The Complete Guide to Buying Property in Spain
Buying property in Spain is a dream for many international buyers — but the process differs from what you may be used to at home. A Spanish property purchase involves an NIE tax number, a private contract, a notary appointment and a number of taxes. This guide explains everything from start to finish.
Step 1: NIE number
The NIE (Número de Identidad de Extranjero) is your Spanish tax number and is mandatory for any property transaction, opening a bank account, and paying Spanish taxes. You can apply at a Spanish consulate in your home country or directly at a policía nacional station in Spain.
Tip: Give your Spanish lawyer power of attorney to apply for the NIE number on your behalf. It's the easiest solution and doesn't require you to be physically present in Spain.
Step 2: Open a Spanish bank account
A Spanish bank account is needed to pay the purchase price, ongoing bills (IBI, utilities, community fees) and any Spanish taxes. The major Spanish banks (Santander, BBVA, CaixaBank, Sabadell) all accept EU citizens as customers, and most also accept non-EU buyers.
Step 3: Hire an independent lawyer
An independent Spanish lawyer (abogado) who represents ONLY your interests is essential. The lawyer checks: the nota simple (land registry extract), planning status, any loans or charges, and unpaid property taxes and community fees.
Warning: Do NOT use a lawyer connected to the estate agent or the developer. Always hire your own independent lawyer.
Step 4: The arras contract (reservation agreement)
Before the final completion at the notary, a private contract (arras penitenciales) is signed that binds both parties. The buyer typically pays a 10% deposit. If the seller pulls out, they must pay back double. If the buyer pulls out, they lose the deposit.
Step 5: Completion at the notary
The final transaction takes place before a Spanish notary (Notaría). Here the public title deed (escritura pública) is signed, the balance is paid, and the keys are handed over. All parties (buyer, seller, bank representative if there's a mortgage) attend in person or via power of attorney.
Step 6: Taxes when buying
- ITP (Impuesto sobre Transmisiones Patrimoniales) — for resale property: 6-10% depending on region. Andalusia: 7%. Valencia: 10%.
- IVA (VAT) — for new-build property: 10% (apartment) or 21% (building plot)
- AJD (stamp duty) — for new-build property: 0.5-1.5%
- Notary fee — approx. 0.5-1% of the purchase price
- Land registration — approx. 0.3-0.8% of the purchase price
- Lawyer fees — approx. 1-1.5% of the purchase price
Step 7: Land registration
After completion at the notary, the title deed is registered with the local land registry (Registro de la Propiedad). This protects your ownership against third parties and is strongly recommended even though it is not legally required. The process typically takes 1-3 months.
Ongoing costs as an owner
- IBI — local property tax (300-3,000 EUR/year)
- Basura — refuse collection charge
- Comunidad de propietarios — community fees in urbanisations (500-3,000 EUR/year)
- Insurance — contents and building insurance
- Electricity, water, gas — utilities