Complete Property Buying Process in Spain for Foreigners Step by Step

Complete Property Buying Process in Spain for Foreigners Step by Step

Buying property in Spain as a foreigner follows a structured legal process that typically takes 6-12 weeks from accepted offer to completion. The process is governed by the Spanish Civil Code, the notarial law, and property registration rules. Here is every step.

Step 1: Get Your NIE Number

Timeline: 1-4 weeks.

The NIE (Número de Identidad de Extranjero) is required before any financial or legal transaction. Apply at a Spanish police station (comisaría) with a foreigners office, or at a Spanish consulate in your home country.

Documents needed: completed EX-15 form, passport original plus copy, proof of reason (letter from lawyer or property reservation), and payment of the €12 fee (form 790-012). Your lawyer can apply with power of attorney.

If you are applying in Spain rather than at a consulate, book the appointment through the Sede Electronica online system as early as you can. Slots in the popular expat provinces fill weeks ahead, and the appointment, not the paperwork, is usually what sets the timeline.

Step 2: Hire a Spanish Lawyer (Abogado)

Timeline: Before making any offers.

Spanish law does not require you to have a lawyer for a property purchase (unlike Greece, where it is practically mandatory). However, proceeding without one as a foreign buyer is strongly inadvisable. The notary verifies legality and identity but does not represent your interests.

Find a lawyer through the local Colegio de Abogados (bar association). The Ilustre Colegio de Abogados de Madrid and Ilustre Colegio de Abogados de Barcelona have member directories. Legal fees typically run 1-1.5% of the purchase price, agreed in writing upfront. The lawyer must be independent and not affiliated with the seller, developer, or agent.

Most firms apply a floor of roughly EUR 1,500 to EUR 2,500 on that percentage, so on a low-value purchase the minimum is what you will pay. If you will not be in Spain for every step, grant a power of attorney (poder notarial). It has to be executed before a Spanish notary, or if signed abroad, notarised, apostilled, and translated by a sworn translator.

Step 3: Open a Spanish Bank Account

Timeline: 1-2 weeks.

You need a Spanish bank account to pay taxes, transfer the purchase price, and set up direct debits for utilities and community fees. Major banks include CaixaBank, Santander, BBVA, and Sabadell.

Required documents: NIE, passport, proof of address, and proof of income/source of funds. Spanish banks conduct KYC checks that can take several days. Non-resident accounts (cuenta de no residente) are available with specific tax withholding rules.

Allow one to three weeks for the anti-money-laundering checks on a non-resident account, and note that some banks also ask for a Spanish mobile number. Move the purchase funds into the account well before the signing date rather than in the days around it.

Step 4: Property Search and Reservation

Timeline: Varies.

Once your NIE and bank account are in place, begin the search. Property portals include Idealista, Fotocasa, and Habitaclia. Licensed agents (agentes de la propiedad inmobiliaria) can help but verify their credentials.

When you find a property, a reservation (reserva) is typically made with a small deposit (€3,000-€10,000) to take the property off the market while due diligence is conducted. This reservation should be made through your lawyer with clear refund conditions if due diligence reveals problems.

The reservation typically holds the property off the market for two to four weeks. Understand the default position before signing: outside the refund conditions your lawyer negotiates, a reservation deposit is normally non-refundable if you withdraw without legal cause once that period has run.

Step 5: Due Diligence

Timeline: 1-3 weeks.

Your lawyer conducts several critical checks.

Nota Simple from the Registro de la Propiedad: This document from the Property Registry shows the current registered owner, property description, and any registered charges (mortgages, liens, embargoes, easements). It can be obtained online for approximately €10. This is the most important due diligence document.

Catastro Check: Verify the property details with the Catastro to confirm size, boundaries, and cadastral reference. Discrepancies between the Registro and Catastro should be resolved before purchase.

Urban Planning Check: Your lawyer contacts the local Ayuntamiento (town hall) to confirm the property complies with urban planning regulations, has a valid building license (licencia de primera ocupación or cédula de habitabilidad), and has no pending enforcement actions. This is especially important in Andalusia and coastal areas.

Community Status: For apartment purchases, request the community of owners' financial statements, outstanding debts, and minutes of recent general meetings. Under the Ley de Propiedad Horizontal, the buyer inherits any outstanding community debts from the current and previous year.

Tax Check: Confirm the seller is current on IBI (property tax) payments and has no tax debts registered against the property.

Energy Performance Certificate (CEE): The seller must provide a valid energy certificate, required for all sales under Royal Decree 235/2013.

Step 6: Private Purchase Contract (Contrato de Arras)

Timeline: 1 day for signing, after due diligence is complete.

Once due diligence is satisfactory, the parties sign a private purchase contract, most commonly a contrato de arras (earnest money contract). This is governed by Article 1454 of the Civil Code.

