Frequently Asked Questions
Your Questions Answered
If you’re dealing with overseas property debt, you probably have a lot of questions — and you’re not alone. Our FAQs break down the most common issues we see, from negative equity and mortgage arrears to selling under Power of Attorney, so you can understand your options and take the next step with confidence.
About Us
EU Property Solutions are a diverse and experienced team of finance and debt experts that specialise in property associated debt in Europe and across the world.
We have helped clients for over a decade and achieved life-changing settlements in over a dozen countries
EU Property Solutions was formed in the shadow of the 2008 financial crash. We had assisted a client in dealing with his properties in both the UK and the Republic of Ireland. This client had a Negative Equity property in Spain and asked if we could assist him in disposing of the property and negotiating a settlement. We delved into this and after lengthy negotiations and learning more about the Spanish legal system we successfully resolved this issue. We then flew out to Spain where we met with our current Spanish legal team and this product developed from there. Another client we assisted in the UK asked if we could also deal with his property in Cyprus. Again, after lengthy research we were finally able to negotiate a deal with the bank and when we flew out to Cyprus to sign off the deal with the bank, we met up with our current Cypriot Barrister and both products have gone from strength to strength.
Our team consists of 6 members based over our 2 offices. 1 office in Leeds that homes James Bell (Managing Director), William Bell (Solvendo Group Chief Operating Officer) and Natalie Pritchard (Case Manager) The team in Belfast consists of Terry Bell (Chairman), Ionagh Clawson (Business Development Manager) and Eoin Carlin (Marketing Executive).
We deal with following issues:
- Assist clients who have Negative Equity in a property abroad
- Secure escape route for a Negative equity property
- Secure a settlement on outstanding debt
- Reach a conclusion with the banks to settle the debt on a full and final basis
- Protect UK assets
- Protect people involved in litigation with foreign banks.
- We commercially assess the affordability of a property
- Deal with vulture funds and loan sales
- Mortgage Arrears
- Management fees / community fees
- Title Deed issues in Cyprus
- Probate issues for foreign property.
- Being pursued abroad and in the UK in respect of holiday home debts
- Provide clients with clarity on their actual position.
There are several ways to contact EU Property Solutions;
Call us – +44 (0) 330 822 3591
Email us – [email protected]
Find us at – Park House, Leeds or Bedford Street, Belfast.
Text us – 07736 966 264
Visit our website – https://eupropertysolutions.com/contact/ to speak to us on live chat or fill in our contact form.
We have many case studies and client testimonials. We have written testimonials along with video testimonials from previous clients. Additionally, we have a number of clients who are prepared to take telephone calls to discuss their experiences with EU Property Solutions. Case studies and testimonials can also be found on our website. You can use this link to view these https://eupropertysolutions.com/testimonials/
EU Property Solutions are a diverse and experienced team of finance and debt experts that specialise in property associated debt in Europe and across the world. We have helped clients for over a decade and achieved life-changing settlements in over a dozen countries. We have a 100% success rate and have saved our clients over £17 million to date.
Each case is taken on its own merit, but our typical fee structure is a retainer fee paid upon appointment and a percentage-based success fee that becomes due when a settlement has been reached. Generally, our success fee is based on a percentage of the savings achieved.
EU Property Solutions have introduced a No Win No Fee initiative. This is to make our services more accessible and affordable for those seeking solutions to their foreign property mortgage challenges. With this initiative, you will no longer need to make a retainer payment to access our services (subject to conditions). Instead, we will align our fees with your success. You will only pay for our services if we successfully resolve your foreign property issues.
Our Case Manager Natalie speaks fluent Spanish and English. We also have a bilingual legal team and have translators that we work with on a daily basis.
We have legal teams in both Spain and Cyprus. Our Spanish Legal team are based in Cordoba and our Cypriot team are based in Larnaca.
Our many client testimonials should reassure clients that EU Property Solutions are a trustworthy company. Our results speak for themselves. As advised, we have a bank of previous clients who would be willing to take a telephone call to confirm this.
At EU Property Solutions we have a 100% success rate. We do not take on a case that we cannot achieve a successful outcome for our client.
No Win, No Fee
It is exactly as it sounds. If we do not win your case, you do not pay us a fee.
If we win your case, you pay us an agreed percentage as our fee. If you lose, you do not pay anything.
Typically, there are no upfront costs associated with a No Win No Fee agreement, however there may be court fees or Notary fees that need to be paid.
If your case is unsuccessful then you do not need to pay us anything.
There is a criteria that will need met in order to be suitable for a No Win No Fee agreement. This will be determined when the facts of your case are established. On our floor clause product, all cases are taken on a No Win No Fee basis.
For Spanish floor clause claims this will be 30% if you have your original mortgage documents. If you do not have your original mortgage documents, then this will be a 40% fee. For Negative Equity cases, this will be determined when we have a full outline of your case. It will differ depending on level of debt, status of case and if there is any legal procedures started.
