Rights and Obligations of Foreign Property Owners in Galicia

Constitutional rights of foreign property owners

Article 33 of the Spanish Constitution establishes the right to private property and recognizes that both Spaniards and foreigners have the right to acquire and own real estate in Spain. This right is guaranteed by the Constitution and complemented by Article 13, which grants foreigners the fundamental rights of Section One of Title I.

Additionally, property rights in Spain are protected by the European Convention on Human Rights and international treaties signed by Spain. This means that as a foreign owner, you have exactly the same property rights as a Spanish citizen over your property in Galicia.

Differences between EU and non-EU owners

Right to buy and sell freely

As a foreign owner, you have the right to buy and sell your property without restrictions. No government permission is needed to sell, and you can transfer sale proceeds abroad (subject to anti-money laundering regulations for amounts over 10,000 euros).

On sale, consider:

• Municipal capital gains tax: Tax on the increase in land value. Paid by seller. In Galicia, between 15% and 30% of the increase.
• 3% withholding: On property sales by non-residents, the buyer withholds 3% of the price and pays it to the tax authority.
• IRNR declaration: You must declare the capital gain on form 212 within 3 months of the sale.

Tax obligations

IRNR (Non-Resident Income Tax)

Every non-resident owner of property in Spain is required to pay IRNR, even if the property is not rented. It is calculated on an imputed income of 1.2% (urban cadastral categories) of the cadastral value.

IBI (Property Tax)

IBI is an annual municipal tax on property ownership. Rates in Galicia:

Waste tax (basuras)

Annual municipal waste collection tax. In Galicia, between 60 and 200 euros/year depending on municipality and property size.

Community of owners obligations

If your property is part of a building or complex, you are a member of the community of owners:

• Community fees: Mandatory. Covers maintenance, cleaning, elevator, building insurance. Non-payment can result in seizure.
• Extraordinary assessments: For communal works (facade, roof, elevator).
• Meeting attendance: You can attend or delegate your vote via representative.
• Rules: Comply with internal community rules (noise, pets, terraces).

Utility contracts

• Electricity: Endesa, Naturgy, Repsol or alternative providers. Non-residents may need a deposit (100-300 euros).
• Water: Municipal water service. Emafesa in Ferrol, Viaqua in Vigo, Aguas de Galicia in rural areas.
• Gas: Naturgy or Repsol for natural gas. Butane/propane for areas without network.
• Internet: Movistar, Vodafone, Orange, Digi. Fiber optic not available in all rural areas.

Spanish will importance

A Spanish will is essential for property owners. Benefits:

• Speed: Inheritance deed can be executed in 2-4 weeks.
• Lower cost: Avoids legalization of foreign documents.
• Clarity: Avoids conflicts between heirs.
• Choice of law: You can choose Spanish law or your national law (EU Regulation 650/2012).

Cost: 50-120 euros before a notary.

Tax representative requirement

Non-resident owners must appoint a tax representative before the AEAT:

• Receives tax notifications
• Files tax returns (form 210, IRNR)
• Handles any tax requirements

Cost: 100-300 euros/year through local agencies in Galicia.

Anti-money laundering requirements

• Cash payments over 1,000 euros prohibited in transactions involving a business (since 2021).
• Fund movements over 10,000 euros between Spain and another country must be declared (form S1).
• Source of funds: Notaries will request justification for property purchases.

Brexit impact for British owners

• Existing rights: Property rights before Brexit remain intact.
• New purchases: No restrictions, same process.
• Stays: Limited to 90 days in any 180-day period (without visa).
• IRNR rate: Reduced from 24% to 19% since 2024.
• Driving: UK license no longer valid in Spain. Exchange or international needed.
• Healthcare: European S1 no longer applies. Private insurance or special Social Security agreement (157 euros/month).

Where to get help

• Municipal Consumer Offices: Free consumer rights advice.
• Notary: For deeds, wills and powers of attorney.
• Embassy/Consulate: Legal emergency assistance.
• AEAT: Online and in-person tax consultations.
• Local agencies: For daily management (utilities, IBI, community). Cost: 30-80 euros/month.

Conclusion

As a foreign property owner in Galicia, you have the same property rights as a Spanish citizen, but also the same obligations. The most important: pay annual IRNR (form 210), keep IBI and waste taxes current, comply with the community of owners, and appoint a tax representative. With a Spanish will and a good local representative, managing your Galician property from abroad will be straightforward.