The standard arras contract (arras penitenciales) works as follows: the buyer pays a deposit (typically 10% of the purchase price). If the buyer backs out, they lose the deposit. If the seller backs out, they must return double the deposit. The contract sets a completion date (typically 4-8 weeks) when the notarial deed will be signed.

Your lawyer must review and negotiate this contract. Key terms to verify: exact description of what is included in the sale (furniture, fixtures, parking space, storage room), confirmation that the property will be delivered free of charges and occupants, and penalties for delay by either party.

Step 7: Arrange Financing (If Applicable)

Timeline: 4-8 weeks for mortgage approval.

Spanish banks offer mortgages to non-residents, typically up to 60-70% of the purchase price or valuation (whichever is lower) at current interest rates. Law 5/2019 (Ley de Crédito Inmobiliario) governs mortgage lending and provides consumer protections including a mandatory 10-day reflection period before signing.

That 60 to 70 percent is a non-resident rate. Spanish residents are typically offered up to 80 percent on the same property. Variable-rate mortgages are priced off the 12-month Euribor plus a spread, with fixed-rate products also available.

The bank will commission an independent property valuation (tasación) by an approved valuation company registered with the Banco de España. Valuation costs are approximately €300-€600.

Mortgage fees have been reformed by Law 5/2019: the bank now pays most mortgage costs (notary, registry, gestoría for the mortgage deed, and AJD stamp duty on the mortgage). The buyer pays only the property valuation fee.

Step 8: The Notarial Deed (Escritura Pública)

Timeline: 1 day (the appointment), scheduled 1-2 weeks in advance.

The completion takes place at a notary's office. The notary is chosen by the buyer (this is your right, not the seller's or the bank's). The notary reads the entire deed aloud in Spanish. If you do not understand Spanish, a sworn translator (traductor jurado) must be present.

At completion, you will need: your NIE, passport, the tax payment receipts (ITP or IVA/AJD, depending on whether the property is new or resale), proof of payment of the purchase price (bank transfer confirmation), and the seller must present their tax clearance certificates.

The purchase price is typically paid by bank check (cheque bancario) issued by your Spanish bank, or by bank transfer confirmed at the notary's office. Cash payments above €2,500 are prohibited for transactions involving a business party (Article 7 of Law 7/2012).

Notary fees are regulated and typically run €600-€1,200 for a standard residential purchase. You receive a certified copy (copia autorizada) of the escritura.

Step 9: Pay Taxes

Timeline: Must be completed within 30 business days of the notarial deed.

Resale Property: Pay ITP (Transfer Tax) to the autonomous community's tax agency. Rates: 6% (Madrid), 7% (Andalusia), 10% (Catalonia, Valencia), varying elsewhere. Payment is typically filed by the gestoría using form 600.

New Property from Developer: Pay IVA (10% VAT) and AJD (Stamp Duty, 0.5-2% depending on autonomous community). IVA is paid to the Agencia Tributaria and AJD to the autonomous community.

Plusvalia Municipal: This municipal tax on the increase in land value is payable by the seller as a matter of law, but a contract can shift it to the buyer, and some do. Settle who pays it in the arras contract rather than discovering it at the notary.

Step 10: Register at the Registro de la Propiedad

Timeline: Submitted immediately; registered within 15 business days (legally mandated).

Your gestoría or lawyer files the escritura at the Registro de la Propiedad along with proof of tax payment. Registration makes your ownership opposable to third parties and is essential for legal protection. Registry fees are regulated and typically €300-€700.

Step 11: Post-Completion Administration

Timeline: 2-4 weeks.

Transfer utilities (electricity, water, gas) to your name. Notify the community of owners of the ownership change. Set up direct debits for IBI (property tax), community fees, and utilities. If you are a non-resident, set up a standing order or representative to handle your annual non-resident income tax filing (model 210) through the Agencia Tributaria.

Note that the Modelo 210 obligation applies whether or not the property earns anything. A non-resident owner who leaves the property empty still files and pays imputed income tax on it; a let property is taxed on the actual rental income instead.

Total Cost Summary

For a resale property, total transaction costs are approximately: ITP at 6-10% (depending on region), legal fees at 1-1.5%, notary fees at approximately 0.1-0.2%, registry fees at approximately 0.1-0.2%, and gestoría fees at approximately €300-€600. Total: approximately 8-13% above the purchase price.

For a new property from a developer: IVA at 10%, AJD at 0.5-2%, legal fees at 1-1.5%, notary and registry fees as above. Total: approximately 12-15%.

For transparent property information and process support in Spain, Bektu provides independent resources for foreign buyers.

Bottom Line

The Spanish property purchase process is well-established and provides strong legal protection through the notarial deed and Property Registry system. The critical steps are engaging independent legal representation, conducting thorough due diligence (especially the nota simple check and urban planning verification), and ensuring all payments flow through the banking system with proper tax compliance. Budget 8-15% above the purchase price for transaction costs, depending on your region and whether the property is new or resale.