For Negative Equity cases these can differ depending on the status of case, the lender and what stage any legal action is at but typically, these can be resolved anywhere between 3-12 months. For floor clause causes these can be 12-24 months.
We can consider No Win No Fee arrangements for any of our products as there is criteria that needs to be met in order to be eligible for this.
Traditional fee structures would see a retainer fee being paid upon appointment, with a success fee becoming due and owing when the case has been resolved. A No Win No Fee structure means there is no upfront cost to you.
You should notify us immediately as soon as you have reached this decision. If there have been any associated costs with us dealing with your case to this point i.e. legal or notary fees that we have covered, you will be responsible for covering these.
No, you will not be responsible for paying any fees if you lose your case.
There are no risks to you by entering a No Win No Fee agreement. You do not pay anything unless your case has been won.
The agreed fee or percentage of a fee will be outlined in our Service Agreement which will be signed by you. In the event our fees will not be paid, we will seek to recover our fee on the basis of the signed Service Agreement.
No, all of our cases have a designated case manager who will work these cases in line with our Service Level agreements (SLA). Traditional fee structure cases will not be prioritised over No Win No Fee cases.
Pursued in the UK
You need to take immediate action. If you have received a debt collection notice from a UK debt collector, then your foreign lender has taken steps to have any action transferred to the UK. You should seek advice as to how you should deal with this matter. EU Property Solutions will review your situation, request all documentation and provide a tailored solution to address your issue.
You have the right to carry out verification checks on both the party collecting the debt and the legitimacy of the debt itself. If the lender has gone through the correct processes to pursue you in the UK, then you need to seek advice and deal with the debt.
You confirm this by contacting the original lender if they have instructed another company to deal with the debt. You can then verify their FCA (Financial Conduct Authority) registration and also check online forums such as Trustpilot.
Provided the foreign lender has obtained the correct judgement or order then yes, the UK courts can enforce these orders.
You need to seek advice so that validation can be sought from both the debt collector and the original lender. Contracts and statements can be requested to verify legitimacy of the claimed debt.
Yes, if a lender goes through the correct legal processes, then foreign orders or judgements can travel into the UK. The UK courts can then enforce the orders, and this can include putting a charge on properties or other assets.
Ignoring a debt claim can lead to the following:
- Additional fees and interest being added to the claim
- Court proceedings in the foreign country
- UK enforcement of foreign judgements
- Negative impact on your Credit score
- Bankruptcy proceedings
Despite Brexit, foreign property debts can still be enforced in the UK, provided the correct procedures are followed.
If you petition for Bankruptcy in the UK, you can include the foreign property debt.
EU Property Solutions can review your full situation and provide a tailored solution on dealing with your foreign property debt issue whether it is being pursued in the country of origin or in the UK.
We charge a retainer fee due and payable upon appointment of our services. We then charge a success fee which is typically a percentage of savings. The success fee is payable upon an agreement with your lender.
Once a court order has been granted, the originating creditor can apply for the order to be moved to the UK. When this happens, the order can be enforced in the UK.
UK credit agencies do not automatically register foreign debts on your credit file unless the creditor uses an UK based debt collection agency to recover the debt or a UK court judgement has been issued against you.
This will depend if the debt has been registered on your UK credit file. If your creditor has used a UK debt collection agency or a court judgement has been issued against you then this will appear on your credit file and can affect your ability to obtain a mortgage or credit.
Yes, both parties can be held liable for the debt and both with be pursued for the full debt.
Negative Equity in Spain
The financial crash of 2008 caused well established banks like Lehman Brothers to collapse. Other banks such as Allied Irish Bank as and the Royal Bank of Scotland went under state control. Countries including Cyprus and Spain were savagely hit as the whole banking industry was shored up by their State Bank. This caused property prices to plummet and those with high mortgages suddenly found themselves in Negative Equity.
Negative equity is when the mortgage on a property is higher than the property’s current market value.
In order to sell your Negative Equity property, you must negotiate with the bank. It is important to understand that you are still liable for the full amount owed on your mortgage. After you sell your property, you will still owe the bank money, this is known as a shortfall.
There are several options for you are experiencing Negative Equity in Spain however it is important that you deal with the issue promptly and properly and seek advice on how to do this. You need to keep the issue in the country of origin and not allow it to travel cross jurisdictionally where your assets in the UK can be at risk.
Handing the keys back to this bank must be done via the Spanish legal process. Simply sending the keys back to the bank does not clear you of your financial obligation. Your bank may now pursue you for any outstanding shortfall and can obtain an order through the courts which can then become enforceable in the UK.
You need to act promptly and seek advice on how to address your situation. At EU Property Solutions we will obtain all the facts of your case and then provide a tailored strategy to suit your situation.
Unfortunately, this is a situation faced by many who have purchased property abroad in the hope of having an investment property for retirement. We can review both the Will and Probate and advise your best route to resolve this issue.
The options available to you will depend on your individual situation and what your intentions are for the property. If you want to dispose of the property, you will still be liable for any shortfall that arises.
