Fewer sales but more expensive: home sales plummet 10.2% in April while the price climbs 9.4%

To legally access a mortgage in Spain, there is no "closed list" of personal requirements in the law (for example, a specific minimum salary), but there is a set of obligations regarding information, solvency assessment, appraisal, and transparency that must be met for the loan to be validly formalized. The basic framework is set by the Law 5/2019, of March 15, regulating real estate credit contracts, its regulatory development, and banking transparency rules. On this common basis, each entity sets its own internal criteria (income level, job stability, maximum financing percentage, etc.), which are not legal but risk policy. Below is a summary of the main legal requirements organized by blocks.

1. Main regulatory framework

The core of the regulation is the Law 5/2019, of March 15, regulating real estate credit contracts, which strengthens the protection of natural persons (whether or not consumers) in loans secured by mortgages on housing or other residential properties. It is complemented, among others, by:
- Royal Decree 309/2019, of April 26, which partially develops Law 5/2019.
- Order EHA/2899/2011, of October 28, on transparency and protection of banking service customers, updated by subsequent regulations.
- Order ECE/482/2019, of April 26, which adapts banking advertising and transparency to Law 5/2019.
- Bank of Spain circulars on transparency and responsible lending, such as Circular 3/2022, Circular 4/2021, Circular 1/2021, and Circular 1/2020, which modify, among others, Circular 5/2012 (cited in the 2022 BOE).
- Transparency rules in payment and credit services, such as Order ECE/1263/2019, Order ETD/699/2020 and its erratum (BOE-A-2020-9342).

2. Pre-contractual documentation and information

Law 5/2019 establishes a reinforced pre-contractual phase. The bank must deliver in advance (at least 10 days before signing) a series of standardized documents, including:
- European Standardized Information Sheet (FEIN), with essential economic conditions.
- Standardized Warning Sheet (FiAE), highlighting sensitive clauses (variable rate, floor/ceiling, early maturity, etc.).
- Simulation of installments under different interest rate scenarios.
- Draft contract. These obligations derive from Chapter II of Law 5/2019 and are coordinated with Order EHA/2899/2011, which concentrates the basic transparency regulations on commissions, interest rates, communications, and banking advertising.

Additionally, notarial action is highly regulated by several instructions from the Directorate General of Registries and Notaries, which clarify how the notary must verify the delivery of documentation and the deposit of general conditions: Instruction of June 13, 2019, Instruction of June 14, 2019 (IT platforms), Instruction of June 14, 2019 (transition operations) and Instruction of December 20, 2019.

3. Solvency, income, and risk assessment

Solvency assessment is an express legal requirement. Law 5/2019 defines “solvency assessment” as the analysis of the prospects of fulfilling payment obligations and requires entities to carry it out before granting the loan, using sufficient information about the applicant's income, expenses, and debts. Order EHA/2899/2011, reinforced by Law 2/2011 on Sustainable Economy (cited in its preamble), introduces the principle of “responsible lending,” which the Bank of Spain circulars develop in detail.

In practice, this means the applicant must provide documentation proving identity and capacity (DNI/NIE), income (pay slips, income tax returns, employment history, self-employed accounts, etc.), previous debts, and family situation. The Risk Information Center is regulated and updated, among others, by Circular 1/2020 and Circular 1/2021, which emphasize the quality of risk information used to assess solvency.

4. Guarantees and property appraisal

For a loan to be classified as a mortgage on housing, the guarantee must be a residential real estate property. Law 5/2019 includes in the “total cost of credit” the valuation (appraisal) of the property when necessary to obtain the loan. The appraisal must be carried out by an approved appraisal company or service and is used to determine the maximum financeable amount (loan-to-value ratio).

Additionally, recent regulations such as Royal Decree-Law 19/2022 introduce Codes of Good Practice for situations of interest rate tension, which, although they do not set access requirements, condition how debts of certain vulnerable debtors are restructured. The Law 12/2023, on the right to housing and recent constitutional case law (STC 26/2025, among others) mainly affect foreclosures and lawsuits rather than the moment of granting but form part of the protective context for mortgage debtors.

5. Material transparency, notarial advice, and other requirements

Transparency is not only formal: Law 5/2019 requires that the borrower understands the economic and legal burden of the contract. To this end, it assigns the notary the function of free impartial advice before signing, verifying that deadlines and warnings have been met, especially regarding complex clauses (variable rates, early maturity, currency, etc.). This material transparency is articulated alongside Order EHA/2899/2011, which updates requirements on information about rates, commissions, linked services, and advice.

