How to Check for Debts on a Spanish Property Before You Buy

Why Debt Checks Are Critical in Spain

In Spain, certain debts and liabilities attach to the property, not the person. This is fundamentally different from the UK, where a property buyer generally isn't responsible for the seller's debts. In Spain, if you buy a property with outstanding debts, you can become liable for them — even debts you knew nothing about.

This principle — known as afección real (real charge) — means that thorough due diligence before buying is not just advisable, it's essential to protect your investment. A few hundred euros spent on proper checks can save you thousands in inherited debts and legal problems.

Here's a comprehensive guide to every check you (or more accurately, your lawyer) should carry out before committing to a purchase.

1. Nota Simple from the Land Registry

The nota simple informativa is the single most important document in your due diligence. It's an extract from the Registro de la Propiedad (Land Registry) that shows the current state of the property's registration. Your lawyer should obtain one at the very start of the process.

A nota simple reveals:

Ownership (Titularidad)

Who the registered owner is. This confirms that the person selling to you actually has the right to sell. Watch for:

• Multiple owners: If the property was inherited by several siblings, all must agree to sell. One owner cannot sell the others' shares without their consent
• Married couples: If the owner is married under a community property regime (gananciales — the default in Spain), both spouses must sign the escritura even if only one name appears as owner
• Corporate ownership: If the property is owned by a company, additional checks on the company's status and authorisation are needed

Charges and Encumbrances (Cargas)

Any registered charges against the property:

• Mortgages (hipotecas): Outstanding mortgage loans secured against the property. These must be paid off and cancelled (cancelación de hipoteca) at or before completion. If the seller has a mortgage, the escritura will include provisions for the bank to receive its payment and issue a cancellation
• Embargos: Court-ordered seizures, often for unpaid debts. An embargo prevents the property from being sold until the debt is paid or the embargo is lifted. This is a serious red flag — your lawyer must investigate the cause and ensure it's resolved before completion
• Annotations (anotaciones preventivas): Temporary notes indicating pending legal actions — lawsuits, bankruptcy proceedings, or provisional embargo orders. These are warning signs that require investigation
• Servitudes (servidumbres): Rights of way, drainage rights, or other easements that benefit neighbouring properties. These may be permanent and cannot be removed

Property Description

The registered description of the property — address, area, boundaries. Compare this carefully with reality. If the registro says the property is 120m² but it's actually 160m² (because of an unregistered extension), you have a problem that needs resolving before purchase.

Cost: €9-€15. Available within 24-48 hours online through registradores.org or in person at the local registry.

2. Community Fee Debts

Under Spain's Ley de Propiedad Horizontal, a buyer is liable for the current year's community fees plus the three preceding years' debts (four years total). If the seller hasn't paid their community fees, the community can pursue you for payment — and they can place a charge against your property to recover the debt.

What to Check

• Certificado de estar al corriente de pago: A certificate from the community administrator confirming the seller has no outstanding community fee debts. The seller is legally required to provide this before completion. Do not complete without it
• Outstanding derramas: Check if any special levies have been approved that the seller hasn't paid. These debts transfer to you
• Future derramas: Review recent community meeting minutes for planned major works that will result in special levies after you buy

Pro tip: Ask for the community's full financial records (last 3 years of accounts, current budget, reserve fund balance). A community with a high percentage of non-paying owners or a depleted reserve fund is a warning sign.

3. Checking IBI (Council Tax) Payments

The Impuesto sobre Bienes Inmuebles (IBI) is Spain's annual property tax — similar to UK council tax but generally much lower. IBI is charged by the local Ayuntamiento (town hall) and is the property owner's responsibility.

While IBI debts don't automatically transfer to the buyer in the same way as community fees, they can create problems:

• The Ayuntamiento can place an embargo on the property for unpaid IBI
• Unpaid IBI accumulates with surcharges and interest
• You'll need the IBI receipt to register the property and to show the catastral reference

What to Check

• Request the last 5 years of IBI receipts from the seller
• Verify the catastral value on the IBI receipt matches the property. If the Catastro shows a different area than reality (common with extensions), the IBI may be recalculated upwards after purchase
• Check the receipt is in the seller's name — if it's in a previous owner's name, ownership may not have been properly transferred

Typical IBI amounts: €300-€1,500/year for standard residential properties, depending on location and catastral value. Properties in tourist areas with high catastral values can be higher.

4. Utility Debts

Outstanding utility bills (water, electricity, gas) can cause practical problems for new owners. While utility debts are technically personal debts of the account holder (not debts attached to the property), there's a catch: if the seller leaves without paying, the utility company may refuse to transfer the account to your name until the arrears are settled — or worse, may cut off the supply.