Unpaid community fees can result in legal action against you from the management company. The management company can get a charge registered against your property which will mean you have to settle the debts owed to them. Like any secured charge, this can then be enforced.
There are several additional costs that need factored in when considering selling a Negative Equity property in Spain. These include:
- Mortgage cancellation fee
- Notary’s costs
- Estate Agents fees
- Community fees and utility bills
- Solicitors’ fees
- Mortgage shortfall
Remortgaging a Negative Equity property is extremely difficult as banks are not willing to lend on a property that has no equity as they are unable to secure their position fully by way of a charge for the full outstanding mortgage.
A bank will initiate repossession proceedings against your property due to mortgage arrears. Typically, this will take around 9-12 months, however you need to be mindful that interest and penalties will continue to accrue making your overall position worse.
There are a number of solutions available, and each case is reviewed and a strategy tailored for your specific situation. There are many factors to consider when developing a strategy. This includes, your financial position, the level of the outstanding debt and your intentions for the property. EU Property Solutions will complete a full due diligence on your situation and provide options to you.
A vulture fund is a company that purchases distressed loan books. They then will take on all the legal rights to the loan and pursue you using all methods available to them to recover the debt. If you have received a demand from a fund demanding payment of your loan you need to act promptly. EU Property Solutions specialise in dealing with funds and have negotiated some great settlements with them.
There are a few options if you cannot sell your property, but this depends on your position overall. If you do not want to keep the property, then you can wait for it to be repossessed, and EU Property Solutions can assist you with dealing with the shortfall. If you wish to keep the property you can try and rent it out or renegotiate the terms of your mortgage, however if the property is in Negative Equity, it will be unlikely that your lender will allow this.
EU Property Solutions can review the Divorce Decree and establish who is responsible for dealing with the property. The options available to you will vary depending on the terms set out in the Decree.
Yes, estate agents can sell a property that is in Negative Equity. However, as well as selling the property at a loss, you will then be responsible for paying the estate agents costs. Estate Agents will also find that these properties sit for a lengthy period of time before selling.
Yes, but this will need to be done correctly following the Spanish legal system. If done incorrectly, you can be pursued later down the line for any shortfall that arises. You will have to be in a position to access some funds in order to resolve the issue.
This can vary anywhere between 3 months and 12 months depending on the bank, status of the case and if any legal proceedings have started.
Each case is taken on its own merit and quoted accordingly depending on the status of the case. Typically, we charge a retainer fee which is due and payable upon appointment. A success fee is due and owing when we reach a final conclusion. This is usually a percentage of the savings achieved. We do offer a no win no fee in some cases. Terms and conditions apply.
You need to act promptly in order to protect your UK assets and keep any legal action in the country of origin. Any court orders can come into the UK and your UK assets will then be at risk.
Floor Clauses
A floor clause (or “cláusula suelo”) is a condition in many Spanish mortgage contracts that sets a minimum interest rate, meaning your payments won’t drop below a set level even if market rates fall.
This is the Spanish term for “floor clause,” referring to the lowest rate of interest that can be applied to your variable-rate mortgage.
No. While floor clauses were commonly used in variable-rate mortgages, not every lender included them. You’ll need to check your mortgage agreement or get professional help to verify.
Some major Spanish banks did include them and were later required to refund affected customers. Each mortgage is different, so individual review is necessary.
Claims may go back to mortgages signed as early as 2001. A 2016 EU court ruling confirmed borrowers could recover overpayments going back to the start of the clause.
No. Floor clauses are only relevant to variable-rate mortgages. Fixed-rate loans are not subject to changing interest rates.
Yes. Even if you modified your mortgage terms, a valid claim can still exist if the original mortgage included a floor clause.
Because Spain’s Supreme Court and the European Court of Justice ruled that many of these clauses were not properly disclosed, making them unfair. As a result, refunds are owed for excessive interest paid.
You’ll need to review your mortgage documentation. If you’re unsure, EU Property Solutions can examine your documents and assess your eligibility for free.
Once all documents are provided, a determination is typically made within 24 hours.
Yes, provided the original loan included a floor clause and overpayments were made.
You can still make a claim. Any refund may be applied to reduce your arrears.
Your claim may still be valid. The obligations usually transfer to the acquiring institution.
In most cases, yes. Both signatories will likely need to be involved in the claims process.
You may still have legal grounds. We can review and, if appropriate, escalate the matter to court.
No formal deadline exists yet, but starting your claim soon is advisable to avoid legal changes.
Generally, no. Floor clause claims usually apply to residential mortgages only.
Yes. Many non-residents have successfully claimed refunds, and we handle the process remotely on your behalf.
If your claim is unsuccessful, you don’t pay our fee. The only cost would be the notarisation and apostille of your Power of Attorney.
Yes. The Power of Attorney process usually costs around £300–£400 for legalisation.
That depends on your mortgage amount, interest rate, and duration. We calculate your potential refund after reviewing your documents.
Yes, compensatory interest is typically included.
