there is public access to this database, only certain technically qualified people, known as Registradores de la Propiedad, may amend the contents of the database using documents and records of unquestionable authenticity.

2.2.). The simplest, fundamental right related to a real estate property, recorded in the Property Registry, is the actual ownership of such property. That is why the first fact that stands out when one consults the Registry, is the identity of the owner of the property in which one is interested. However, in Spain, like in any other country, there are circumstances that could modify, condition, restrict, etc. the rights an individual may have, including the one of real estate property ownership. For example, one could think of a mortgage in favor of a bank, or a right of way, or an embargo declaration in favor of the Tax Authorities, etc.. All these circumstances are stated in the Registry, but the analysis and interpretation of this information could be quite complicated to someone not versed in the matter. This is why it is advisable, even more so in the case of a foreign investor who is not too used to this system, to let a lawyer handle this type of verification.

3.1.). Once a suitable property is found and the above mentioned verification has been undertaken, the property must be purchased from its rightful owner by means of a purchase agreement. Such purchase agreement must be a document signed both by the buyer and the seller before a notary public, and it is called an escritura de compraventa or public conveyance deed. It is precisely to this document that the law grants the characteristics of authenticity previously mentioned and, once signed by the seller, the purchaser and the notary (in a simultaneous act) is entered in the Property Registry. Once completed, the ownership (or purchase) is unquestionable and the position as new owners of the real estate property is irrefutable.

3.2.). Nevertheless, it is common practice to take some preparatory steps, prior to the Public Conveyance Deed, such as paying deposits in order to reserve the property, etc., initially signing only private contracts between seller and buyer, the preparation of which should be left in the hands of a trusted lawyer. These contracts, which logically would oblige the parties, generally have the purpose of starting the purchase process eventually culminating in the previously mentioned Public Conveyance Deed and its subsequent registration. In order to sign these contracts, as well as to sign the Public Conveyance Deed, it is possible to be represented by attorneys, to whom notarial power of attorney has been granted (a power of attorney signed before a Spanish notary public is just as valid as one signed before a Spanish Consul or Ambassador in any country, or even the one signed before any notary public in any country other than Spain).

4.1.). With the private contract, in cases where there is such a document, or with the public conveyance deed, it is important to control all the various points. Once again, it is convenient to leave this job in the hands of an expert.

4.2.). The following are some important matters to consider in order for the foreign investor to be well informed :

In Spain, the seller frequently proposes the possibility of officially declaring a price which is lower than the real one. In this manner, some sellers try to lower their capital gains tax, since is based on the difference between the amount originally paid by the seller at the time he/she purchased the property and the amount received on the current sale. However, it is easy to understand that not only is there the normal risk of violating a Tax Law, but also if one eventually decides to sell such property, one would find that since the declared purchased price was too low, the taxes to be paid for capital gains would be higher. Furthermore, an additional concern would be that when the Tax Authorities review the value given to the real estate property purchased, if they detect a substantial difference between what is declared as the price and the approximated market value of the property, one could suffer additional tax claims as well as more severe economic sanctions.

4.3.). It is important to pay special attention to the section of burdens: Meaning the burdens, loans and mortgages affecting the property in question. All contracts or deeds must mention that the property is sold free of burdens and encumbrances and free of occupants or tenants of any kind. Omitting this section could bring most unpleasant consequences to a buyer, if once the purchase transaction is completed, the buyer discovers that the property is burdened and the seller is no longer responsible. In cases where the real estate property is purchased with a burden (e.g. a mortgage that the buyer will continue paying, etc.), this would have to be specifically mentioned expressing the exclusion of any other burden.

4.4.). Also one must check that the current expenses attached to the property have been paid by the seller, and up to date at the time of completing the sale. To do this, one must ask and get from the seller the corresponding receipts of at least the last two billing periods.
Those expenses are:
a) Each year's Land rate taxes (Known as Impuesto de Bienes Inmuebles or I.B.I)
b) Community fees
c) and, where applicable, services such as water, electricity , rubbish collection, telephone, etc.

Expenses related to property purchase:
4.5.1.). Local tax on the increase in value of the land (also known as Plus Valía). One must not confuse this tax with the capital gains tax. It is calculated based on the theoretical increase in value of the land, regardless of whether or not there is construction on it. Generally, the longer a person has owned a property, the higher this tax would be, since all the annual revaluation scales would be applied on the land. Due to its characteristics, this expense corresponds to the seller. Nevertheless, it is not unusual for both parties to agree that the purchaser would pay all expenses, including this one. Therefore it is advisable to ask the Town Hall what is the amount due for this Tax in the specific case, before agreeing who would pay.

4.5.2.). Notary's fees. In most cases, are within the range of 40.000 (US $320.00) to 80.000 Pesetas (US $640.00) It is an expense that corresponds to the seller, but as was previously stated, it could frequently be paid by the buyer, similar to other expenses.

4.5.3.). Land Registry expenses. The amount is usually similar to that of the notary's fees. This is a purchaser's expense.

4.5.4.) Impuesto de transmisiones patrimoniales y actos jurídicos documentados (abbreviated ITPAJD) or stamp duty. In purchases between private individuals it is 6% of the purchase price, as declared on the public conveyance deed; and in purchases where the seller is a company or real estate agent, this tax is substituted by the IVA (Value Added Tax) which is 7%. This is also an expense to be paid by the buyer.

4.5.5.). Attorneys expenses, agents, etc., if they apply. These correspond to the party who has contracted the particular service(s).

5.1.). Non residents could have open accounts in any Spanish bank. Generally and additionally, they could have such accounts in any type of currency they desire. In such accounts they could transfer and deposit any amount from outside of Spain. It is also allowed to transfer any amounts of money from the referenced account to any Country other than Spain.

5.2.). One must consider, however, the following control regulations, specifically designed to prevent laundering of illegal money:

5.2.1.). Each non-resident person who imports cash or banker's drafts to Spain --made out to cash-- for an amount higher than 1.000.000 Pesetas must declare this at the Spanish frontier when entering the Country. If this is not done, there could be problems at the time of depositing the referenced cash or banker's draft (made out to cash) in any bank account, or at the time one would decide to use these funds for an investment payment.

5.2.2.). Each person (resident or non-resident) who takes an amount in cash or banker's draft --made out to cash-- higher than 1.000.000 Pesetas out of Spanish territory, must also declare it at the Spanish frontier when leaving Spain. If this is not done and it is detected, a file would be opened with sanctions that could be substantial.