LAW 32/2006 - article 3 of the said act clearly defines the different roles of the persons or companies in the building process

The party acquiring the real-estate property, regardless of whether or not said party is a resident of Spain, is obliged to withhold 3% of the agreed sales price and pay it to the tax office. For the seller, said withholding shall be deemed payment at source of the capital-gains tax corresponding to the conveyance of the property.

A NEW LAW has been enacted in November 2006 - Law 36/2006 dated 29th November. From 1st December no property purchase can be registered in the land Registry office without the NIE of all the parties concerned in a property transaction.

A new swift debt recovery procedure was approved by the European Parliament on 12th December 2006

This new law is likely to affect property transactions and particularly off-plan property purchases. Any abusive clause in a contract will be invalid regardless of the law applicable to the contract if the consumer (or purchaser) is resident in Spain and the object covered in the contract is situated on Spanish territory. All ambiguous, unclear or inexact clauses will also be interpreted in the consumer’s favour.

This law was finally passed by Spanish Parliament on 10th May 2007 and aims to unify the legal system of land development throughout Spain. Some of the aspects envisaged are: formal regulations establishing the rights and duties of land owners, citizens and politicians in terms of property development, urban town planning and protected land; greater restrictions on declassifying protected spaces; and new requirements such as compulsory environmental reports for the development of urban areas.