Refunds are issued in Euros. You can receive funds to a Euro account or convert them to Sterling at current exchange rates.
It authorises our legal team in Spain to represent you fully throughout the claims process.
Yes. We’ll prepare the bilingual document, guide you through signing, and ensure its properly notarised and apostilled.
If the bank does not respond within three months or rejects your claim, legal proceedings may be initiated.
No. Our legal team in Spain will represent you fully using the Power of Attorney.
The claim is still valid. We’ll direct the claim to the institution that took over your original lender.
Most cases resolve within 9 to 12 months. Once approved, refunds are typically issued within 3 months.
We provide regular updates throughout, especially at key stages like document receipt, claim filing, and resolution.
- Mortgage deed and related documents
- Proof of payments
- Passport or ID and NIE number
- Signed Power of Attorney
We can help you request a copy from your lender or assist in retrieving necessary documentation.
It’s required for identification in Spain and for processing claims related to Spanish mortgages.
It’s on your Spanish tax, immigration, or property documents. You can also request a copy from the Spanish authorities.
You can still make a claim as long as you are the legal heir or executor. Documentation of your relationship and inheritance rights will be needed.
No. It only relates to refunding past overpayments.
Not usually. Unless you’re in arrears or in dispute with the bank, your creditworthiness should not be affected.
Polaris World
Polaris World was a Spanish property developer known for building residential communities and golf resorts, particularly in the Murcia region. It focused on marketing properties to overseas buyers, especially those from the UK and Ireland.
Its rise was driven by Spain’s booming property market in the early 2000s, the allure of golf resort living with courses linked to Jack Nicklaus, and strong international marketing campaigns aimed at second-home buyers.
The company’s downfall was the result of:
- The 2008 global financial crisis
- Excessive property development
- Shrinking foreign demand
- High debt and weak financial controls
Polaris World filed for pre-bankruptcy protection in 2010, although financial issues were evident much earlier. Over the following years, its assets were gradually sold or transferred.
Yes, many buyers suffered financial loss due to:
- Incomplete or poorly delivered developments
- Sharp falls in property values
- Legal disputes over undelivered property features or contractual breaches
Some were taken over by banks, private investors, or new developers. While a number of these resorts continue to operate, others were left in varying states of completion or repair.
In many cases, no. Although certain projects were completed and occupied, others lacked the promised amenities or were left unfinished.
Yes, properties remain for sale, often at discounted prices. However, buyers should perform careful due diligence, as quality and maintenance vary significantly across sites.
Polaris World is now often viewed as a cautionary tale from Spain’s real estate boom—a warning of the dangers of overambitious development and speculative buying.
Selling Property in Spain
Yes, as a non-resident you can legally sell property in Spain. There are no restrictions on ownership or sale of property for foreign nationals, including post-Brexit UK citizens or Irish nationals. However, as a non-resident, you must comply with specific legal and tax obligations in Spain. These include appointing a fiscal representative, ensuring all property taxes are up to date, and obtaining necessary certificates and clearances before the sale.
While it is not legally required, hiring a qualified Spanish solicitor is strongly advised. They handle crucial steps such as:
- Reviewing or drafting the private purchase contract
- Ensuring all municipal taxes and utility bills are paid
- Handling Plusvalía and Capital Gains Tax
- Representing you via Power of Attorney if you’re not in Spain
- Assisting with fund repatriation
This can prevent legal pitfalls and ensure compliance with Spanish laws.
Here is a detailed list of documents typically required:
- Title Deed (Escritura Pública) – Proof of ownership.
- Nota Simple – A land registry extract showing current legal status.
- Energy Performance Certificate (Certificado de Eficiencia Energética) – Mandatory for sale.
- Habitation Certificate (Cédula de Habitabilidad or Licencia de Primera Ocupación) – Proves the property is fit for occupancy.
- IBI Receipt (Impuesto sobre Bienes Inmuebles) – Annual local property tax receipt.
- Community Fees (if in a community) – Proof you’re up to date on shared expenses.
- Utility Bills – To show no outstanding debts.
- NIE Number – Foreigners’ Identification Number (mandatory for all property transactions).
- Power of Attorney – Optional, if someone is handling the sale for you.
As a non-resident, you are subject to a flat 19% Capital Gains Tax on the net profit (sale price minus allowable deductions). UK and Irish citizens do not benefit from main residence exemptions unless they are Spanish tax residents. Deductions may include:
- Purchase costs (notary, registry, legal fees)
- Improvements (with invoices)
- Estate agency fees
- Plusvalía tax
You must file a Modelo 210 tax form with the Spanish Tax Authority to report and pay this tax.
Yes. The Spanish law requires that 3% of the sale price be withheld by the buyer and paid directly to the Spanish Tax Authority on your behalf. This is to cover potential Capital Gains Tax. After the sale, you can file a return to calculate your actual CGT liability and apply for a refund of any excess withheld.
This retention is mandatory for non-resident sellers.
Not significantly for the act of selling property, but there are a few indirect effects:
- UK citizens are now considered non-EU residents, which limits some tax benefits and visa freedoms.
