Property Ownership in Spain: Freehold, Leasehold, and Horizontal Property Explained
Understanding how property ownership works in Spain is essential for overseas buyers. While the UK system is based on freehold and leasehold tenure, Spain’s legal model is different, with most properties sold as freehold and governed by a framework known as propiedad horizontal (Horizontal Property Law) in shared developments. This page explains what that means in practice.
Are apartments in Spain sold as freehold or leasehold?
In Spain, apartments are almost always sold as freehold. Each owner holds full title to their individual unit, i.e. owning the freehold of the space they live in. Regarding communal areas such as hallways, lifts, gardens, and the land beneath the building, the apartment owner also owns a proportional share of these elements through what is known as Spain’s Horizontal Property Law (Ley de Propiedad Horizontal).
Importantly, this legal structure also applies to urbanisations and residential developments of houses with communal elements, such as private roads, shared gardens, swimming pools, or gated access. In these cases, each homeowner owns their house and private plot outright, but also shares legal ownership of the communal areas and becomes part of the community of property owners (comunidad de propietarios). Under the Ley de Propiedad Horizontal, each owner is responsible for their share of maintenance costs relating to the communal elements.
Leasehold, as understood in the UK, is extremely rare in Spanish residential sales. Where leasehold contracts do exist, they tend to be limited in scope and duration, often used in long-term rental arrangements rather than property purchases. Although Spanish law allows lease terms to be freely agreed, residential leases typically run for five years, with renewal options. This structure is far more common in the rental market, not in sales.
Unless clearly stated otherwise, you can safely assume that an apartment or house advertised for sale in Spain, including in Mallorca, is being sold freehold.
