Navigating the Spanish property market can be challenging, and real estate law is often complex. A real estate lawyer therefore plays an invaluable role. Missteps can otherwise quickly turn a home purchase into an expensive nightmare.

A qualified lawyer ensures a safe and smooth transaction by:

• reviewing contracts and documents
• conducting legal due diligence
• negotiating better terms
• providing advice on taxes and finances

In this way, your interests are protected throughout the entire process.

• Table of contents
• What is professional liability insurance?
• Are lawyers expensive?
• What happens if you hire the wrong lawyer?

Why legal support is essential

Coordination of your purchase according to the law

Spanish property law contains specific rules and formalities that must be followed in a real estate transaction. A lawyer ensures that the entire process — from the initial offer to the final deed of sale — is handled correctly and in full compliance with Spanish law. This protects you from future legal problems and provides peace of mind.

Support during negotiations

An experienced lawyer is a major asset during negotiations. They protect your interests and help you secure favorable terms regarding price, payment schedules, deposits, and clauses related to repairs or conditions. Their involvement ensures you are legally protected while achieving the best possible outcome.

Property verification and legal due diligence

A lawyer conducts thorough legal checks to verify the property’s registration and its legal and financial status. This process prevents unpleasant surprises, such as hidden debts, mortgages, unpaid community fees, illegal extensions, or other issues. This ensures that the property is a sound investment and helps you avoid future disputes and financial losses.

Review of legal documents

Spanish legal documents are often complex and detailed. A lawyer carefully reviews purchase agreements, title deeds, and other documents to ensure they are accurate, clear, and fair. Their expertise protects your rights as a buyer and reduces the risk of future conflicts.

Advice on taxes and finances

Understanding Spanish tax regulations can be challenging, especially for foreign buyers. A lawyer can guide you through various taxes (VAT, transfer tax, and stamp duty) and explain tax implications, such as the declaration requirement for assets outside Spain (Modelo 720). Their advice can also help you structure your purchase to minimize tax burdens and ensure compliance, avoiding hefty fines and penalties.

Fraud prevention

A lawyer can identify and prevent fraud, ensure the property matches its description, and confirm there are no tax issues due to underreporting.

Communication with notaries and other professionals

A lawyer can represent you and communicate with notaries, banks, and other relevant parties on your behalf — especially via power of attorney. This may include opening a bank account, applying for an NIE number, or handling financial and legal matters. This saves time, avoids unnecessary travel, and ensures everything is done according to Spanish law.

Language barrier

For those who do not speak Spanish, understanding legal documents and technical terms can be very difficult. A lawyer can translate and explain everything so that you are fully informed and aware of all aspects of the purchase.

Assistance with NIE and other requirements

A lawyer can guide you through obtaining an NIE (foreigner identification number) and other necessary documents. Often the easiest way is to give a local lawyer (or gestor, administrative advisor) a notarized power of attorney so they can handle it for you.

Why having a power of attorney (POA) is important

Many clients arrange a power of attorney (POA) early in the buying process. This saves both time and money throughout the property transaction. By signing a POA, you give your lawyer the authority to act on your behalf during the process.
First, you need to apply for an NIE number, your lifelong identification number in Spain. This is required for all non-Spanish citizens who want to engage in financial activities in the country — for example, buying property, a car, or working in Spain. With a POA, your lawyer can also approve and sign documents related to the purchase. This means you only need to travel to Spain once — when you are ready to collect the keys to your new home.
It is best to sign the POA in Spain. As the grantor (the person giving the POA), you appear before a notary, who verifies your identity and ensures that you understand the terms. The notary then issues a certified copy of the document, which serves as proof of the POA’s validity, and signs it before the Spanish notary.
A POA can also be arranged in Sweden, the UK, or other countries, but the process becomes longer and more costly. Our recommendation is to prepare the document during your first visit to Spain when you come to view properties.

Registered lawyers have professional liability insurance (PI Insurance) that covers cases of malpractice or negligence, legal costs, claims, and damages caused by inadequate advice or mistakes. If something goes wrong, the insurance ensures you are compensated for financial losses resulting from professional negligence, errors, or omissions. This coverage gives you peace of mind knowing that your lawyer is responsible and that there is an extra layer of protection securing your investment.

As a proportion of the total cost of buying a property in Spain, legal fees are very reasonable. Lawyer fees usually range between 1% and 2% of the property’s purchase price. This covers the lawyer’s work in reviewing the transaction, ensuring clear ownership, handling the legal aspects of the purchase, and guiding you through the entire process. Trying to save on professional services can actually lead to much larger losses.

Choosing an unsuitable lawyer can expose you to serious risks, such as:
- Undiscovered debts (property taxes, mortgages, community fees)
- Missed issues with title deeds or ownership disputes
- Poor negotiations or unfavorable terms
- Ignored construction defects
- Unclear contracts leading to legal disputes
- Lack of transparency and communication
- Missed deadlines or legal procedures
- If your lawyer does not meet expectations, you should not hesitate to seek a second opinion, file a complaint with the Spanish Bar Association (Colegio de Abogados), or, if necessary, consider legal action.

Conclusion

Legal support is one of the most important aspects of buying property in Spain. A professional lawyer ensures that your interests are protected, that the transaction is conducted according to the law, and that the process is both efficient and smooth.

At Homerun Brokers, we work with some of the most reliable lawyers on the Costa del Sol. Together with your real estate agent, your lawyer will guide you through every step of the property purchase — so you can focus on enjoying your new home, rather than worrying about legal risks.