Formalities after buying a home in Spain: what to do after signing

After receiving the keys, confirm that the taxes, the registration and the changes of ownership have a person responsible and a follow-up.

Signing the purchase is an important moment. Now come the move, the furniture and the first decisions about your new home. Among all that, it is easy to leave a formality pending or to assume someone is taking care of it.

At MH Legal & Seguros we explain which formalities are worth reviewing after buying a home in Spain and which documents you should keep.

1. Confirm the filing of the purchase taxes

Before filing the documents away, check which returns are due, who will file them and what the applicable deadline is.

The taxation depends on the transaction and the territory. A second-hand purchase and a first delivery of a home may be treated differently; there are also territorial particulars that must be reviewed.

Do not use a generic deadline for all of Spain. Ask for the specific timetable for your transaction.

If a gestoría, the bank or your adviser handles these formalities, request:

• The proofs of the returns filed.
• The corresponding payment receipts.
• The invoices for the services and costs.
• The final settlement of the provision of funds.

Providing funds to handle the taxes does not prove that they have already been filed. The final documentation lets you check what has been done and whether any amount remains to be paid or refunded.

If you bought from a non-tax-resident seller and the 3% withholding applied, also verify the payment via form 211 (modelo 211).

2. Track the inscription in the Land Registry

Confirm that the deed has been filed and ask for information on the status of the process.

Filing and registration are different moments. The registrar must qualify the documentation and may flag an issue that needs to be remedied.

When the process finishes, request the documentation that lets you confirm your acquisition is correctly registered. Also review your share if you bought jointly with another person.

In an ordinary purchase, registration is not, as a general rule, what transfers ownership, but it provides important legal protection.

Check the cancellations that were agreed

If the transaction included cancelling the seller’s mortgage, track its registration cancellation.

Paying off the loan and removing the charge from the Register are different steps. Do not close that task merely because the balance has been paid to the bank.

Note who will process the cancellation and who will give you the document confirming its result.

3. Verify the change of ownership in the Cadastre

The Cadastre and the Land Registry perform different functions. It is worth checking that the acquisition has also been incorporated into the cadastral information.

In certain cases, the communication by notaries or registrars means you do not have to file a return yourself. However, you must verify that the requirements are met and that the change has been made correctly.

Check the holder, the ownership share and the identifying data of the property. If you notice a difference, ask how it should be corrected.

4. Organise the IBI and the municipal rates

Check the collection calendar for the IBI (Real Estate Tax) and the rates that apply to the home, and the authority that manages them.

Review the contact details and, if you want to pay the bills by direct debit, confirm that the bank account is correctly registered.

The IBI for the year of the purchase deserves a specific check. As a general rule, it accrues on 1 January and the person liable before the administration is determined by the ownership on that date. The financial split between buyer and seller must be reviewed according to the agreement and the applicable legal criterion.

Do not confuse changing the direct debit with resolving who must bear a specific bill.

5. Change the utilities and keep the readings

Contact the companies to manage the ownership, the contact details and the direct debits of the services.

Prepare the documentation they request and keep the confirmations of each change.

It is worth recording the meter readings at handover, with photos or a shared document. That makes it easier to clarify which period a consumption relates to.

Review:

• Electricity and water: holder, bank account and billing address.
• Gas, if any: contract and service conditions.
• Internet and other services: availability and activation date.

Before requesting a cancellation, check its consequences and the cost of a new connection.

6. Notify the purchase to the owners’ community

If the home is part of a community, inform the manager or president of the acquisition.

Provide your details and an address for notifications. Request information on the fees, the next payment dates and any approved special assessments (derramas).

If you bought a second residence and live abroad, make sure important communications can reach you. It is also worth reviewing how the split of the special assessments with the seller was agreed.

7. Review the home insurance from handover

Check from which date you have cover and whether the policy suits the home and its use.

A main residence, a home that stays empty for part of the year and a rented property may need different conditions.

Review the cover, the insured sums, the civil liability and the exclusions. If there is a mortgage, also check the insurance requirements agreed with the lender.

Do not assume the seller’s policy automatically protects you.

8. If you are a non-resident, prepare your tax calendar

Owning a home in Spain can create tax obligations even if you do not live here.

If you are a non-resident individual and you own an urban property for your own use or left empty, you may have to declare an imputed income in the Non-Resident Income Tax (IRNR). If you rent it out, the income and the periods allocated to each use must be analysed.

Receiving no rent does not necessarily mean you have nothing to declare. In addition, depending on your assets and circumstances, other obligations may exist.

Organise the calendar with your adviser and tell them of any change of use or tax residence.

Keep a folder with the final documentation

Gather the deed, the tax proofs, the payments, the invoices, the registration documentation and the confirmations of the changes made.

Add the certificates and documents of the home, the available guarantees and the insurance policy.

Having it organised makes a future sale, a renovation, a claim or a tax query easier.

Have you just bought a home?

At MH Legal & Seguros we help you identify the pending formalities, review the documentation and coordinate their follow-up.

Contact our team and tell us where the property is and when you signed the purchase.