In Spain, shared ownership of real estate is not uncommon—it’s the norm. Siblings, spouses, and even former friends often find themselves co-owning a house or apartment. But what happens when their paths diverge and no one wants to divide up the square meters? In 2026, the procedures for splitting jointly owned property (extinción de condominio) have become even more relevant: divorce rates are rising, and inheritance disputes show no sign of slowing down. Spanish law offers several scenarios, each of which can turn into either a good deal or a headache.
In this article, we break down how the mechanism for dividing indivisible property works, what options exist, what paperwork you’ll need, and why sometimes it’s wiser to settle things over coffee than to meet in court. We’ll pay special attention to tax nuances and share real-life stories from Spaniards who have had to untangle their property ties.
If you think it’s simple, you’re mistaken. Even with full agreement between parties, bureaucracy can be full of surprises. And if compromise is out of the question, the process can drag on for years and end up costing more than the property itself.
What is property division
When it comes to indivisible property, such as an apartment or a house owned by several people, the question arises: how to resolve the situation if someone no longer wants to be a co-owner? In Spain, there is a procedure called extinción de condominio – termination of joint ownership. This is not just a formality, but a legally significant process that allows one or more owners to exit the ownership group by transferring their share to another participant or a third party.
Most often, this step is taken after a divorce, inheritance division, or disagreements among relatives. Each co-owner has the right to demand the termination of joint ownership if the property cannot be physically divided. Importantly, this concerns truly indivisible assets—you can’t cut an apartment in half, though a plot of land can sometimes be split.
Two options: negotiation or litigation
In Spain, there are two main ways to terminate joint ownership: by mutual agreement or through the courts. The first option is the fastest and most cost-effective. Co-owners negotiate who will buy out the other’s share and on what terms, evaluate the property’s value, finalize the transaction with a notary, and register the changes with the Property Registry. Everything goes smoothly as long as everyone cooperates.
But if compromise proves impossible, a legal saga begins. One of the co-owners files a lawsuit for division of property (división de cosa común). The court assesses the value of the asset, determines the shares, and if the parties cannot reach an agreement, orders a public auction. In the end, the property is sold to the highest bidder, and the proceeds are split among the former co-owners. This scenario is rarely advantageous—the property is often sold below market value, while legal fees can consume a significant portion of the profits.
Documents and Formalities
To formalize a property division by mutual agreement, you’ll need a minimum set of documents: identity documents for all parties, property ownership papers, a market value report (appraisal), and proof of payment method. The transaction is arranged through a notary, after which the changes are registered in the Property Registry. In court proceedings, the list of required papers expands: you’ll need evidence that amicable division is impossible, documents confirming rights to the property, and share calculations.
In 2026, Spanish notaries report a rise in these types of transactions, especially in large cities like Madrid, Barcelona, and Valencia. The reason is simple: more people prefer to reach an agreement rather than waste time and money in court. However, even when both sides are ready, bureaucratic procedures can still delay the process by several weeks.
Taxes and Expenses
Many mistakenly believe that property division is simply the transfer of a share to another person. In reality, the process is more complex. In Spain, this operation is subject to the Actos Jurídicos Documentados (AJD) tax, calculated based on the value of the transferred share. The rate depends on the region and can range from 0.5% to 1.5%. Meanwhile, the capital gains tax (plusvalía municipal) is generally not charged if the division is between relatives or spouses.
However, if someone makes a profit as a result of the transaction, they must declare it for personal income tax (IRPF). It’s also important to factor in expenses for the notary, registration, and property appraisal. On average, according to Spanish real estate agents, the paperwork for dividing an apartment in 2026 costs about 1.5–2% of its market value.
Life situations
In practice, property division most often occurs in three cases: between spouses after divorce, between siblings during inheritance, and when a mortgage is involved. In the first scenario, the parties can include division terms in the divorce agreement, which significantly simplifies the process. If it concerns inheritance, a deadlock often arises: one heir wants to sell their share, while the others do not. In such cases, court intervention becomes necessary.
A special case is dividing an apartment with a mortgage. Here, everything depends on the bank: for one of the former spouses to become the sole borrower, the lender’s consent and a new mortgage agreement (novation) are required. Sometimes, it’s easier to sell the property, pay off the loan, and split what remains. In any case, legal and bank consultations are essential.
If you weren’t aware, Spain registers over 30,000 cases of joint property division for housing every year. This procedure is regulated by the country’s Civil Code and is considered one of the most in-demand notarial services. In recent years, Spanish notaries have reported a rise in requests related to property division, especially in major cities and tourist areas. Experts recommend consulting with lawyers and appraisers in advance to avoid unpleasant surprises and not lose money on taxes and fees.
