Why Spain Attracts Real Estate Developers
Spain continues to be a magnet for foreign and institutional developers due to:
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📈 Strong demand for residential, hotel, logistics, and mixed-use assets
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🏙️ Urban growth in cities like Barcelona, Madrid, and Málaga
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🏖️ Coastal tourism zones with redevelopment potential
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💶 Access to EU infrastructure funds and private capital
But real estate development in Spain is heavily regulated — and legal support is essential from day one.
⚖️ Key Legal Services Developers Need in Spain
Real estate development projects typically involve:
| Phase | Legal Needs |
|---|---|
| 🔍 Pre-development | Land acquisition, zoning checks, SPV structuring |
| 🏗️ Development | Licensing, contracts, construction law |
| 🏢 Commercialization | Leasing, sales, tax planning |
| 🧾 Exit | Asset transfers, refinancing, disputes |
Legal counsel helps reduce risk, accelerate timelines, and protect investments at each stage.
🧰 Legal Structuring for Development Projects
Developers often use Special Purpose Vehicles (SPVs) for each project:
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SL (Sociedad Limitada) or SA (Sociedad Anónima)
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Spanish-registered for local compliance
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Sometimes held by offshore holding companies (e.g., Luxembourg, Netherlands)
Legal advisors assist with:
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Company incorporation
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Shareholder agreements (especially for JVs)
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Tax residency registration
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Ongoing corporate compliance
🗺️ Zoning & Urban Planning Reviews
Before purchase or planning submission, legal due diligence must include:
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Land use classification (residential, touristic, industrial, etc.)
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Buildability (edificabilidad) and height limits
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Municipal urban plans (PGMs in Barcelona, PGOU elsewhere)
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Protected zones (environmental, heritage, coastal)
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Restrictions from Catalonia’s urbanism code (if applicable)
Errors here can result in license rejections or costly redesigns.
🧾 Licensing & Permitting Procedures
No construction can begin without:
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📄 Building license (licencia de obras)
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🏢 Activity or occupancy license (licencia de primera ocupación)
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💧 Infrastructure approvals (water, sewage, energy)
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👷 Environmental or noise impact assessments (for certain projects)
Legal advisors coordinate with architects, engineers, and city planners to navigate municipal timelines and avoid delays.
📜 Contract Drafting & Risk Allocation
Construction and supplier contracts must clearly define:
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Scope of work (memoria técnica)
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Payment terms and penalties
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Liability for delays or defects
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Insurance and performance guarantees
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Force majeure and dispute resolution
Spanish law requires precise drafting to avoid unintended liability.
🏢 Commercialization & Exit Strategies
Once developed, assets are:
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🏘️ Sold in units (for residential projects)
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🏢 Leased to operators (hotels, logistics, BTR)
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🏦 Refinanced or sold to institutional buyers
Legal services include:
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Drafting lease or sale contracts
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Ensuring compliance with land registry (registro de la propiedad)
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Tax structuring for capital gains
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Due diligence preparation for buyer audits
💬 FAQs – Legal Issues for Developers in Spain
Can a foreign company develop real estate in Spain?
Yes — but you will likely need a Spanish entity and a tax ID (NIF). Local representation and permits are essential.
Do I need to own the land before applying for a license?
You can apply as an option-holder, but most cities prefer applications from title holders or long-term leaseholders.
What happens if there’s a construction delay or dispute?
Spanish law allows for penalty clauses and formal claim procedures. Legal support can help enforce or defend these.
🧠 Summary: Legal Services for Real Estate Developers
| Legal Area | Role of Counsel |
|---|---|
| 🧾 Structuring | SPV creation, shareholder terms |
| 🗺️ Urban review | Zoning compliance, density checks |
| 📄 Licensing | Construction permits, environmental clearance |
| 📜 Contracts | Architect, contractor, and supply terms |
| 💼 Exit | Sales, leasing, and tax-efficient disposal |
📞 Let’s Talk About Your Next Project
If you’re planning a real estate development in Spain, legal clarity is essential from land acquisition to final exit.
Our team supports international and institutional developers through every phase — ensuring regulatory compliance, contract strength, and tax efficiency.
Schedule a strategy session to review your project with a legal team specialized in Spanish development law.