Buying a second residence in Spain requires a different legal and tax approach than in Belgium, with the limited role of the Spanish notary and regional tax differences being particularly crucial. For a secure purchase, you should take into account an independent legal check on planning permission, the compulsory bank guarantee for new construction and the specific declaration requirement for non-residents.
1. The limited role of the Spanish notary
Unlike the Belgian notary, the Spanish notary does not conduct an in-depth investigation into a property's urban planning status, permits or any hidden debts. The control function of the Spanish notary is strictly limited to requesting information in the Registration Office (Registro de la Propiedad) and strict compliance with anti-money laundering laws.
- No control on rentability: The notary does not examine whether the property meets the requirements for a tourism licence.
- No contractual protection: The notary does not draw up a private sale agreement (compromise) on; this is the responsibility of your own legal counsel.
- Urban planning risks: Checks for illegal annexation or lack of a certificate of occupancy are beyond the notary's remit.
"Anyone buying in Spain should understand that the notary is there for administrative ratification, not for the legal protection of the buyer. An independent lawyer or jurist is essential for due diligence."
2. Regional differences in acquisition costs
The total purchase cost for property in Spain varies by region and type of property, with an average budget of between 12% and 15% on top of the purchase price. This variation is mainly due to the autonomous power of regions to set their own tax rates.
Resale (Existing construction)
When buying an existing property, you pay transfer tax (Impuesto sobre Transmisiones Patrimoniales or ITP).
- Catalonia & Costa Blanca (Valencia): Charge rates between 10% and 11%.
- Murcia & Andalusia: Usually charge more favourable rates around 7% to 7.75%.
See in more detail:
New building
For new construction, the VAT rate (IVA) on the Spanish mainland nationally fixed at 10%. However, the additional stamp duty (Actos Jurídicos Documentados or AJD) vary by region and hover around 1,5%.
3. Bank guarantee: indispensable for new construction on plan
When buying new construction on plan, obtaining an individual bank guarantee is the only legal way to protect your down payments in case of the promoter's bankruptcy. Although this guarantee is legally required under Spanish law (Ley 57/68 and subsequent amendments), in practice many promoters fail to deliver it spontaneously.
- Protection: The guarantee covers all amounts paid plus statutory interest.
- Validity: The bank guarantee should be individually in your name and not just a general policy of the promoter.
- Risk: Without this guarantee, you will lose your entire investment if construction ceases.
Here you can find more explanations about the bank guarantee in Spain.
4. Taxation: taxes in Spain and Belgium
As a Spanish property owner, you are subject to a two-tier tax system: the annual non-residents' tax in Spain and the declaration obligation in Belgian personal income tax. However, thanks to the double taxation treaty, you will not be taxed twice on the same income.
In Spain (Model 210)
- On hire: You pay 19% load on net rental income (after expenses). Declaration is done quarterly or annually.
- Own use (not rental): You pay a flat tax of 19% at a percentage of the cadastral value (valor catastral), usually 1.1% or 2%.
- Local taxes: The IBI (Impuesto sobre Bienes Inmuebles) is the annual Spanish property tax.
Listen to our podcast episode on Modelo 210 - the annual tax for non-residents.
In Belgium
Although Spanish rental income is exempt from effective tax in Belgium, the progression reservation. This means that the income counts to determine the tax rate on your other Belgian income. Since 2021, you have to declare Spanish cadastral income (determined by the Belgian tax authorities) for this purpose.
Read more about the Belgian taxes on your second stay.
5. Inheritance tax and succession planning
Although Belgian inheritance law continues to apply to the estate of a Belgian resident, Spanish inheritance tax is inevitably due on the property in Spain. It is therefore strongly recommended to use a specific Spanish will to be drafted.
- Administrative efficiency: A Spanish will speeds up settlement considerably and saves heirs expensive translations and legalisations of Belgian documents.
- Inheritance tax: Flemish inheritance tax is calculated on worldwide assets, but inheritance tax paid in Spain can often be credited to avoid double taxation.
- Planning: Techniques such as split purchase (usufruct/naked ownership) can significantly reduce future inheritance tax.
Listen to our podcast episode on succession planning for Belgium and Spain.
Frequently asked questions (FAQ)
What are the total additional costs when buying a house in Spain? On average, you should consider 12% to 15% additional costs on top of the purchase price. This includes regional transfer tax (7% - 11%) or VAT (10%), notary fees, registration fees and legal guidance.
Is a Spanish notary responsible for the legal status of a property? No. A Spanish notary only checks the identity of the parties and the basic property details in the register. He performs no control out on urban planning infringements, permits or the technical condition of the property.
Do I have to declare my Spanish property to Belgian taxes? Yes, you are required to declare your Spanish property to the Belgian tax authorities. Since 2021, the Belgian administration has had a Foreign Cadastral Income attributed to your Spanish property, which you must report in your tax return.
About the author: Glenn Janssens is a lawyer specialising in Spanish real estate transactions and tax regulations. Since 2017, he has been helping Belgian and Dutch individuals and entrepreneurs to safely purchase and structure real estate in Spain. He guides files from A to Z: from due diligence, ownership and tax control to estate planning and optimisation for residents and non-residents. Thanks to his years of experience, hundreds of handled files and focus on transparent communication, Glenn makes complex Spanish legislation understandable and practically applicable for every property buyer.
