Legal essentials of property investing in Valencia for EU citizens
Making sense of Spanish property law
Buying a home in a foreign country is a big step. Between the legal process, cultural differences, and unfamiliar terminology, many EU investors feel overwhelmed. That’s why at Homely Valencia, we created our Property Chats series — real conversations with trusted local professionals to bring clarity to your investment journey.
In this episode, we spoke with Gonzalo Fernández, a senior lawyer at Prado Legal with more than 15 years’ experience advising international buyers. He shared key legal insights, common mistakes to avoid, and practical steps EU investors should follow when buying property in Spain — especially in the Valencia region.
Why Valencia continues to attract EU buyers
Gonzalo’s client base is wide-ranging — from retirees looking for a sunny place to settle, to investors and funds building property portfolios. While buyers come from all over the EU, he notes consistent demand from Germany, the Netherlands, the UK, and more recently Eastern Europe.
The reasons? A relaxed Mediterranean lifestyle, excellent infrastructure, and significantly more affordable housing than other major Spanish cities like Madrid or Barcelona.
Three legal steps to take before you buy
Before you start booking viewings or making offers, it’s essential to set yourself up correctly from a legal perspective. Gonzalo recommends three practical steps that every EU investor should take:
1. Apply for your NIE
The Número de Identificación de Extranjeros is a legal ID number required for all foreign buyers. Without it, you can’t sign contracts, pay taxes, or register the property. Gonzalo helps many of his clients handle this early to avoid delays later.
2. Open a Spanish bank account
Technically you can pay from abroad, but using a non-Spanish account often causes slowdowns or blocks payments entirely. Opening a local account with a major bank keeps everything running smoothly.
3. Conduct a legal check of the property
Due diligence is non-negotiable. This includes verifying the legal owner, checking the land registry, and identifying any debts, disputes or restrictions on the property. Gonzalo shared a case where the person selling wasn’t even the rightful owner — a delay that could’ve lasted months without a lawyer.
“I once had a client ready to buy — only to find out the seller wasn’t even the legal owner.”
The role of a lawyer in your purchase
Hiring a lawyer isn’t legally required in Spain, but it’s strongly recommended — especially if you’re buying from abroad. A local solicitor will verify the property’s legal status, review all contracts, and protect your interests throughout the process.
Gonzalo’s team handles everything from the contrato de arras (reservation contract) to communicating with agents, notaries, and banks. His advice? Always review documents before you sign them, and never rely solely on the seller’s agent.
“Bad contracts lead to bad outcomes. Reviewing them thoroughly from the beginning protects your investment.”
Understanding the reservation contract
The contrato de arras is a reservation contract that secures the property before the full purchase. It’s widely used in Spain and acts as a formal commitment from both parties to complete the deal.
Buyers should be aware that this contract includes financial penalties. If you back out, you lose your deposit. If the seller pulls out, they must return double your deposit.
While not mandatory, Gonzalo confirms that “90% of my operations have a contrato de arras,” and stresses the importance of reviewing its terms carefully.
What you need to know about okupas?
The risk of okupas (squatters) is one of the biggest fears we hear from new buyers — but the reality is less dramatic. Gonzalo explains that while the media has amplified the problem, most investors never encounter this issue.
“Normally okupas is not the major concern — the problem is a bit magnified.”
That said, if you do end up buying a property with illegal occupants, eviction is possible — it just takes time and legal procedures. His advice? Avoid such properties unless you’re getting proper legal support from day one.
Buying properties with existing tenants
If a property is already rented, don’t assume you can move in or change the lease immediately. Spanish law tends to protect tenants’ rights, and contracts must be honoured.
Gonzalo advises all buyers to review the tenant agreement before purchasing, especially when the lease extends beyond the sale date.
“They might stay and are not going to get out when you are told, because they have the right to stay until the contract ends.”
Can you transfer the property later?
Some buyers ask if they can purchase in their own name and later transfer ownership to a company or family member. While this is legally possible, Gonzalo warns that each transfer can trigger taxes — and those add up.
“There are tools to pay the least possible taxes. It’s very important.”
He recommends seeking professional advice before purchasing, not after, so you can structure the transaction in the most efficient way.
What is nuda propiedad (bare ownership)?
Nuda propiedad is a type of ownership where you legally own the property, but someone else (usually a relative or elderly occupant) retains the right to live in it for life. This setup is rare, but not unheard of — and it comes with legal restrictions.
“You are the owner but you cannot do anything with it… which is a bit illogical, but it is that way.”
If you’re considering this option, make sure your lawyer conducts a full due diligence review.
Tourist licences and short-term rental rules
Spain has recently introduced more restrictions on short-term tourist rentals like Airbnb. However, Gonzalo is quick to point out that Valencia has not followed Catalonia’s path of heavy regulation — at least not yet.
“I have clients that are still buying — full buildings, apartments. They are still doing it.”
His advice: check the licensing rules in your building and district, but don’t panic. Proper planning and good legal advice go a long way.
Final words of advice for EU buyers
Gonzalo’s final message to EU investors is both practical and personal:
“Take your time, take some advice. And if you really want it, go for it no matter what.”
Whether you’re buying for yourself or investing through a company, the takeaway is the same: plan carefully, don’t rush, and work with professionals who know the system.
Ready to start your property investing in Valencia?
At Homely Valencia, we guide EU buyers every step of the way — from your first questions to final signatures. We partner with trusted legal and financial experts like Gonzalo to make sure your investment is secure, smooth, and stress-free.
Book a free consultation with our team today and explore your options with confidence.
Ready to take the next step?