Social Security auctions in Spain: property with few bidders

There is a third type of public property auction in Spain that most investors are completely unaware of: Social Security auctions. They are carried out by the Tesorería General de la Seguridad Social (TGSS, the Social Security General Treasury) to collect unpaid contributions owed by entrepreneurs, the self-employed and companies. They are less frequent than court auctions or those held by Hacienda (the tax authority), but what they lack in numbers they make up for in opportunity: competition is minimal.

When Spain's Social Security enforces against property

The TGSS can seize debtors' assets when social security contributions go unpaid (contributions for employees, for the self-employed, companies' social insurance payments). If the debtor has a seized property and doesn't settle the debt, the Treasury can put it up for public auction.

In practice, these cases tend to involve debts built up by businesses that closed down or companies in liquidation. Sometimes the property is the business's premises (a shop, an office, an industrial unit), but homes belonging to self-employed people who had put up their property as security also turn up.

Where these auctions are published

Not on subastas.boe.es, where court and Hacienda auctions are listed: the TGSS announces them on the noticeboard of the Social Security's online office (sede electrónica) and collects them on its website, in the "Subastas de bienes embargados" (auctions of seized assets) section. If the provincial director considers it appropriate, they can also be advertised in widely read media or in specialist publications.

Specific conditions of Social Security auctions

• Starting price: Similar to the rest, calculated on the appraisal value: it is the valuation of the asset, minus the prior charges that remain in place. Oral bids (posturas de viva voz) must reach at least 75% of that starting price.
• Payment deadline: Very short. The TGSS requires you to pay the rest of the price within the five working days following the award; otherwise, you lose the deposit. Pre-approved financing or your own capital is a must.
• Information available: Generally scarcer than at court auctions. The edicto (the auction notice) may contain fewer details about the condition of the property. The Nota Simple from the Registro (the Land Registry extract) is still your best source of information.

Why competition is so low

Basically because very few people know they exist. Private investors don't have this channel on their radar. Institutional investors don't prioritise such a small market either. The result: you may find yourself the only bidder at an auction, with the chance of winning it at the minimum starting price.

The downside: you have to keep a close eye on the Social Security website, because they appear less often and on less predictable dates. Check its "Subastas de bienes embargados" section often: they aren't on subastas.boe.es.

Profile of the typical asset

Non-residential assets predominate (commercial premises, industrial units, offices) because they tend to be what the debtor companies own. When a home does appear, it is usually the residence of a self-employed person or small business owner with significant accumulated debts. In both cases, valuations tend to be lower than at mortgage-enforcement court auctions, which makes the starting prices even more interesting.

Further reading: Hacienda auctions (AEAT, the Spanish tax agency), how to use the auction portal of the BOE (Spain's Official State Gazette), where court and Hacienda auctions are published, and what to look out for in repossessed flats. To see all auction assets filtered by AI Score, go to RadarPro's search.