Whether you are buying a property, have health concerns or are simply making provisions for the future, a power of attorney could save you a great deal of time, money and aggravation

It is hard to understate how useful it can be to grant a power of attorney, so that someone is authorised to resolve administrative procedures for you in Spain when you are away or you need someone to act for you because you are incapacitated.

It can not only save you a great deal of inconvenience, but can protect your assets and your loved ones from a great deal of legal difficulties or expenses should you be unable to act for yourself, for whatever reason.

As such, it is important to make this sort of provision in advance, especially if travel or health issues could foreseeably make it more difficult or impossible to do so in the future.

Obviously this has to be someone you trust, such as a legal representative or family member, because you are enabling them to make decisions on your behalf but, depending on your situation, there are a variety of different types of power of attorney to cover different circumstances.

It is actually very simple and inexpensive to arrange a power of attorney, as you only need to visit a notary with your NIE (foreigners’ identification number) and pay a fee of approximately €25 to €50. And it is equally simple to cancel a power of attorney at any notary in Spain.

Types of power of attorney

Depending on your motives, there are various types of power of attorney and a notary can advise you which one is appropriate.

The most common are: Power for lawsuits (Poder para pleitos), with which you allow your representative to go to court on your behalf; Power to manage assets (Poder para administrar bienes), which enable your representative to manage your assets such as money, inheritance and things you own (but not mortgages and the sale or purchase of property); General power (Poder general), a wider power to manage your affairs including the sale of property; and Special powers (Poderes especiales), to manage a specific one-off activity, such as buying or selling goods, a bank transfer or accepting an inheritance.

If you need a Spanish power of attorney to be recognised in other countries, firstly it has to be certified by an additional process called an apostille, which is also done by a notary, and secondly you will require a sworn translation of the document.

The importance of acting early

In order to grant a power of attorney, you must have full mental capacity, which means you must be able to understand the decision you need to make, why you need to make it, and the likely outcome of your decision.

This is why the nonprofit Age in Spain emphasises the importance of acting as soon as possible if you have been diagnosed with dementia and you may lose your mental capacity in the future, because if your mental capacity is in doubt, you will not be able to grant a power of attorney.

They warn that otherwise you will have to apply to the courts for a “Curatela” to be appointed to act on your behalf. The judicial authority will determine your needs and which specific acts this representative can carry out.

The legal basis of this course of action is detailed in articles 215 to 303 of the Spanish Civil Code (Código Civil Español).

Age in Spain note that some people will be able to make decisions about certain things but not others, or their ability to make decisions may change from day to day.

They also emphasise that needing more time to understand or communicate doesn’t mean you lack mental capacity.

“Having dementia doesn’t necessarily mean that someone is unable to make any decisions for themselves,” the association explains.

“Where someone is having difficulty communicating a decision, an attempt should always be made to overcome those difficulties and help the person decide for themselves.”

Furthermore, it is not true that a spouse (either in marriage or a civil partnership) will automatically be authorised to deal with your bank account and pensions and make decisions about your healthcare, should you lose the ability to do so.

This is another reason why arranging a power of attorney now, while you are able to, will ensure that someone can act on your behalf in circumstances beyond your control.

Power of attorney for real estate transactions

Another situation in which a power of attorney can simplify and streamline complex procedures, is for real estate transactions.

In this case, the expert legal services at Heniam & Associates, based in the Region of Murcia, explain that a trusted representative, known as an attorney-in-fact, can be appointed to act on your behalf, thus enabling you to make informed decisions and navigate the Spanish real estate market more efficiently.

This empowers the attorney-in-fact to handle various legal, administrative, and financial matters, saving the grantor time, effort, and logistical challenges with tasks such as property searches, negotiations, contract signings, and even property registration.

It is particularly useful for individuals who are unable to be physically present in Spain during critical stages of the real estate transaction.

Appointing a local attorney-in-fact who is proficient in Spanish and well-versed in Spanish real estate practices will minimises the risk of any misunderstandings over legal processes and overcome language or cultural barriers.

“The attorney-in-fact can communicate with local authorities, negotiate with sellers, and ensure that all documents and contracts are accurately translated and understood,” Heniam & Associates explain. “The attorney-in-fact can handle paperwork, attend meetings, and undertake necessary actions promptly, reducing delays and administrative burdens.”

This efficiency can also avoid unnecessary travel expenses or potential errors that could result in additional legal fees.

Why you can trust an attorney-in-fact

It is important to note that the attorney-in-fact has a fiduciary duty to act in the grantor’s best interests and must exercise their powers responsibly and ethically.

They therefore have a legal obligation to diligently protect the grantor’s rights, negotiate favourable terms, and safeguard their interests throughout the real estate transaction.

For trusted and recommended advice on what sort of power of attorney would best suit your needs and circumstances, contact the dedicated professionals at Heniam & Associates.

They will support you throughout the process and enable you to navigate the complexities of the Spanish real estate market with confidence.

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