- Capital Gains Tax is still 19%, the same as for EU citizens.
- You cannot defer or roll over CGT by reinvesting in another Spanish property unless you are a Spanish tax resident.
- Irish citizens, being EU citizens, retain all EU-associated benefits including tax reliefs applicable to residents in the EU.
Expect the following costs when selling:
- Estate Agent Fees: 3%–6% + VAT, usually paid by the seller.
- Legal Fees (Solicitor): Typically, 1% of sale price.
- Capital Gains Tax: 19% on profit for non-residents.
- Plusvalía Municipal Tax: Based on increase in land value since purchase.
- Mortgage Cancellation Fees: If applicable, includes notary and registry fees.
- Energy Certificate: Approx. €100–€300, depending on property size.
- Non-resident tax representation (optional): Some appoint a fiscal rep annually.
Total costs can range between 7% and 12% of the sale price depending on complexity and profit made.
Plusvalía Municipal is a local tax levied on the increase in the cadastral (land) value of the property since your purchase. It is separate from CGT and calculated by the town hall (Ayuntamiento).
Seller usually pays, though it can be negotiated.
The amount depends on:
- Length of ownership
- Location and land value
Payable within 30 days of sale completion.
Recent rulings in Spain allow sellers to appeal this tax if no gain in value occurred.
Yes. If you cannot be in Spain for the sale, you can grant a Power of Attorney (Poder Notarial) to a lawyer, family member, or trusted person. This can be done via:
- A Spanish notary
- A notary in the UK/Ireland (apostilled for use in Spain)
Your representative can:
- Sign contracts and deeds
- Cancel mortgages
- Pay taxes
- Receive sale funds
This is common and simplifies the process if you’re abroad.
If you are tax resident in the UK or Ireland, you may also have to declare the gain there:
In the UK, declare capital gains on your Self-Assessment. You may offset tax paid in Spain via the UK-Spain Double Taxation Agreement.
In Ireland, similar rules apply under its DTA with Spain.
It’s crucial to speak with a tax adviser to avoid double taxation and ensure full compliance.
The timeline can vary widely:
- Listing to Offer: 1 to 6 months (longer in rural areas)
- From Offer to Completion: 6 to 10 weeks
Delays can arise from:
- Missing paperwork (e.g. habitation certificate)
- Buyer’s mortgage process
- Legal or tax complications
Well-presented and correctly priced properties in popular areas tend to sell faster.
Yes, you can freely transfer proceeds abroad. However:
- Funds must be sent through a Spanish bank and often need to be traceable to prove money laundering compliance.
- You may be required to justify the source (e.g., a copy of the sale deed).
It’s advisable to use a foreign exchange specialist rather than a traditional bank. This can:
- Save up to 3%–4% on currency conversion
- Provide better rates
- Help with timing and compliance
Always confirm the process with your solicitor or bank in Spain before the transfer.
Buying Property in Spain
Yes. There are no restrictions on foreigners buying property in Spain, including UK and Irish citizens. Brexit did not affect property ownership rights. UK citizens may face additional considerations related to residency, taxation, and length of stay (see FAQ #7), but property purchase remains completely legal and relatively straightforward.
Irish citizens, as EU nationals, retain full rights under EU law to buy, live in, and work in Spain without additional barriers.
No. You do not need to be a resident to purchase property in Spain. Non-residents—whether EU or non-EU—can legally own property. However, there are differences in:
- Tax treatment
- Financing limits
- Legal obligations, especially if you plan to rent the property or stay long-term
Being a resident (more than 183 days/year) can affect your tax residence status, which impacts income tax and wealth tax liabilities.
Yes, all foreigners buying property in Spain must obtain an NIE (Número de Identificación de Extranjero).
This is a fiscal identification number used for:
- Property purchases
- Paying taxes
- Opening a bank account
- Setting up utilities
- Signing legal contracts
You can apply for it at:
- Spanish police station
- A Spanish consulate in the UK or Ireland
- Through a legal representative or gestor in Spain
Processing can take from a few days to a few weeks, so it’s best to apply early.
Yes, non-residents are eligible for Spanish mortgages. Key points:
- Spanish banks typically lend 60% to 70% of the property’s appraised value (not purchase price) for non-residents.
- EU residents (e.g., Irish citizens) may get slightly better terms than non-EU buyers.
- Interest rates range from 3% to 5% depending on the lender and product.
You’ll need to show income proof, tax returns, bank statements, and existing debts.
Foreign currency exchange rates and transfer fees should be factored into your financial planning.
A mortgage broker or bilingual solicitor can help navigate offers and find the best deal.
Expect to pay 10–15% of the purchase price in additional fees and taxes. Breakdown:
- Property transfer tax (ITP):
- 6%–10% on resale properties, depending on the region
- VAT (IVA) and Stamp Duty (AJD):
- 10% VAT + 1.5% AJD on new builds
Notary and Land Registry Fees:
- Approx. 1–2% combined
Legal fees:
- 1–2% of the purchase price
Gestoría (admin service) fees:
- Optional but often used (around €300–€500)
NIE application and translations:
- Variable (€100–€300)
Always request a full cost estimate in advance from your solicitor or advisor.
