23 October 2025 · Neus Vallara

Basic legal advice before investing in real estate

23 October, 2025
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Real Estate
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Neus Vallara

!Inversión inmobiliaria con seguridad jurídica en España.

Our real estate market remains one of the most attractive in Europe. In recent years, cities such as Madrid have consolidated their position as preferred destinations for real estate investment, mainly due to the capital’s economic dynamism and a tax regime favourable to investors.

However, this dynamism should not lead us to overlook that, beyond the price or location of the asset, any decision to invest in real estate must necessarily be accompanied by legal solidity. An apparently simple transaction can be jeopardized by an expired license, an undetected registered charge or a contract whose clauses fail to prevent future contingencies.

In this article we offer three key pieces of advice that every investor should consider before investing in real estate.

Tip 1: Conduct real estate Due Diligence

Before investing in a property, the first step is to know its legal status through a Due Diligence process. A Due Diligence is an exhaustive analysis of the legal and tax situation of a property, resulting in a report that identifies contingencies and provides recommendations for acquisition.

Due Diligence allows verification of ownership and encumbrances, planning status, granted licenses, outstanding debts, lease contracts, possible pre-emption rights in favour of third parties, etc.

It is difficult to carry out a real estate transaction without a Due Diligence, as its outcome may determine the investor’s decision and the conditions of the operation.

If you wish to learn more about what a Due Diligence entails, which aspects are analysed, when it is advisable to perform it, and its advantages, you can read our recent blog article on real estate Due Diligence.

Tip 2: The importance of adequate legal advice

Legal guidance when investing in property is not optional – it is the foundation of a secure investment. Investing in real estate involves decisions that combine various factors, including legal and tax considerations. Each of these can affect the success and profitability of the transaction. Therefore, specialised legal support throughout the process is not an added cost, but an essential element for capital protection. Preventive advice is always more efficient than reactive intervention.

The legal framework that can affect a real estate investment is extensive, either directly related to the asset or to the transfer transaction itself. It is therefore essential to have quality legal advice in civil, commercial, planning, real estate and tax law. A misinterpretation of the applicable regulations may result in delays or even the loss of the asset.

Specialised legal advice allows risks to be anticipated and control mechanisms established from the outset.

Moreover, it is important to have this legal assistance from the beginning to the end of the transaction – from the initial negotiation between the parties, through the Due Diligence process, to the negotiation and formalisation of the various contracts governing the transaction.

At MES Advocats, we have a team of lawyers specialised in the various branches of law necessary to ensure the success of a real estate investment.

Tip 3: Plan the taxation and legal structure of the investment

An inadequate tax plan can significantly reduce the final profitability of the transaction. Each type of real estate operation may have different tax implications, depending on the nature of the asset acquired (residential, building land, etc.) and the parties involved (non-residents, individuals or legal entities, etc.). It is therefore essential to carry out prior tax planning based on the legal structure of the transaction.

The tax and legal advisers must work in coordination. Decisions on the legal structure have a direct impact on taxation, and vice versa. At MES Advocats, our legal and tax advisory teams work together to ensure the success of our clients’ investments.

Conclusion: invest safely with a long-term vision

In an economic environment favourable to real estate investment, the complexity of regulations demands legal rigour.

Thorough Due Diligence, competent legal advice, and sound tax and legal structuring are the tools that ensure that the expected profitability is achieved without setbacks.

About MES Advocats

The Real Estate Law team at MES Advocats has extensive experience advising real estate servicers, investment funds, family offices, developers and individuals on complex real estate transactions.

We accompany our clients from the analysis and structuring phase through to closing, ensuring legal certainty, efficiency and strategic vision. You can contact us through this link.

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