In short: anyone with a recognised digital ID can bid for a home on the BOE Auction Portal, but since April 2025 you need far more capital up front.
- Since 3 April 2025, the deposit is 20% of the appraisal value, with a minimum of €1,000 (it used to be 5%).
- If you win, you have 20 business days (previously 40) to pay the balance, counted from the close of the auction.
- The auction lasts at least twenty calendar days and bids can only be placed online.
- The average discount in 2024-2025 was around 28% on appraisal (Subastae, an industry portal).
Since Law 19/2015, every judicial auction in Spain, including Spanish property auctions of homes, has been run electronically through the BOE Auction Portal (subastas.boe.es), the online platform of the Boletín Oficial del Estado, Spain's Official State Gazette. This guide focuses specifically on residential auctions: the same portal also lists vehicle auctions, tax-office seizures and notarial sales, which are not covered here. What has changed most since many guides on this topic were last updated is the procedure itself: Organic Law 1/2025, in force since 3 April 2025, has sharply increased the money you have to put at risk just to be allowed to bid, and any guide still quoting a 5% deposit is out of date.
The deposit is no longer 5%: since April 2025 it is 20%
Before the reform, the upfront deposit to bid in a judicial property auction was 5% of the appraisal value, the figure still circulating in much of the content on this topic. That changed with Organic Law 1/2025 of 2 January, on measures to make the Public Justice Service more efficient, in force since 3 April 2025: the deposit to take part in auctions of real estate rises to 20% of the appraisal value, with a minimum of €1,000, compared with 10% for movable assets (Sepín legal blog; Subastanomics). The court clerk in charge of the enforcement (the LAJ, Letrado de la Administración de Justicia) can adjust that percentage up or down depending on the circumstances of the case, but 20% is now the general benchmark, not the exception. This reform applies to proceedings started on or after 3 April 2025, under the law's ninth transitional provision; earlier proceedings keep their original rules.
The other change that hits a bidder's pocket: the time to pay the balance of the price if you win has been cut from 40 to 20 business days, and that period starts running automatically from the close of the auction, with no need to wait for a personal notice from the court. In practice, this leaves less room to raise the outstanding capital than before the reform.
What a judicial auction of a home is in Spain
A judicial home auction is the procedure by which a court publicly sells a seized or mortgaged property and uses the proceeds to pay off the debt that triggered the enforcement. There is no private seller and no estate agent: the property is awarded to the best bid and the transfer is formalised by a court award decree (decreto de adjudicación), not by a purchase deed negotiated between the parties.
Since Law 19/2015 the whole procedure is electronic and published on the BOE Auction Portal, with mandatory digital identification to bid and an upfront deposit that must be lodged before taking part. The winning bidder acquires the property as it stands, with any charges not cancelled in the proceedings and whatever possession situation exists at the time, and that is the essential difference from a conventional purchase.
How the procedure works, step by step
1. Find the home auction on the Portal
All judicial, notarial and administrative auctions in Spain are published on the BOE Auction Portal. To find home auctions specifically, filter by asset type "inmueble" (real estate) in the portal's search tool. The listing includes the appraisal value, known charges and the opening and closing dates for bids.
2. Identify yourself
To take part you need a digital certificate issued by the FNMT (Spain's Royal Mint, which issues official digital certificates) or another recognised certification provider, or a Spanish electronic ID card (DNI electrónico) with a compatible reader (Aliter Abogados).
3. Lodge the upfront deposit (now 20% of the appraisal value)
Before you can bid, you must lodge the upfront deposit, which since April 2025 is 20% of the property's appraisal value for auctions started after the reform, with a minimum of €1,000. The deposit guarantees that the bid is serious and is returned if the property is not awarded to you (Orozco y Asociados; Sepín).
4. Bid while the auction is open
The auction stays open for at least twenty calendar days. All activity (identification, deposit, bids) is recorded online with a time stamp. You cannot bid by phone, by post or in person at the court.
5. Pay the balance if the property is awarded to you
If you win the auction, you have twenty business days (previously forty) to pay the rest of the price offered, minus the deposit already lodged, and the period runs from the close of the auction with no need for personal notice (Sepín; Spanish Ministry of Justice (official FAQ)).
6. What happens if nobody bids on the home
If nobody bids above the legal minimum, the enforcing creditor (usually the bank) can have the property awarded to itself. The property then becomes a REO (real estate owned) asset, what the retail market calls a "bank flat". The process is explained in cheap bank-owned flats: what REO properties are and how to invest in them.
The risks that do not appear in the auction listing
- Unknown physical condition: in most judicial home auctions you cannot visit the inside of the property before bidding. You buy without having set foot in it.
- Later charges not always cancelled: review the Land Registry certificate of charges attached to the case file before you bid, not afterwards.
- Occupation: a significant share of homes at auction are occupied, and being awarded ownership does not mean taking immediate physical possession. Covered in buying an occupied property: eviction and the real risks.
- Competing bids: the more attractive the home, the further the final price rises above the starting price, shrinking the margin that motivated the bid in the first place.
- More capital tied up from the start: with the deposit now at 20% instead of 5%, bidding in several auctions at once (a common strategy to avoid relying on a single opportunity) requires far more capital available at the same time than before April 2025.