What to Check

• Electricity: Request recent bills. Check the contract is legal (not an illegal connection or a bypassed metre). Verify the contracted power level (potencia contratada) is adequate — older contracts may be 3.3kW, which is insufficient for modern appliances and air conditioning
• Water: Confirm the connection is metered and legal. In some rural areas, properties rely on private wells (pozos) that may not have the required permits
• Gas: If applicable, check the butane/propane supply arrangement or mains gas connection
• Internet/phone: Less critical but useful to check availability, especially in rural areas where fibre broadband may not reach

Your lawyer should obtain final metre readings on completion day, witnessed by both buyer and seller, to create a clean break in utility liability.

5. Urban Planning Status

Checking the situación urbanística (urban planning status) of the property is one of the most important — and most overlooked — checks. This involves verifying with the local Ayuntamiento that the property is legally built and compliant with planning regulations.

What Could Go Wrong

• Illegal construction: The property (or part of it) was built without planning permission (licencia de obras). This is extremely common in parts of Andalusia, Valencia, and Murcia. Extensions, converted garages, enclosed terraces, and extra bedrooms are the most common illegal additions
• Land classification: The property may be on land classified as non-buildable (suelo no urbanizable). This mainly affects rural properties and can mean the building itself is technically illegal, even if it's been there for decades
• Infraction proceedings: The town hall may have open enforcement proceedings (expediente sancionador) against the property for planning violations
• Future development: Planned roads, infrastructure, or developments that could affect the property's value or access

What to Check

• Licencia de primera ocupación (first occupation licence): Also called cédula de habitabilidad in some regions. This confirms the property was built according to the approved plans and is fit for habitation. Without it, you may face problems connecting utilities or getting a mortgage
• Certificado de antigüedad: For older properties without formal planning records, a certificate from an architect confirming the building's age can establish that the statute of limitations for enforcement has passed (typically 4-6 years depending on the region)
• PGOU (Plan General de Ordenación Urbana): The town's master plan — shows how land is classified and any planned developments

6. The AFO Process in Andalusia

Andalusia has a specific process for dealing with its enormous stock of illegally built or extended properties. The AFO (Asimilado a Fuera de Ordenación) process allows owners to regularise buildings that don't comply with planning regulations, provided certain conditions are met:

• The building must be at least 6 years old (beyond the enforcement statute of limitations)
• No demolition or enforcement proceedings must be in progress
• The building must not be on specially protected land (costal, environmental, etc.)
• An architect must prepare an AFO report confirming the building's status
• The town hall grants AFO recognition, which is noted in the Land Registry

What AFO means: An AFO declaration doesn't legalise the building — it recognises it as "assimilated to out-of-planning" status. This means the town hall won't demolish it, you can insure it, and you can sell it. However, you typically cannot extend or substantially modify the AFO-recognised parts.

Cost: €1,500-€4,000 for the architect's report and processing, depending on the property's complexity.

If you're buying a property in Andalusia that has extensions or is entirely built without planning permission, check whether it has AFO recognition. If it doesn't, factor in the cost and time to obtain it — or negotiate a price reduction to compensate.

7. Your Lawyer's Role in Due Diligence

A competent, independent lawyer is your first line of defence against buying a problem property. Here's what they should do as standard:

• Obtain and review the nota simple — checking for charges, correct ownership, and description accuracy
• Verify the catastral reference — checking the property's boundaries and built area match the Catastro records
• Request town hall planning information — building licence, first occupation licence, planning classification
• Obtain the community fee certificate — confirming no outstanding debts
• Check IBI and basura (refuse) tax payments
• Verify utility connections — legal contracts in the seller's name
• Review the arras contract — ensuring proper protections for the buyer
• Attend the notary appointment — reviewing the escritura before you sign
• Handle post-completion tasks — tax payment, Land Registry filing, utility transfers

Cost: Legal fees typically run at 1% of the purchase price plus 21% IVA, with a minimum of €1,500-€2,000. On a €300,000 property, expect approximately €3,600 (€3,000 + IVA). This is excellent value for the protection it provides.

Independence is key: Your lawyer must be truly independent — not recommended by the estate agent, not the seller's lawyer, and not connected to the developer. Their loyalty must be to you alone. They should be willing to tell you not to buy if the property has unresolvable problems, even though that means they lose a fee.

Due diligence in Spain is more complex than in the UK because the Spanish property market has historically had more irregularities — illegal builds, unregistered extensions, planning infringements, and inherited properties with unclear title. A thorough lawyer navigates these complexities and ensures you buy a clean property with no hidden surprises.