Strongly recommended, though not legally required. Your lawyer (abogado):
- Conducts due diligence on the property (ownership, debts, planning permission, etc.)
- Reviews private purchase contracts (contrato de arras)
- Assists with NIE application
- Explains tax implications
- Manages payments and protects your interests in case of issues
Never rely solely on estate agents or use a lawyer who represents both buyer and seller. An independent, English-speaking lawyer with no ties to the seller is best.
For UK citizens (now non-EU):
- You may stay 90 days in any 180-day period in the Schengen Area without a visa.
- For longer stays (e.g., to live permanently or retire), you’ll need a residency visa, such as:
- Non-lucrative visa (for retirees or remote workers)
- Golden visa (requires a property investment of €500,000+)
- Digital nomad visa (if working remotely for a non-Spanish company)
Irish citizens retain full EU freedom of movement, meaning they can live and work in Spain without limitation or visa.
While it’s possible to buy directly from a seller, most foreign buyers use estate agents. Benefits include:
- Easier navigation of the language barrier
- Property search assistance
- Help with viewings, negotiation, and paperwork
However, be aware:
- Agents typically work on behalf of the seller
- Commissions (usually 3–6%) are often included in the sale price
Always verify all claims with your own solicitor and ensure all agreements are in writing.
Yes, but short-term rentals (under 30 days) are regulated regionally. You may need a tourist license, especially in popular areas like:
- Andalusia (e.g., Costa del Sol)
- Balearic Islands (e.g., Mallorca, Ibiza)
- Canary Islands
- Valencia region (e.g., Alicante)
To rent legally, you may need to:
- Register the property
- Install safety measures (fire extinguisher, smoke alarms)
- Display the license number in all advertisements
Fines for illegal rentals can be high (up to €40,000). Also, rental income is taxable in Spain and may need to be declared in the UK or Ireland under double taxation treaties.
Yes, both residents and non-residents must pay certain Spanish taxes:
Annual taxes include:
- IBI (Impuesto sobre Bienes Inmuebles): Local property tax
- Non-resident income tax: Even if you don’t rent out the property, a “deemed income” is taxed annually (typically 19–24%)
- Basura (rubbish collection tax): Small municipal tax
If renting:
- Rental income is taxed at 19% for EU residents (including Irish citizens)
- 24% for non-EU residents (including UK citizens post-Brexit)
It’s advisable to appoint a fiscal representative to file tax returns on your behalf.
Yes. Common ownership structures include:
- Joint ownership (e.g., spouses or family): Each party is named in the title deed
- Company ownership (usually via a Spanish SL or UK Ltd): Used for large investments, privacy, or inheritance planning
- Pros of buying as a company may include:
- Tax benefits, depending on usage
- Easier inheritance planning
- Possibility to offset expenses against income (if renting)
However, corporate ownership has ongoing administrative costs and tax implications, so professional advice is essential.
Spanish inheritance laws apply, even if you’re not a resident. Spain has:
- Forced heirship rules (though these may be bypassed under EU regulations if you declare your home country’s law should apply)
- Spanish inheritance tax (IHT): Varies by region and relationship (spouse, child, etc.)
- No automatic joint tenancy or “right of survivorship” as in the UK/Ireland
To simplify things:
- Consider making a Spanish will (alongside your UK/Irish will)
- Name heirs clearly and declare which national law applies
Without a will, your heirs may face legal delays and higher costs.
Negative Equity in Cyprus
Negative equity in Cyprus happened due to a combination of a property bubble, overly optimistic lending practices, the 2013 financial crisis, and a sharp decline in the value of properties. These factors caused many homeowners to owe more than their properties were worth, leading to widespread negative equity.
Negative Equity in Cyprus is when the outstanding mortgage on a property is higher than its current market value.
Yes, you can sell a Negative Equity property, however you will be liable for any remaining shortfall. A shortfall is the difference between the sale proceeds and the outstanding mortgage.
There are options available to you however these vary depending on your situation and what your intentions are for the property. If you wish to remain the owner of the property you need to continue to make your monthly mortgage payments. If you no longer wish to keep the property, there are solutions for you but you need to seek advice and do this in the correct way.
Handing keys back to the lender must go through the correct legal process and therefore it is possible that you are still the registered owner of the property. It is important that you seek advice on how to resolve this matter and protect your position in the UK.
You need to act promptly and seek advice on how to address your situation. At EU Property Solutions we will obtain all the facts of your case and then provide a tailored strategy to suit your situation.
Unfortunately, this is a situation faced by many who have purchased property abroad in the hope of having an investment property for retirement. We can review both the Will and Probate and advise your best route to resolve this issue.
The options available to you will depend on your individual situation and what your intentions are for the property. If you want to dispose of the property, you will still be liable for any shortfall that arises.
