Europe: Spanish notary rules could unfairly affect foreign lawyers and breach EC regulations

Spain could face enforcement action by the European Commission (EC) following the recent introduction of rules that have created a monopoly for its domestic notary profession - at the expense of foreign lawyers - the EC indicated this week.


Under regulations introduced last autumn, documents involving the transfer of property in Spain may only be registered if they are authorised by Spanish notariados, not foreign notaries. The rules mean that many British clients who own a property in Spain will be unable to sell the property without travelling to the country to sign papers.


The EC warned Spain in November that the new regulations are in breach of European law, following a complaint by dual-qualified English/ Spanish lawyer Manuel Martin, founder of Manuel Martin & Associates in London. The EC has informed Mr Martin that it is preparing to launch an infringement procedure.


Mr Martin said: 'The [regulations are] a clear breach of the basic principles of the European Union, and [it] amounts to a ruthless and unprecedented attempt to strengthen the monopoly of Spanish notaries by preventing competition. Foreign notaries have been drafting documents in the same way [as Spanish notaries] for hundreds of years.'


He added: 'Elderly English clients who wish to sell their Spanish homes and may not be able to travel will now have to consider using a power of attorney, with the risk of abuse that involves. The situation is causing very serious damages to consumers, most of whom are British, and to the legal profession in England and Wales.'


The rules were introduced by the Dirección General de los Registros y del Notariado (DGRN) in Madrid, the regulatory body for Spanish notaries. The organisation did not respond to requests for comment.


The row follows calls last week for the EC to investigate the 'protectionist' regime operated by notaries in France (see [2006] Gazette, 12 January, 4). French notaires have special status because of their responsibilities for collecting taxes on behalf of the government. It is understood that new rules imposed by the DGRN are part of a move to achieve a similar status for notaries in Spain. Spanish notaries do not currently collect taxes.