Buying Property in Spain

Buying Property in Spain: The Complete Process

Buying property in Spain is straightforward once you understand the system.

Before You Start

Get Your NIE

You cannot buy property without an NIE (tax identification number). Apply before property hunting.

Open a Spanish Bank Account

You'll need this for paying deposits, utilities, and the mortgage if applicable.

Set Your Budget Realistically

• Transfer tax (ITP): 7% in Andalucía for resale

• Notary fees: 0.5-1%

• Land registry: 0.5-1%

• Legal fees: 1-1.5%

The Buying Process

Step 1: Find Your Property

Options: Real estate agents, Idealista/Fotocasa, developers (new builds), auctions.

Step 2: Make an Offer

When accepted, pay a small holding deposit (€3,000-6,000) to take property off market.

Step 3: Hire a Lawyer

Step 4: Due Diligence

Your lawyer checks: Nota Simple, debts, planning status, community rules, urban planning.

Step 5: Private Contract

Sign contract and pay 10% deposit. This is binding—if you pull out, you lose your 10%.

Step 6: Arrange Mortgage (If Needed)

Spanish banks typically lend 60-70% LTV for non-residents, 70-80% for residents.

Step 7: Completion (Escritura)

At the notary, sign the public deed, transfer funds, receive keys.

Costs Breakdown

Common Pitfalls

• **Illegal constructions:** Extensions without permits are common

• **Outstanding debts:** Community fees can transfer with property

• **Buying off-plan:** Ensure bank guarantee for deposits

• **Currency fluctuations:** Consider forward contracts