Guide 1
Buying Steps
Buying a home in Spain follows a clear order once you can see it: a tax number, a budget, checks on the property, a deposit contract, the deed at the notary and the Land Registry. This guide walks through each stage for a typical resale purchase.
1. The NIE
The Número de Identidad de Extranjero is the identification and tax number every foreign buyer needs. Without it the notary cannot authorise the deed and the taxes cannot be paid. You can apply at a Spanish consulate in your home country or, in Spain, at a police station that handles foreigners’ documents, usually by appointment. Waiting times vary a lot, so many buyers apply before they start viewing.
2. Bank account and budget
A Spanish bank account is not legally required to buy, but it makes paying taxes, utilities and community fees far easier. When you set a budget, add the purchase costs on top of the price. For a resale home, transfer tax, notary, registry and legal fees together often come to roughly ten to fifteen per cent, depending on the region. The Costs & Taxes guide breaks this down.
If you need a mortgage, non-residents are usually offered a lower loan-to-value than residents. Ask for the bank’s binding offer (the FEIN) in writing, and note that Spanish law gives you a reflection period before signing the mortgage deed.
3. Viewing and offer
Asking prices are often negotiable. When you view, note what is included: furniture, a parking space, a storage room (trastero), appliances. Ask how much the community fees and the yearly IBI property tax are, and whether any large building works have been approved by the community of owners.
4. Checks on the property
Before any deposit, the key documents are:
- Nota simple. An extract from the Land Registry (Registro de la Propiedad) showing the registered owner, the description and any charges such as mortgages or embargoes. Anyone can request one for a small fee.
- Cadastral record. The Catastro shows the official surface and use of the property. Check it matches the registry and what you see.
- Licences. For newer homes or extensions, the first-occupation or occupation licence and any building licence. For rural land, check what was legally built.
- Debts. A certificate from the community of owners that fees are paid, and the latest IBI receipt.
- Energy certificate. Sellers must provide one.
Why an independent lawyer helps here. Most problems in Spanish purchases come from what the paperwork does not match: an extra room never registered, a pool without a licence, an inheritance not finished. A lawyer who acts only for you can check these points before you commit any money.
5. The deposit contract (arras)
Once the checks look good, buyer and seller usually sign a private deposit contract, commonly with a deposit of around ten per cent. The most common form, arras penitenciales, lets either side walk away at a price: a buyer who withdraws loses the deposit, and a seller who withdraws returns it twice over. The contract sets the price, the deadline for the deed and what is included. Some buyers first pay a small reservation fee to take the home off the market; read what that agreement says about refunds.
6. The deed at the notary
On the agreed date, buyer and seller, or people acting for them under a power of attorney, sign the public deed of sale (escritura pública de compraventa) before a notary. The notary checks identities, confirms the property’s registry status that day, reads the deed and makes sure taxes and the payment method are recorded. The balance is paid, usually by bank transfer or banker’s draft, and the keys are handed over.
The notary is a public official, not the buyer’s representative. They do not negotiate for you or investigate the property in depth.
7. Taxes, registry and settling in
- Pay the transfer tax (resale) or check the VAT was charged (new build) within the deadline, usually thirty working days.
- The deed is presented at the Land Registry so your ownership is recorded and protected against third parties.
- Change utilities and the IBI into your name, and set up direct debits.
- Non-resident owners file a yearly Spanish tax return on the property, even if it is not let.
New builds and off-plan
Buying from a developer adds a few points: payments before completion should be protected by a bank guarantee or insurance, and the home needs its first-occupation licence before you move in. The tax is VAT rather than transfer tax.