From Development to Long-Term Value
Once a real estate project is completed, foreign and institutional investors face critical decisions:
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Should we lease and hold?
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Refinance and reinvest?
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Sell the asset or units immediately?
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Transfer it to a REIT or fund vehicle?
Each option involves legal, tax, and operational consequences — and requires ongoing legal oversight.
🧰 Legal Services for Real Estate Asset Management
Legal counsel supports asset managers and property investors with:
| Task | Legal Role |
|---|---|
| 📄 Lease structuring | Commercial or residential agreements, tenant obligations |
| 🧾 Tax reporting | Annual filings, VAT compliance, municipal property taxes |
| 🏢 Property management contracts | Outsourcing with liability clauses and service KPIs |
| 🔁 Refinancing | New loan negotiations and registration |
| ⚖️ Dispute handling | Unpaid rent, eviction, or property damage |
| 🏢 REIT structuring | SOCIMI compliance and transfer planning |
📜 Leasing & Rental Strategy
| Lease Type | Notes |
|---|---|
| 🏬 Commercial lease | Requires detailed clauses for rent escalation, sublease, repairs |
| 🏠 Residential lease | Governed by LAU (Ley de Arrendamientos Urbanos), tenant-favored rules |
| 🏨 Operator agreements | Long-term hospitality leases with revenue-sharing models |
Spanish lease law protects tenants, so contracts must clearly address:
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Payment default remedies
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Deposit and guarantee structures
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Use limitations
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Dispute resolution clauses (court vs arbitration)
🏛️ Holding & Refinancing the Asset
Investors may choose to:
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Hold long-term and collect rent
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Refinance to free capital for new projects
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Transfer to a holding company or REIT (SOCIMI)
Legal support covers:
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Mortgage registration or subrogation
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New financing due diligence
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Debt covenant compliance
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SPV asset contribution or revaluation
This is where legal, tax, and financing strategy must align.
📈 Exit Strategy Options in Spain
| Strategy | Legal Considerations |
|---|---|
| 🏢 Direct sale | Notary deed, capital gains tax, land registry transfer |
| 🧳 Asset sale via SPV | Transfer of shares instead of property title — fewer taxes, faster process |
| 💶 Contribution to SOCIMI (REIT) | Requires compliance with SOCIMI regime and Spanish tax rules |
| 🏗️ Portfolio refinancing | Legal review of liens, covenants, and valuation |
Exiting efficiently means minimizing:
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Capital gains tax
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Municipal Plusvalía tax
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Notary and registration costs
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Buyer-side due diligence complications
🧾 Tax Planning for Asset Exit
Smart exit planning often involves:
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Holding via Spanish SPV with double tax treaty benefits
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Selling shares rather than title (when capital gains are lower)
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Timing the sale after a holding period to qualify for exemptions
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Structuring lease-to-own or rent-to-buy models to defer taxes
Legal advisors can run simulations and select the best exit path under Spanish and international law.
💬 FAQs – Asset Management & Exit in Spain
Can I sell the company that owns the property instead of the asset itself?
Yes — this is common. It may reduce taxes and speed up the transaction, but it requires clean company records and legal due diligence.
How are property management services regulated?
In Spain, these are typically outsourced via service agreements. Clauses should address liability, insurance, reporting, and termination.
What is a SOCIMI?
A REIT-like Spanish vehicle offering tax benefits for long-term rental portfolios. Legal setup and compliance are strict but efficient for large holdings.
🧠 Summary: Legal Needs for Asset Holding & Exit
| Area | Legal Focus |
|---|---|
| 📃 Lease agreements | Tenant protection and enforceability |
| 🧾 Tax compliance | Local, national, and treaty-optimized |
| 🏢 Refinancing | Mortgage structuring and lender negotiation |
| 💼 Sale strategy | Share vs asset sales, REIT planning |
| ⚖️ Disputes | Tenants, partners, or public authorities |
📞 Let’s Plan Your Asset Strategy in Spain
Whether you’re holding a single development or managing a portfolio across Spain, your asset management and exit plan should be as strategic as your entry.
Our team advises international developers and investors on leasing, compliance, refinancing, and high-efficiency exits.
Schedule a consultation to plan your Spanish asset management and exit strategy with confidence.