Social Security embargo on a flat in Spain: what it means

When you check the nota simple (the Land Registry extract) of a property you're interested in, an embargo (seizure order) entry appears in favour of the Tesorería General de la Seguridad Social (TGSS, the Social Security treasury). Is that a serious problem? Does it invalidate the purchase? Can you buy the property and have the embargo disappear? Here's the practical explanation.

What a Social Security embargo is

The TGSS can seize property to secure payment of unpaid self-employed contributions, employers' contributions for their workers, or penalties. The embargo is entered in the Registro de la Propiedad (the Land Registry) and takes priority over later private creditors, although not necessarily over a mortgage registered earlier.

Is the embargo passed on with the purchase?

Yes, the embargo passes with the property. If you buy a property with a TGSS embargo without it being cancelled in the deed, Social Security can go after that property to collect its debt even though you're not the debtor. This is especially relevant with auction properties, where the original owner may have built up debts with Social Security over many years.

How it's resolved

There are two routes: (1) the seller pays off the debt with the TGSS before the deed (they get a debt certificate, pay and apply for the embargo to be lifted), or (2) part of the price is withheld in the deed of sale so that the notary or the gestoría (the agency handling the paperwork) uses it to pay the debt and apply for the embargo to be lifted. At a court auction it's the opposite of what many people think: the court only cancels the charge being enforced and the ones registered after it. Earlier ones—and a TGSS embargo can be one of them—remain in force and are taken on by whoever is awarded the property (arts. 669.2 and 674 of the LEC, the Ley de Enjuiciamiento Civil or Spanish Civil Procedure Act), so check the nota simple before bidding.

How much can be owed to the TGSS

A self-employed person who didn't pay contributions for 2-3 years can build up debts of €15,000-30,000 with surcharges and interest. A company with employees whose contributions went unpaid can build up much more. Always ask for the exact amount of the TGSS debt before making an offer.

Analyse charges before bidding: On RadarPro we include information on registered charges for auction properties. Also read the complete due diligence guide.