The law does not set a maximum age, minimum salary, or legal debt ratio, but it prohibits certain practices (mandatory tied sales, except for exceptions) and recognizes rights such as early repayment with limited compensation or conversion of foreign currency loans. Other aspects (maximum age at maturity, tax residence, type of employment contract) are left to each entity's risk policy, always within the framework of non-discrimination and responsible lending.

Additional references mentioned in the regulations: Law 18/2022, Erratum of Order EHA/2899/2011, STC 119/2018, Erratum Order ETD/699/2020.

The Notarial Statistical Information Center (CIEN) does not have regulatory powers regarding housing, but it does play a central role as a producer of official statistics and reliable data on the Spanish real estate market. Its function is to exploit the enormous notarial database (Unique Computerized Index) to measure housing sales, prices, mortgages, and other real estate transactions. These data are made available to public administrations, financial entities, and the public through the Notarial Statistical Portal and specific tools on properties. With this, CIEN has become a key observatory for designing housing policies and improving market transparency.

Nature and limits of its competencies in housing

From a legal-public perspective, CIEN does not set housing rules nor directly intervene in the regulation of prices, rents, or taxation. According to the institutional documentation of the notariat, its mission is to collect, process, and disseminate statistics based on authentic data from notarial deeds, not to dictate public policies. This is reinforced in the parliamentary context: in the Housing and Urban Agenda Commission of the Congress, CIEN is cited as a data source for market analysis, not as a decision-making body, in a hearing recorded in the XV legislature's Session Diary (Congress of Deputies).

Consequently, its “competencies” are statistical and informational: generating indicators, historical series, and data panels that others (ministries, autonomous communities, municipalities, Bank of Spain, public housing entities, etc.) use to make decisions.

Key statistical functions regarding housing

CIEN relies on the notariat's Unique Computerized Index to produce detailed real estate statistics. Its main functions in housing, according to official information from the notariat itself, are:

1. Measurement of housing sales: records the number of transactions by municipality, province, or autonomous community, with specific series on the evolution of housing sales accessible on its portal (housing sales statistics).

2. Recording the real price of transactions: offers the average price per square meter and its temporal and territorial variation, based on the deed price, not on advertisements or offers. These statistics are organized in the CIEN's property section (properties – CIEN).

3. Historical market analysis: the portal allows following trends from before the financial crisis to the present, with time series and comparisons explained in the general main statistics sections (main statistics).

4. Classification of mortgages linked to housing: CIEN collects information on the number of mortgages, average capital, interest rate, and loan purpose, integrated into its real estate and credit statistical tables.

5. Periodic data updates: the notariat has announced that CIEN has started monthly updates of its statistics, reinforcing its capacity for near real-time monitoring of the housing market (note on monthly update).

Tools and portals linked to housing

CIEN feeds the Notarial Statistical Portal and specific housing tools, presented as a public, free, and ad-free access route to real estate statistics:

– The CIEN homepage gathers the philosophy and scope of this statistical system (CIEN start), while the general notariat portal centralizes access to these tools (Notariat portal).

– The so-called “housing portal” or “notarial real estate portal” is a data visualization interface with maps, search engines, and calculators that directly uses CIEN statistics. Its operation and usefulness for market analysis are described in divulgative guides such as this technical explanation and in practical analyses for end users (disclosure article).

– CIEN also coordinates with other official statistics producers, such as INE, which recognizes the usefulness of its data to complement housing indicators (INE information).

Use in public policies and market transparency

In practice, CIEN's competencies in housing translate into three major contributions:

1. Technical support for housing policies: administrations such as the Ministry of Housing or public housing entities use its data to design housing acquisition programs, set maximum purchase prices, or size affordable rental parks, taking as reference real prices and transaction volumes.

2. Transparency and fight against speculation: by offering objective information on closing prices, sales, and mortgages, CIEN helps avoid overpricing in public operations and align cadastral and reference valuations with market reality. Free access to its statistics at properties – CIEN allows researchers, media, and the public to better monitor sector evolution.

3. Information and prevention for the public: through the notariat portal and associated materials, educational content is disseminated about risks in housing purchase, the importance of reviewing encumbrances, and utilities of contrasting area prices with official data (main statistics; usage guide).

In summary, CIEN does not decide on housing policy but has the essential competence of providing the most complete and reliable statistical “thermometer” of the Spanish residential market, on which normative, budgetary, and planning decisions are then based.

The incorporation of commercial companies in Spain is currently governed centrally by the consolidated text of the Capital Companies Act, approved by Royal Legislative Decree 1/2010, partially amended by Law 18/2022, on company creation and growth. This basic regulation is supplemented by special rules for specific types (for example, labor companies, regulated by Law 44/2015) and regulations supporting entrepreneurship and electronic incorporation, led by Law 14/2013. The incorporation and registration process, and the acquisition of legal personality, are mainly governed by the Capital Companies Act itself, complemented by the Commercial Registry Regulations and regulatory norms such as Royal Decree 421/2015. Below is a summary of the key regulations and what they specifically govern.

