How to Participate in an Online Property Auction in Spain

Purchasing properties through online auctions in Spain can be a highly effective investment strategy. Here are some of the key benefits:

1. Lower Acquisition Costs: Properties sold at auction can be significantly below market value, offering 20-40% savings.

2. Wide Selection: Auctions include a variety of properties, from residential homes to commercial spaces.

3. Streamlined Legal Process: Many properties come with clear legal statuses, reducing complications.

Ready to dive in? Here’s a guide to help you navigate the process of participating in an online auction in Spain.

Step 1: Register on the Official Auction Website

Visit the official auction website: https://subastas.boe.es/. To register, the easiest method is using your digital certificate. If you're a foreigner and don’t yet have a digital certificate, you can request one via the Fábrica Nacional de Moneda y Timbre.

Once obtained, install the certificate on your PC to access the auction platform. If you encounter issues, I’m happy to assist—just reach out at gnicotra@urbei.es.

Step 2: Start Searching for Properties

Once registered and logged in, you can start searching for properties. Use filters to narrow down your options:

• Province: Choose the region you're interested in.

• Auction Type: Filter by the type of auction (e.g., judicial, tax).

• Auction Status: Select “celebrandose” to view currently active auctions.

• Property Type: Narrow down by specific property types like homes, garages, or commercial buildings.

• Other Filters: You can refine your search by address, auction ID, or even auction start and end dates.

This will help you locate properties that meet your investment goals.

Step 3: Analyse Auction Details

Once you've identified a property, delve into the auction’s specifics. Two key sections to pay attention to are General Information and Bienes (Property).

In General Information, you will find:

• The auction’s unique ID, start and end dates.

• The cantidad reclamada (outstanding debt), auction value, and appraisal value (tasación).

• Value of the auction: This is a critical piece of information for the next step of analysis, as it will help you calculate potential returns.

• Minimum bid, bid increment values, and deposit amounts (5% of the auction value).

Make sure to review the downloadable documents, such as the Edicto (public notice), the Certificado de Cargas (debt certificate), and possibly a Nota Simple (a summary of property status).

In Bienes, you’ll find the property’s details, such as its IDUFIR and cadastral reference. You can also see whether the property is occupied or vacant. In tax auctions, there may be additional information like a cadastral screenshot or property photos.

Step 4: Conduct a Feasibility Analysis

Before placing any bids, it’s essential to conduct a feasibility analysis to assess whether the auction represents a sound investment.

This step often requires the guidance of someone who is well-versed in Spanish property law, especially Article 670 of the Civil Procedure Act (L.E.C.). It’s crucial to understand which debts you’ll inherit with the auctioned property. As per Article 668 of the L.E.C., you will need to assume responsibility for all debts predating the auction’s judicial process.

A portfolio manager like myself can assist you in this analysis, helping ensure that you’re making an informed decision by fully understanding the property’s legal and financial obligations.

Additionally, while some debts will be removed after you win the auction, such as those following the legal procedure, you’ll always be responsible for property taxes (IBI) and homeowners' association fees.

Step 5: Determining Your Maximum Bid

In my next article, I’ll explain the process to calculate the maximum bid you should offer to achieve your desired return on investment. Stay tuned for this essential guide to help you win the property while keeping your financial goals intact.

Final Thoughts

Navigating property auctions in Spain can seem daunting, but with the right guidance and thorough research, you can unlock incredible investment opportunities. Stay tuned for my next article, where I’ll cover the final steps of bidding and post-auction processes.

In the meantime, if you have any questions or need assistance, don’t hesitate to reach out to me at gnicotra@urbei.es. I’m available in English, Spanish, and Italian and would be happy to help you on your property investment journey.