There are many additional costs involved when selling a Negative Equity property in Cyprus. These include:
- Developer fees
- Estate Agent costs
- Legal Fees
- Bank Fees
- Stamp duty
- Any outstanding shortfall.
Yes. There are no restrictions on foreigners buying property in Spain, including UK and Irish citizens. Brexit did not affect property ownership rights. UK citizens may face additional considerations related to residency, taxation, and length of stay (see FAQ #7), but property purchase remains completely legal and relatively straightforward.
Remortgaging a Negative Equity property is extremely difficult as banks are not willing to lend on a property that has no equity as they are unable to secure their position fully by way of a charge for the full outstanding mortgage.
Yes, repossession is an option for lenders when there are mortgage arrears. Initially the bank will contact you to set up a solution to address the arrears. If this cannot be resolved, then the bank can proceed to initiate legal action to repossess the property.
There are a number of solutions available, and each case is reviewed and a strategy tailored for your specific situation. There are many factors to consider when developing a strategy. This includes, your financial position, the level of the outstanding debt and your intentions for the property. EU Property Solutions will complete a full due diligence on your situation and provide options to you.
A vulture fund is a company that purchases distressed loan books. They then will take on all the legal rights to the loan and pursue you using all methods available to them to recover the debt. If you have received a demand from a fund demanding payment of your loan you need to act promptly. EU Property Solutions specialise in dealing with funds and have negotiated some great settlements with them.
There are a few options if you cannot sell your property, but this depends on your position overall. If you do not want to keep the property, then you can wait for it to be repossessed, and EU Property Solutions can assist you with dealing with the shortfall. If you wish to keep the property you can try and rent it out or renegotiate the terms of your mortgage, however if the property is in Negative Equity, it will be unlikely that your lender will allow this.
EU Property Solutions can review the Divorce Decree and establish who is responsible for dealing with the property. The options available to you will vary depending on the terms set out in the Decree.
Yes, estate agents can sell a property that is in Negative Equity. However, as well as selling the property at a loss, you will then be responsible for paying the estate agents costs. Estate Agents will also find that these properties sit for a lengthy period of time before selling.
Yes, but this will need to be done correctly following the correct legal procedures. If done incorrectly, you can be pursued later down the line for any shortfall that arises. You will have to be in a position to access some funds in order to resolve the issue.
The timescales on these processes vary depending on lender, current status of case and if there has been any legal action started, however we advise that these cases can take anywhere between 3-12 months. When your situation is clear to us we may be in a position to provide an approximate timeframe to completion.
EU Property Solutions charge a retainer fee, this is due and payable upon appointment of our services. A success fee is charge when a resolution has been achieved. Typically, this is a percentage of savings.
Yes. You can be chased in the UK for a Cypriot debt following the correct legal processes. An order can be made in Cyprus, which can then travel cross jurisdictionally to the UK which can then be enforced.
Title Deeds & Trapped Buyers
A trapped buyer is someone who has:
- Legally purchased a property,
- Paid all or a substantial part of the purchase price,
- Registered the sales contract with the Land Registry (in many cases),
Yet, they cannot obtain the legal title deed due to factors beyond their control. These often include:
- Developer’s failure to repay a mortgage on the land,
- No final building/completion certificate issued,
- Ongoing planning violations,
- Disputes or liens on the land.
This issue affects thousands of buyers, particularly foreign nationals who purchased off-plan properties between 2000 and 2014.
Despite fulfilling your financial obligations, several legal or administrative complications can prevent title deed transfer:
- Mortgage or charges on the land by the developer’s bank (the title cannot be split or transferred until the mortgage is settled or released).
- Missing completion certificates or final approval for the project from local authorities.
- Illegal construction or deviations from approved building plans.
- Failure to divide the property legally (e.g., a building with multiple apartments not yet legally subdivided).
- Developer bankruptcy or non-cooperation, which can paralyse the process.
In essence, you don’t legally own the property until the title is transferred into your name, even if you’ve paid in full.
Introduced in September 2015, Law 139(I)/2015 aims to resolve the long-standing title deed backlog and help trapped buyers secure ownership.
Key provisions:
- Allows buyers to bypass the developer and apply directly to the Land Registry for title transfer.
- Enables the transfer even if there are existing developer debts/mortgages, as long as the buyer has fulfilled their contract.
- Developers or banks may object within a set timeframe, but objections must be justified (e.g., unpaid purchase amounts or fraudulent contracts).
It was a major legal reform, but implementation has been slow, and many cases remain unresolved due to bureaucratic complexity.
Yes – under Law 139(I)/2015, if:
- You have a registered sales contract with the Land Registry,
- You’ve paid the full amount,
- Necessary planning and building permissions were issued for the development,
Then you can file a “trapped buyer application” with the Land Registry. If all legal criteria are met, the Land Registry may transfer the title directly to you – even if the developer refuses or is insolvent.