1. Basic regulation: Capital Companies Act (RDL 1/2010)

The Royal Legislative Decree 1/2010, of July 2, approving the consolidated text of the Capital Companies Act (BOE-A-2010-10544), is the core regulation governing the incorporation of:

a) Limited liability companies, public limited companies, and partnership limited by shares
The law defines these three as “capital companies” and that, regardless of their purpose, they have commercial character. It sets their capital requirements (for example, minimum capital of 1 euro for the LLC, with reinforced rules up to 3,000 euros, and 60,000 euros for the PLC) and determines the mandatory denomination (“S.L.”, “S.A.”, “S. Com. por A.”), domicile, and branch regime.

b) Incorporation by contract or unilateral act and public form
The text establishes that capital companies are incorporated by contract between two or more persons or, if single-member, by unilateral act. In any case, incorporation requires a public deed and registration in the Commercial Registry.

c) Deed of incorporation and bylaws
The law details the minimum content of the deed (identity of partners, intention to incorporate a capital company, contributions, bylaws, identification of administrators) and the essential content of the bylaws (name, purpose, domicile, capital and structure, management bodies, and decision-making regime). These points have been refined by successive reforms, including those of Law 18/2022 and Law 6/2023 (BOE-A-2023-7053).

d) Registration in the Commercial Registry and acquisition of personality
The law establishes that founding partners and administrators must submit the deed for registration in the Commercial Registry within two months; joint liability for damages is foreseen if they fail. With registration, the company acquires the legal personality corresponding to the chosen social type; before that registration, it is a “company in formation” and, if not registered, it may become an irregular company, with a general partnership or civil law regime.

e) Online incorporation and electronic means
After the reform of Law 11/2023, the Capital Companies Act incorporates definitions of “incorporation” and “electronic means” and regulates the entirely online incorporation of limited liability companies, including the use of electronic models and standard bylaws, as well as short qualification and registration deadlines (for example, deadlines of hours in certain cases, according to the new legal provisions).

2. Law 18/2022, on company creation and growth

Law 18/2022, of September 28, on company creation and growth (BOE-A-2022-15818) is the major recent reform aimed at facilitating company incorporation. It modifies, among others, articles 4, 5, and 23 of the Capital Companies Act and repeals the former article 4 bis, adjusting the minimum capital and successive formation regime of the LLC and strengthening simple incorporation tools. It also repeals Title XII of the Capital Companies Act (relating to listed companies) and adapts the framework to the objectives of reducing barriers and digitizing company creation processes.

3. Regulations supporting entrepreneurship and electronic incorporation

Law 14/2013, of September 27, on support for entrepreneurs and their internationalization (BOE-A-2013-10074) complements the company regime in everything related to:

– Entrepreneur Support Points (PAE) and Single Electronic Document (DUE) to process incorporations.
– Incorporation of limited liability companies with standard bylaws and electronic processing through the CIRCE system, with shortened deadlines for notarial authorization and registry registration (as described in the preamble of Royal Decree 421/2015).

Royal Decree 421/2015, of May 29 (BOE-A-2015-6520) develops this Law 14/2013 for LLCs: it regulates the specifications of the deed of incorporation and standardized format and coded field bylaws, the social name stock exchange with reservation, and the Notarial Electronic Agenda. This regulation is key for the electronic procedure and for the Commercial Registry and notaries to meet the reduced registration deadlines.

4. Special company forms

Certain company types have specific laws that complement the Capital Companies Act regarding incorporation. Notably, Law 44/2015, of October 14, on Labor and Participated Companies (BOE-A-2015-11071), which regulates particular requirements (percentage of capital held by workers, limits on participation of non-worker partners, etc.) and their registration in the Commercial Registry.

5. Commercial Registry and other complementary regulations

The technical regime of registry registration is completed with the Commercial Registry Regulations, approved by Royal Decree 1784/1996, of July 19, to which Royal Legislative Decree 1/2010 expressly refers. Additionally, the Directorate General of Registries and Notaries has issued operational criteria, such as the Instruction of May 18, 2011, on company incorporation and general meeting convening (BOE-A-2011-9085), applied in the context of streamlining measures introduced by Royal Decree-Law 13/2010.

Together, these regulations configure a system in which the commercial company is born by public deed and registration in the Commercial Registry, under the general discipline of the Capital Companies Act, reinforced and modernized by Law 18/2022 and by entrepreneurship and electronic processing regulations.