Buying Real Estate in Spain
An A to Z free guide book of Spanish Real Estate Sector, includes all steps and terms for foreign buyers.
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Spain Homes ® is a local real estate company in Spain. We provide local expertise and professional service throughout the entire buying process.
Spain is the perfect choice to have a beautiful life with stunning Mediterranean views, more than 300 days of sunshine, and stunning beaches. The country's vibrant cities offer world-famous restaurants and traditional tapas-bars with delicious dishes.
However, Spain is not just about stunning landscapes, exceptional cuisine, and a high-quality lifestyle—it also promises profitable property deals for investors. Whether you’re looking for a holiday home in Spain, a real estate investment, or a combination of both, you will find a stable and promising property market.
If you want to buy a property in Spain but don’t know where to start, don’t worry! Navigating property for sale in Spain as a foreigner requires expert guidance and professional support to ensure a smooth experience. The process can be complicated if you are unfamiliar with local regulations and procedures. However, working with a trusted local expert gives you clarity, security, and peace of mind throughout your property purchase.
How to Buy Property in Spain?
Our experienced real estate agents navigate every step of the buying process to guarantee a seamless and stress-free experience. We offer comprehensive customer service, from finding your dream home to getting your title deed, with confidence and ease. You can explore our services here: free Before and After-Sales Services.
We have compiled a step-by-step guide to buying property in Spain to provide you with a clear understanding of the process.
1. Research
With thousands of properties available in Spain, finding the perfect one requires careful consideration. Each region has its own unique character, which means choosing a location that truly fits your lifestyle and investment goals is essential. To narrow down your options, it's important to ask yourself key questions:
- What features do you want in a home?
- What is your budget?
- Which region best suits your lifestyle and needs?
- Are you purchasing for investment or personal use?
Our expert team guides you through this process, asking the right questions and listening to your needs. Together, we create a personalized wish list for your dream home. With our professional support, we help you balance your preferences with available options, so that you can make the best possible choice.
2. Property Viewing Tour
After carefully selecting the best properties that match your preferences, we provide you with detailed information about each option. We then arrange your personalized property viewings, which allows you to inspect the homes firsthand and make sure they meet your expectations.
During the tour, you’ll have the opportunity to ask any questions, and our experts will provide immediate and comprehensive answers to help you make an informed decision with confidence.
3. Legal Consultancy
Hiring a lawyer is highly recommended when purchasing property in Spain. You can choose your own legal representative or work with a trusted lawyer recommended by your agent.
A legal adviser who manages the process on your behalf through power of attorney can save your time and money. Typically, these professionals can shorten the process to 2 to 3 months.
Your lawyer plays a crucial role in making sure your transaction is secure and risk free.
Their responsibilities include:
- Understand your financial situation and needs.
- Inform you about the legal procedures and all associated costs.
- Answer any questions you may have with clarity.
- Provide the most accurate and reliable legal advice.
At Spain Homes ®, we work with experienced legal professionals to ensure a safe, transparent, and hassle-free buying process. You can find more details in our Spain real estate guide Legal Support here.
4. Situation Analysis
Making a thorough situation analysis is essential to minimizing risks and ensuring a secure property purchase. By carefully checking all legal, financial, and structural aspects, buyers can avoid unexpected issues such as hidden debts or property restrictions. Taking these steps protects your investment and gives you peace of mind throughout the buying process, whether you're searching for the best places to buy property in Spain or exploring new opportunities.
To avoid legal or financial complications, it is important to verify the following:
- Make sure the seller has the right to sell the property and that the title is legally valid.
- Check for outstanding mortgages, liens, or unpaid taxes that could become your responsibility after purchase.
- Confirm that essential services such as electricity, water, and gas are properly registered and paid for.
- Ensure the property is not currently leased or occupied, and that there are no restrictions on your intended use.
- Assess the property’s physical state, including any potential repair or renovation costs.
At Spain Homes ®, we thoroughly check all these factors before listing any property in our portfolio. This means you can browse with confidence, knowing that the prices on our website reflect the real market value—without overpricing or hidden complications.
For extra peace of mind, we always encourage buyers to conduct their own due diligence or consult with legal and technical experts before finalizing a purchase.
5. Contract
The property purchase process in Spain requires signing two key contracts, each with its own legal and financial implications.
Before signing an official contract, buyers usually pay a reservation deposit (typically €3,000–€6,000) and sign a preliminary agreement. This step removes the property from the market, giving time to complete legal checks. The deposit is usually refundable but it also depends on the terms—some agreements make it non-refundable, so it’s crucial to review the conditions carefully.
Once both parties confirm the details, they sign the Preliminary Purchase Contract (Contrato de Arras), which legally binds the buyer and seller. This step is not always legally required but it is highly recommended and commonly used. At this stage, the buyer pays a down payment of around 10% of the property's price—the down payment amount may vary depending on the seller or the situation of the construction. If the buyer backs out, they lose the deposit, while if the seller withdraws, they must return double the deposit as compensation.
Before signing, you should carefully check contracts and talk to a legal expert to avoid risks. It is important to understand all financial responsibilities, especially the rules about deposit refunds, to prevent unexpected costs.
Since canceling the deal can lead to financial loss, you should be completely sure before making a commitment. At Spain Homes ®, we support clients through every step, making sure all contracts are clear, fair, and legally safe for an easy and secure property purchase.
