Prepare before you search
Clarify your budget including acquisition costs, decide on your preferred regions, and appoint an independent Spanish lawyer early. Regional differences within Spain can be significant.
This guide is a general overview only; always confirm current rules and figures with your lawyer and a local tax adviser.
Get your NIE and legal representation
Foreign buyers generally need an NIE (Número de Identidad de Extranjero), a Spanish tax identification number used in the transaction.
Appoint an independent lawyer who acts solely for you to carry out due diligence and review all contracts before you sign.
Reservation and private purchase contract
A property is often taken off the market with a reservation agreement and a small deposit. This is typically followed by a private purchase contract (contrato de arras) with a larger deposit.
The arras contract usually sets out the consequences if either party withdraws, so understand it fully before signing.
Completion before a notary
The purchase is completed by signing the public deed (escritura) before a notary, at which point the balance is paid and possession transfers.
Your lawyer can attend on your behalf under a power of attorney if you cannot be present.
Taxes: transfer tax or VAT
Resale homes are generally subject to a regional transfer tax (ITP), while new-build homes are typically subject to VAT (IVA) plus stamp duty. Rates vary by region and change over time.
Budget for notary fees, registration fees and legal fees in addition to the applicable tax. Confirm current percentages with your adviser.
Registration and community fees
After completion the deed is registered at the Land Registry (Registro de la Propiedad). Registration protects your ownership and should not be skipped.
Many properties belong to a community of owners with annual community fees covering shared areas and services.
Financing and regional differences
Non-resident mortgages are available from some Spanish banks, typically with a larger deposit than for residents. Obtain an indication of terms early.
Rules, taxes and incentives can differ between autonomous communities, so advice specific to your region is essential.
Frequently asked questions
This guide is provided for general information only and does not constitute legal, tax, financial, residency or investment advice. Rules, costs and processes vary by country, region and personal situation. Always obtain independent local advice before making a property decision.
