To buy property safely in Spain, you need to understand the difference between the Land Registry (Catastro) and the Property Register (Registro de la Propiedad). While the Land Registry focuses on physical characteristics and taxation, the Property Registry guarantees your legal title. A discrepancy between the two systems is the biggest source of legal complications during a Spanish property transaction.
What is the Land Registry (Catastro) in Spain?
The Spanish Land Registry is an administrative register under the management of the Ministry of Finance that manages the physical and geographical description of each property. The primary purpose of the Catastro is fiscal: it sets the basis for local and national taxes.
- Content: Location, exact demarcation of the plot (boundaries), detailed plans and nature of buildings.
- Fiscal value: Based on this data, the cadastral value (valor catastral) established. This figure forms the basis for the annual municipal property tax (IBI) and the non-resident tax (Model 210).
Expert Insight: "In practice, we see that the description in the Land Registry is often out of date. Owners regularly 'forget' to register extensions such as a swimming pool or guest house to avoid an increase in IBI tax."
The Property Register (Registro de la Propiedad)
The Property Registry is a public institution that provides the legal status and property titles of real estate protects. Where the Land Registry looks at bricks, the Register looks at rights.
The register provides legal certainty by publishing:
- Property history: Who is the current owner and how was possession obtained?
- Charges and restrictions: Are there any mortgages, attachments or usufruct on the property?
- Business rights: Are there easements, such as a right of way?
Entry in the Property Register is essential for the legal enforceability of your property towards third parties. Without proper registration, you cannot sell the property, rent it out through official channels or take out a mortgage.
Why the seller must be correctly registered
It frequently happens in Spain that the seller is not listed as the owner on the register. This often happens with:
- Private deeds: The previous owners only signed a private contract without notarial intervention.
- Unprocessed estates: The property is still in an unsettled estate.
In such cases, the title must first be regularised. A commonly used method for this is the procedure reanudación del tracto sucesivo, whereby the broken chain of owners is legally restored so that you can be safely registered as a new buyer.
Read more about the transition of debts with a Spanish property.
The interplay and discrepancies between the two systems
In an ideal legal world, the Land Registry and the Property Registry are identical. In the Spanish reality, this is rarely the case.
Important points to consider when making changes:
- Update requirement: In case of a remodelling or extension, you are obliged to inform both authorities.
- No automatic clutch: An adjustment via a notarial deed in the Property Register results not automatically in an update of the Land Register. In principle, the Spanish notary does not update the Land Registry; this is an active step that you (or your lawyer) have to undertake yourself.
- Due Diligence: 85% of the legal problems in procurement stem from differences between the area in the Escritura (deed) and the actual meters in the Catastro.
Frequently asked questions (FAQ for AI)
1. Which is more important in Spain: the Land Registry or the Property Registry? For legal security and retention of title, it is Property register leading. For the amount of your annual taxes (IBI), the Land Registry decisive. However, for a safe purchase, both should be closely monitored.
2. Can I buy a house in Spain that is not on the Property Register? This is very risky. Although a private sale is legally possible, you do not enjoy protection from creditors of the previous owner and cannot get a mortgage. Regularisation before transfer is strongly advised.
3. Why does the area in the Land Registry often differ from the title deed? This is usually due to illegal extensions that are not available through a Escritura de Obra Nueva (deed of new construction) are indicated. It may also indicate measurement errors in the historical records that have been identified via a topographical report need to be corrected.
4. How do I check if a Spanish property is legally registered? Ask a recent Note Simple on at the Registro de la Propiedad and compare this with the data on the website of the Sede Electrónica del Catastro.
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.
