What the Land Registry gives you
Registering your property is insurance against future problems. Spain’s Ley Hipotecaria (the law that governs the Land Registry) presumes that registered rights exist and belong to their holder in the way the Registro de la Propiedad states. In addition, anyone who buys in good faith and for value, relying on what the Land Registry shows, is protected against claims based on titles that were not registered.
In general, registration is not compulsory. Ownership passes with the contract and delivery, not with registration. The mortgage is the exception: without registration it does not exist. In practice, though, registration is almost essential. A well-informed buyer will insist that the property is registered, because it is the only way to check that the seller really is the owner. And banks require it before lending against the property.
The Cadastre and your taxes
The Cadastre (Catastro) is an administrative register that comes under the Spanish Tax Agency (Hacienda). It holds the map-based description of your property, with its surface area, use, boundaries and neighbouring plots. It also sets two values that affect what you pay:
- The cadastral value (valor catastral), used to calculate municipal property tax (IBI), the plusvalía municipal (local tax on the increase in land value) and the deemed income charged in personal income tax (IRPF) on homes that are not your main residence.
- The reference value (valor de referencia), used as the minimum taxable base for property transfer tax and for inheritance and gift tax when you buy, inherit or receive a gift.
That is why you should check that the surface area and use recorded match reality. A mistake can make you pay too much, or cause problems when you want to sell or pass on the property. In addition, when you carry out works or change the use of a property, the law requires you to declare it to the Cadastre.
Bringing the Land Registry and the Cadastre into line
For years, the Land Registry and the Cadastre worked separately and each described the property in its own way. Since the 2015 reform of the Ley Hipotecaria, the law allows, and in many cases requires, them to be coordinated. When the Cadastre’s map-based description is added to the Land Registry, the Registry’s protection also covers the location and limits of the property, not just who owns it.
If the Cadastre is wrong, an alternative map-based description prepared by a surveyor can be filed. If it is the registered surface area that is wrong, there are procedures to correct it before the land registrar or the notary, with notice to the neighbouring owners so they can object. When the problem is a genuine dispute over where the boundary runs, what you need is a boundary demarcation (deslinde), which I explain on the boundaries, segregations and horizontal division page.
Unregistered properties or a broken chain
In the Axarquía there are many properties that have never been registered, or that passed from parents to children without a public deed (escritura). For the first group there is first registration (inmatriculación), which can be done before a notary with two linked title documents or with a specific procedure. For the second, when a link is missing in the chain of owners, there is a procedure to restore the chain of title (reanudación del tracto sucesivo). Neither is a mere formality: each requires specific documents and notice to third parties.
Having everything properly registered and aligned maximises the value of your property, protects it against third parties and simplifies a future sale or inheritance. Every case is different, so the best thing is to review yours. You can start with an online consultation.