Worked example (updated for the 20% deposit)
Hypothetical figures to explain the mechanics, not a documented real case.
| Item | Hypothetical amount |
|---|---|
| Appraisal value of the property | €100,000 |
| Upfront deposit (20%, minimum €1,000, after the April 2025 reform) | €20,000 |
| Final award price at auction | €62,000 |
| Completion, registration and tax costs | €8,500 |
| Estimated refurbishment | €14,000 |
| Total investment | €84,500 |
| Estimated market value after refurbishment | €118,000 |
| Hypothetical gross margin | €33,500 |
Hypothetical example. It does not account for the property being occupied, carrying additional charges, or the final bid rising because of competition between bidders. The 20% deposit is capital tied up from the moment you bid until the outcome, even though it is returned if the property is not awarded to you: it is a real opportunity cost that many guides leave out.
Can you win a home at auction well below market value?
Not with any guarantee. The starting price of a judicial auction can indeed be well below the property's market value, but that does not automatically mean a profit: the final price depends on how many people bid, and the investor takes the property "as is", with its charges, physical condition and occupation, without the protections of a conventional purchase. A low starting price compensates for a real risk, it is not a gift, and since the 2025 reform it also requires committing more capital just to get into the game.
What to check before your first bid
Bidding for a home on the BOE Auction Portal is still technically accessible (it only requires digital identification and the upfront deposit), but since April 2025 it requires committing a lot more capital up front than before, and prior research matters as much as ever: charges, occupation and the condition of the property are not resolved in the listing. Before taking part, it also helps to understand what REO properties (cheap bank-owned flats) are, the scenario that arises if nobody bids, and to review returns and risks in the NPL and REO market.
Average returns in Spanish judicial home auctions
There is no consolidated official statistic (from the Ministry of Justice or the CGPJ, Spain's General Council of the Judiciary) on the real average discount achieved in judicial home auctions in Spain; the figures in circulation come from specialist auction portals with a direct commercial interest in the sector, so treat them as market guidance rather than independent statistics.
With that caveat, the available data points consistently in one direction: an average discount of around 28% on the official appraisal value in deals closed during 2024-2025 (Subastae), within a wider range of 20% to 45% depending on the province and the type of procedure, which in markets such as Madrid or Valencia can reach 30%-60% in the most favourable cases (Comprar en Subasta).
That discount on appraisal is not a net margin: you still have to subtract the 20% deposit tied up from the moment you bid, completion and registration costs, and refurbishment if the property needs it, as the worked example in this guide shows. A large starting discount is not the same as a low final price either, because competition between bidders can push the price up.
Frequently asked questions
How much do I need to deposit now to bid in a judicial home auction?
Since 3 April 2025, 20% of the property's appraisal value, with a minimum of €1,000, for proceedings started on or after that date. Before the reform it was 5%. Always check the start date of the specific proceedings, because those started before the reform may still use the old percentage.
Can I visit the home before bidding in a judicial auction?
In most cases no, unless the occupant or the court expressly allows it. It is one of the biggest differences from a conventional purchase and one of the reasons this kind of deal carries more risk.
What happens if I lose the auction?
You get your upfront deposit back, unless specific conditions of the proceedings, published in the auction listing itself, say otherwise.
Can I use a mortgage to buy a home at a judicial auction?
It is possible but complicated, because the payment deadlines (now 20 business days, previously 40) are much shorter than a conventional mortgage process, and many lenders will not finance properties whose occupation or condition is unknown. Most auction purchases are made with the buyer's own capital.
Are the assignment of the winning bid (cesión de remate) and a judicial home auction the same thing?
No. The auction is the public procedure open to any bidder. The assignment of the winning bid is a specific mechanism, governed by article 647.3 of the LEC (Ley de Enjuiciamiento Civil, Spain's Civil Procedure Act), by which the enforcing creditor transfers its right to the award to a third party. It is explained in the assignment of the winning bid in Spanish judicial auctions.
Related articles
- Assignment of the winning bid (cesión de remate): what it is and how it works
- Cheap bank-owned flats: what REO properties are and how to invest in them
- Buying defaulted mortgage debt: what an NPL is
- Buying an occupied property: eviction explained
- NPL returns and legal risks
- Investing in defaulted mortgage debt: the complete guide
If you would rather have exposure to Spanish real estate without bidding yourself, tying up a 20% deposit or dealing with charges and occupation: discover the active projects at Reental, with regular dividends and a secondary market to sell your position without waiting for court proceedings to conclude.
Legal notice: This article is for information and educational purposes only. It does not constitute financial, tax or legal advice, nor a personalised investment recommendation. All investment involves risk, including the possible partial or total loss of the capital invested. Past performance does not guarantee future results. Before making any investment decision, consider your personal situation, objectives, time horizon and risk tolerance and, if necessary, consult a qualified professional.
AI transparency: This content was produced with the assistance of artificial intelligence tools and subsequently reviewed, verified and edited under human editorial responsibility.
Data and sources: Spanish Ministry of Justice, Orozco y Asociados, Aliter Abogados, Law 19/2015 (BOE-A-2015-7851), Organic Law 1/2025, Sepín legal blog, Subastanomics, Iberley, Subastae (average discount 2024-2025), Comprar en Subasta (ranges by province). Worked-example figures are hypothetical.