6. Getting an NIE Number and Opening A Bank Account
Getting your Número de Identificación de Extranjeros (NIE) is one of the most important steps when buying property in Spain. Since it’s required for any financial transaction, including purchasing real estate, opening a bank account, and setting up utilities, you should prioritize obtaining it early to avoid delays.
Applying for NIE is straightforward. You need to visit the Foreigners Office (Oficina de Extranjeros) with the required documents, including your valid passport, completed NIE application form (EX-15), and proof of your reason for applying, such as a property reservation agreement. We assist you throughout the application process to ensure everything is in order.
Once you receive your NIE, you’ll need to open a Spanish bank account to handle property payments, taxes, and utility bills. We help you set up an account with one of our partner banks so that everything is in order.
By securing your NIE early, you can almost guarantee a smooth and efficient property purchase, and avoid last-minute complications.
7. Title Deed
To finalize your property purchase in Spain, you will sign the Title Deed (Escritura Pública) at a notary's office. At this stage, you will pay the remaining balance of the purchase price, officially becoming a homeowner in Spain.
After signing, you will receive a Copia Simple, an uncertified copy of the Title Deed, for your records. If you have obtained a mortgage, the bank will retain the original Title Deed until the loan is fully repaid.
Once the Title Deed is signed, the notary will send an electronic copy to the Land Registry (Registro de la Propiedad) to register the property in your name, which confirms legal recognition of your ownership.
8. Land Registry
After signing the title deed at the notary, you need to register your ownership with the Land Registry (Registro de la Propiedad). This step is important because it legally protects your property rights and confirms that you are the official owner. To complete the registration, you must submit the notarized title deed along with proof of payment for any required taxes.
If you are buying the property under a company’s name, make sure all company documents are updated and accurate. You will need to provide legal paperwork that confirms the company’s ownership structure and any recent changes, such as modifications to the company title. Since 2010, Spanish authorities require companies to disclose any shareholder or beneficiary who owns at least 25% of the company when purchasing real estate.
Registering the property correctly does more than just confirm your legal ownership, it also protects you from potential disputes or future claims on your property. To avoid problems, it’s best to complete this process as soon as possible after signing the title deed.
9. Spain’s Property Taxes and Legal Fees
It is essential to factor in the additional costs & taxes when buying property in Spain. These expenses usually add up to 10% to 15% of the purchase price, depending on the property's location and whether it is new or resale.
For new properties, you must pay Value Added Tax (IVA) at 10% of the purchase price and Stamp Duty (AJD), which is generally around 1.2%, though it varies by region. It can be as low as 0.5% in Madrid or as high as 2% in Catalonia.
For resale properties, instead of IVA, you pay the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales - ITP), which ranges between 6% and 10%, depending on the region. For example, in Madrid and the Basque Country, the ITP is lower at 6%. However, in Catalonia, Valencia, and Andalusia, the rate can reach 10%.
You also need to budget for legal and administrative fees. Hiring a lawyer costs between 0.5% and 1% of the purchase price, with a minimum of €1,000 to €2,000. Notary fees typically range from €300 to €1,200, while Land Registry fees cost between €400 and €600. These costs cover the official process of transferring and registering ownership, making your purchase legally secure.
Once you own the property, you will have ongoing expenses. Impuesto sobre Bienes Inmuebles (IBI) is an annual municipal tax that all property owners must pay, even if they do not live in Spain. The amount depends on the cadastral value of the property and the local tax rate.
If your property is in a residential complex, you will also have to pay community fees for maintaining shared spaces such as gardens, swimming pools, and security services. Additionally, you must cover monthly utility bills like electricity, water, and gas, which vary depending on usage and provider.
Spain is currently discussing a 100% tax surcharge on properties purchased by non-EU citizens who are not residents to address housing affordability and prioritize local buyers. If this new rule takes effect, it could significantly increase the cost of buying property in Spain and have a major impact on foreign investments. Staying informed about these potential changes will help you make a smart investment decision. Speaking with a legal expert will clarify how this could affect your purchase.
Because property taxes and fees can vary, it is important to ask for detailed receipts so you fully understand each payment. Always request and keep original invoices for notary fees, land registry fees, and taxes to avoid any issues later. Working with a lawyer will help you handle these costs efficiently, making sure everything is done correctly. At Spain Homes ®, we provide expert advice on taxes, legal fees, and other property-related expenses, helping you make informed decisions throughout the buying process.
10. Getting Your Keys
At Spain Homes ®, we complete every process with a 100% success rate and customer satisfaction. We take pride in providing a smooth and reliable experience, making your property purchase as stress-free as possible. As you settle into your new residence, our team remains available to assist with any questions or additional support you may need.
For many international buyers, purchasing property in Spain is not just about owning a home but also about securing long-term residency. While Spain’s Golden Visa program, which has been a popular route for non-EU investors, will officially end on April 3, 2025, there are still several alternative visa options available. For example, the Non-Lucrative Visa, Digital Nomad Visa and Entrepreneur Visa are both available as alternatives. Despite this change, Spain continues to be one of the best destinations for living, vacations, and investment, thanks to its rich culture, excellent climate, and strong real estate market.
If you are considering alternative residency options, our experts can guide you through the available choices and help you find the best solution for your needs. Whether you're looking for a dream home or an investment opportunity, Spain Homes ® is here to assist you every step of the way. Contact Spain Homes ® now to start your journey toward owning a property in Spain!
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