Legalising unregistered properties in Spain for foreign investors

Legalising unregistered property in Spain for foreign investors

Foreign investors continue to encounter properties in Spain that were built without planning permission, registered incorrectly, or never legalised in the first place.

This issue affects UK buyers significantly in the post-Brexit landscape.

Legalising unregistered property in Spain protects long-term value, reduces risks of sanctions, and ensures compliance with AEAT rules, local planning authorities, and Spanish Civil Code requirements.

This guide provides a full breakdown of how foreign property investors can regularise irregular buildings through proven legal channels, supported with real procedures, regional differences, and practical steps.

Understanding unregistered and irregular properties in Spain

Unregistered property refers to a home or structure that appears in the physical world yet does not match the official details held at the Land Registry or Catastro.

An irregular or illegal property refers to a construction that was built without proper planning permission, constructed differently from the approved plan, or altered without updating official records.

These scenarios affect both resale value and legal security.

What counts as an unregistered property in Spain?

A property becomes unregistered when the Land Registry lacks full information about the building or any subsequent extensions.

A property becomes irregular when its construction breaches Spanish planning rules as set out in the Spanish Civil Code and regional urban planning laws.

Common examples include rural homes built without licences, extensions not declared to the Town Hall, and swimming pools missed in Catastro records.

Definitions under the Spanish Civil Code

The Spanish Civil Code and Urban Planning Acts categorise irregularities based on their legality, construction date, and compliance with municipal regulations.

Illegal properties may still qualify for regularisation procedures if the prescriptive period has passed.

Administrative vs planning irregularities

Administrative irregularity refers to missing registration or outdated Catastro data.

Planning irregularity refers to a breach of local urban regulations.

Why UK investors face this issue post-Brexit

Post-Brexit, UK nationals are treated as non-EU investors.

This shift increases scrutiny from AEAT, municipal authorities, and land registries.

Non-EU buyers must complete stricter due diligence, particularly in rural zones and sensitive areas.

Current data and market overview

Why legalising unregistered property in Spain matters for foreign buyers

Legalising unregistered property in Spain increases asset reliability for investors and ensures alignment with local, regional, and national regulations.

Foreign buyers benefit from clearer tax obligations and improved access to government services.

Value, tax, and compliance impacts

Legalising unregistered property in Spain for foreign investors gives them full access to utilities, municipal services, and renovation permits.

Banks prefer legally registered properties for mortgage purposes.

Legalisation also improves the accuracy of municipal IBI and Plusvalía calculations.

Types of irregularities and how they are regularised

Types of irregularities vary across Spain, and the path to regularisation depends on the property’s age, location, and level of non-compliance.

Properties built without planning permission are common in rural areas and older developments.

In Andalucía, the AFO process offers administrative recognition for buildings that cannot be demolished due to the prescriptive period.

This requires architect reports, technical certification, and municipal approval.

In the Valencian Community, the Impact Minimisation procedure applies to similar cases and includes environmental and urban assessments.

Many regions allow regularisation once a building exceeds six years without enforcement, although timelines differ.

Some properties started with valid licences but underwent unapproved alterations.

These require updated technical certificates, and municipalities may apply small penalties for historical non-compliance.

Step-by-step process to legalising unregistered property in Spain

A structured process helps foreign owners avoid delays and ensures the property becomes fully compliant.

Initial diagnostic checklist

• Essential steps include obtaining the Land Registry extract, Catastro certificate, and Town Hall records.
• The prescriptive period must be confirmed for each region.
• Utility compliance should be checked, along with any limits set by the Spanish Civil Code.
• Tax implications for UK owners should be reviewed in line with the Spain–UK Double Tax Treaties.

Legal strategy assessment

• A lawyer determines whether an AFO, Impact Minimisation, or a corrective licence is needed.
• Some municipalities require minor demolition or adjustments to meet planning rules.
• Incorrect or outdated data can lead to AEAT queries for NRIT, so fiscal risks must be assessed early.

Document preparation

• Technical plans and a habitability certificate from an architect must match the building’s actual size and condition.
• Notarial declarations are required for registry updates.
• AEAT submissions must be corrected where needed to ensure tax accuracy.

Final registration and valuation

Once approved, the property in Spain receives a fully updated title deed.
IBI and Plusvalía may change after Catastro updates.

A fresh valuation helps confirm the property’s market position and satisfies lenders.

Risks of not regularising an illegal property

Not regularising an illegal property creates avoidable legal and tax risks for foreign owners.

Town Halls can issue fines or require corrective works, and selling the property becomes harder without proof of full legality.

• Buyers often demand price reductions when documents are incomplete.
• Tax problems can also arise.
  AEAT may detect gaps between Catastro and Land Registry data, leading to amended assessments or penalties.
• Incorrect NRIT filings may accumulate over time and trigger enforcement.

For guidance on resolving issues with legalising unregistered property in Spain, investors can contact Delaguía y Luzón for clear, reliable support.

Their solicitors and property law specialists assist clients in Spanish, English, Russian and French, offering tailored advice for every stage of the legalisation process.