How much does it cost to buy a house in Galicia?

Prices vary by area. On the Costa da Morte, average prices range from €800 to €1,800/m². A renovated house in Corcubión or Cee costs €120,000-250,000, while beachfront apartments can exceed €300,000. Inland villages offer opportunities from €60,000.

Can a foreigner buy property in Spain?

Yes, anyone regardless of nationality can buy property in Spain. You only need to obtain an NIE (Foreigner Identity Number), open a Spanish bank account, and meet tax requirements. There are no restrictions for international buyers.

What taxes do I pay when buying a house in Galicia?

For resale properties, ITP in Galicia is 8% (up to €400,000) and 10% on the excess. For new builds, VAT is 10%. You also pay AJD (1.5%), notary fees (€600-1,200), registry (€400-800), and administration (€300-600).

How long does the buying process take?

The complete process typically takes 6-12 weeks from signing the arras contract to the public deed. Property search can add 1-3 months. If you need a mortgage, allow 4-6 additional weeks for bank approval.

Buying 20 March 2025 3 min 458

Buying a House at Judicial Auction in Galicia: Complete Guide 2025

What are judicial auctions?

Judicial auctions are public procedures organized by courts to sell seized assets, typically due to mortgage defaults or debts. In Galicia, these auctions are published in the Official State Gazette (BOE) and managed through the electronic Tax Agency Auction Portal.

Properties are typically sold at 20-40% below market value, making them attractive for investors. However, they carry specific risks you must understand before bidding.

Types of auctions

Type	Description	Average discount	Risk
Mortgage judicial auction	Mortgage default	20-30%	Medium
Executive judicial auction	Non-mortgage debts	25-40%	High
Social Security auction	Tax/Social Security debts	30-50%	Medium-High
Bank REO auction	Bank-repossessed properties	15-30%	Low

How the auction process works

Publication: Published in the BOE at least 20 days in advance with description, valuation, encumbrances and auction type.
Deposit: To participate, deposit 5-30% of the valuation (usually 20%). Returned if you don't win.
Bidding: Electronic bidding through the Auction Portal. You can bid from the valuation amount or lower if permitted.
Award: Highest bidder wins. If bids don't reach 50% of valuation, the claimant can request award at that amount.
Payment: Winner has 40 days to pay the balance. Deposit is forfeited if you default.
Deed registration: The court issues a writ for Property Registry inscription.

Requirements for foreigners

Foreign citizens can participate in Spanish judicial auctions without restrictions. You need:

NIE (Foreigner Identification Number): Mandatory for any real estate transaction in Spain.
Spanish bank account: For deposit and payment.
Representative (optional): Power of attorney to a lawyer to bid on your behalf.
Digital certificate: Required for the electronic Auction Portal.

Risks and mitigation

Risk	Impact	Mitigation
Illegal occupants	Cannot use the property	Visit before bidding; check possession status with court
Hidden encumbrances	Inherited debts	Get Registry note before auction; subsequent charges are cancelled
Poor condition	Unexpected renovation costs	Visual inspection; budget 15-25% for renovation
IBI/community debts	Pending payments	Request debt certificate from town hall
Auction contestation	Delays of months/years	Accept process may be lengthy

The biggest risk is possession. If occupied, you must initiate eviction proceedings taking 6 months to 2 years. Always check occupancy before bidding.

Auctions on the Costa da Morte and Galicia

Galicia sees an average of 150-200 real estate auctions per year. On the Costa da Morte:

Area	Auctions/year	Avg award price	Discount vs market
A Coruña (province)	60-80	€85,000	25-35%
Pontevedra (province)	40-55	€95,000	20-30%
Lugo (province)	25-35	€55,000	30-45%
Ourense (province)	20-30	€45,000	35-50%
Costa da Morte	5-10	€65,000	30-40%

Financing auctions

Traditional banks: Some offer auction mortgages requiring pre-approval. Faster process (15-20 days).
Bridge financing: Short-term loans (6-12 months) at 8-12% rates. Useful for immediate liquidity.
Own capital: Safest option. You need 100% available within 40 days.
Mortgage on the property: After award, you can mortgage the auctioned property if free of encumbrances.

Practical tips for investors

Always investigate: Get a Property Registry note before bidding.
Visit the property: Visit dates are listed in the BOE announcement.
Set a maximum: Don't get carried away. Define your ceiling price beforehand.
Calculate all costs: Add 12-15% for taxes (ITP/AJD 8-10%), notary, registry and agency fees.
Start with bank auctions: Safer, allowing visits and inspections.
Consult a lawyer: A real estate specialist can review encumbrances and process.
Have liquidity ready: Deposit must be immediately available.