Buying or inheriting a property in Spain together with another person — whether a partner, family member, or friend — is very common, especially in Tenerife. However, co-ownership can lead to legal complications when one party wants to sell, rent, or divide the property, and the other does not. Understanding how Spanish law regulates shared ownership is essential to avoid future disputes.
How does shared ownership work in Spain?
When two or more people own a property together, they become co-owners (copropietarios), each holding a specific share of the property. This share can be 50/50, 60/40, or any other proportion agreed upon. If the ownership percentage is not specified in the title deed, Spanish law assumes that each person owns an equal share.
All co-owners must agree on major decisions, such as selling, renting, renovating, or mortgaging the property. If there is disagreement, Spanish law provides specific legal mechanisms to resolve it.
Can one co-owner sell their share of the property?
Yes. A co-owner can sell their individual share, but not the entire property without the consent of the others.
However, before selling to a third party, Spanish law grants the remaining co-owners a right of first refusal (derecho de tanteo y retracto). This means that they have priority to buy that share under the same conditions offered to an outside buyer.
This rule helps prevent strangers from entering into shared ownership without the consent of the other owners.
What happens if co-owners disagree on what to do with the property?
When co-owners cannot reach an agreement — for example, if one wants to sell and the other does not — any of them may request the division of the common property (acción de división de cosa común).
If all parties cooperate, the division can be handled amicably before a notary, where the property is sold, and each party receives their share of the proceeds.
If there is no agreement, the matter must go to court, where a judge can order the sale of the property at public auction and distribute the funds accordingly.
At Atlantic Law Tenerife, we always aim to resolve these situations through negotiation first, but we are also experienced in handling judicial divisions of property when necessary.
How does inheritance affect shared ownership?
Inheritance is one of the most common reasons for shared ownership in Spain. When several heirs inherit the same property, they all become co-owners until the inheritance is formally divided (adjudicación de herencia).
If one heir wants to sell their part and another refuses, the same legal mechanism applies: a division of property can be requested either amicably or judicially.
It’s often best to resolve these matters through legal mediation or with a clear agreement drafted by a lawyer to maintain family harmony and ensure fairness.
Can co-owners rent the property?
Yes, but all co-owners must agree to rent the property, as this decision affects everyone’s rights and financial interests.
If one co-owner rents it out without the consent of the others, the unauthorised rental can be legally challenged, and compensation may be claimed for loss of use.
Before renting jointly owned property, it’s advisable to draft a written agreement specifying the terms, rent distribution, and responsibilities.
What is a co-ownership agreement, and why is it useful?
A co-ownership agreement (acuerdo de copropiedad) is a private contract between the owners that defines:
-
Each owner’s percentage of ownership.
-
How expenses (mortgage, taxes, maintenance) are shared.
-
Rules for the use or rental of the property.
-
The procedure if one party wishes to sell or leave.
This agreement helps prevent misunderstandings and future disputes. It is especially useful for unmarried couples, friends, or foreign investors who buy property together.
Can a foreign co-owner manage everything from abroad?
Yes. If one of the co-owners lives outside Spain, they can grant a power of attorney to a lawyer. This allows the lawyer to handle any sale, division, or registration process on their behalf — without the need to travel to Spain.
At Atlantic Law Tenerife, we frequently represent UK and European clients who share ownership of property on the island, managing the entire process