You will typically need:
- Copy of your sales contract, stamped and registered at the Land Registry
- Proof of full payment, such as bank receipts or payment confirmations
- Copy of the property’s planning permit, building permit, and architectural plans
- Tax clearance certificate from the Inland Revenue Department (proof no outstanding taxes)
- Any correspondence with the developer or bank related to encumbrances
The Cyprus Land Registry is central to the implementation of Law 139(I)/2015. Its responsibilities include:
- Verifying the buyer’s eligibility to apply for a deed transfer,
- Checking planning and building permit compliance,
- Notifying creditors (such as banks with mortgages on the land),
- Reviewing objections, if any,
- Approving and executing the transfer of the title deed to the buyer, where applicable.
However, the system is under-resourced, and delays are common.
You can, but it’s difficult and carries legal and financial risk. Without a title deed:
- Buyers may not get bank financing,
- Your buyer also becomes a “trapped buyer”,
- You could be liable if issues arise from the developer’s financial or legal obligations.
If you choose to sell, most lawyers recommend including protective clauses in the sale agreement to reduce future liability.
Yes. If your developer:
- Is undergoing bankruptcy, or
- Is being investigated for fraud, or
- Has creditors with active claims,
It can delay or freeze title deed transfers. Even with the 2015 law, the Land Registry must notify stakeholders and give them time to object. Courts may need to resolve ownership or debt disputes before the deed can be issued.
If the land is heavily mortgaged, and the mortgage is greater than the value of your property, the bank may refuse to release the property.
In this case:
- You can negotiate with the bank to pay part of the debt or a settlement fee to release your unit,
- You may have to go to court to argue for equitable relief under the 2015 law.
Unfortunately, banks often have strong legal standing due to prior registration of the mortgage.
Strongly recommended. A specialised Cyprus property lawyer will:
- Ensure your application is properly submitted,
- Check for hidden liabilities,
- Monitor communication with the Land Registry and banks,
- Represent you in any legal disputes that arise.
Trying to do this process without legal help could result in serious delays or even the loss of legal rights.
Usually not, because a final completion certificate is required for legal subdivision and title deed issuance.
However, in some limited cases:
- If the building is illegal or unsafe, authorities may refuse title issuance outright.
- The authorities may accept an irregularity certificate (for minor deviations),
- You may obtain title if you legalise the structure through corrective measures and pay any fines.
Main costs include:
- Transfer Fees (paid to Land Registry):
Based on property value,
- Rates reduced or even waived for certain transactions (e.g., first-time buyers, VAT-paid properties).
- Stamp Duty (paid when contract is signed):
- €0–€5 per €1,000 depending on price bracket.
- VAT or Capital Gains Tax (if reselling):
- VAT only applies if buying new property from developer,
CGT applies on profit at 20% but with allowances (especially for non-residents).
There may also be legal, registration, and documentation fees.
It varies:
- Straightforward cases: 6–12 months.
- Trapped buyer cases: 1–5 years depending on objections, developer debts, and planning approvals.
- Contested or court cases: can take over 5 years.
The main delays are due to bureaucratic inefficiencies, developer non-cooperation, or court proceedings.
In most cases, no, especially if:
- You have a valid contract of sale, and
- You can show payment and registration with the Land Registry.
However, there is risk if:
- The developer goes bankrupt, and the bank tries to seize the land,
- The contract was never registered or was registered late.
Legal protection is better if your contract was registered within the required timeframe (60 days from signing).
Swiss Franc Mortgages
This is a type of mortgage loan issued in Swiss Francs (CHF), rather than the borrower’s local currency. Such loans were offered to take advantage of Switzerland’s comparatively low interest rates.
In the 2000s, Cypriot banks promoted Swiss Franc loans to international buyers as a cost-saving option due to the lower interest rates in Switzerland compared to local borrowing rates.
Buyers were attracted by seemingly lower monthly repayments. However, they often weren’t fully made aware of the risks tied to currency exchange fluctuations.
The primary problem was the rising value of the Swiss Franc after the 2008 crisis. This resulted in borrowers facing significantly increased repayments when converted back to their home currency.
The crisis turned the Swiss Franc into a “safe haven” currency, which appreciated substantially. As a result, borrowers’ repayments rose sharply—sometimes by 30–50%—even if they hadn’t missed payments.
Many borrowers report that they weren’t clearly informed about the currency risks. In some cases, they didn’t even realise their loans were issued in a foreign currency.
Common issues included:
- Significant financial and emotional stress
- Increased monthly repayments
- Negative equity
- Difficulty refinancing or selling properties
- Legal action from lenders
Yes. Numerous legal claims were brought by borrowers who alleged mis-selling, inadequate disclosure of risks, and failure to properly explain the nature of these complex financial products.
Some cases have been resolved through settlements or court decisions, but many remain ongoing. Authorities in Europe have acknowledged the widespread nature of the problem.
- Borrowing in foreign currencies carries real risk unless income is in that currency
- Understanding the full terms of a mortgage is essential
- Independent advice should always be sought when purchasing abroad
- Transparency in lending is crucial