Your guide to buying property in Spain

Using our combined decades of international experience and working alongside our local experts, we can advise you on how to fine-tune your search requirements. Elements that are important to consider are;

• Purpose of purchase
• Areas/location
• Property features (e.g. number of bedrooms and property size)
• Style (e.g. branded residences, amenities)
• Budget
• Preferred timeframe

We work hand-in-hand with our local partners to ensure that your time spent viewing properties is productive and enjoyable. By consulting with you in advance of your visits, we can ensure that we show you the most suitable properties within your criteria.

Before signing the Private Contract, it is necessary to prepare the following:

NIE (Tax Identification Number)

All foreign buyers must obtain an NIE. This can be done in person at the relevant administrative office or through a Power of Attorney (POA) if you're unable to attend in person. It's advisable to get your NIE early in the process to avoid delays.

Spanish Bank Account

A bank account in Spain is strongly recommended, for both the property payment and for future tax and utility payments. The bank will ask for documentation regarding the origin of the funds you plan to use to purchase the property. Be sure to understand the bank's requirements in advance.

To express a buyer's intention to proceed with the purchase of a property, a Letter of Intent (LOI) may be recommended to be signed.

To formalise an offer, it may be recommended that you sign a Letter of Intent (LOI) or deposit contract which will be accompanied by a deposit (a good faith deposit). This deposit is held by the bank and is typically a percentage of the property's price (the agency will guide you on the exact amount).

It is important to emphasise that the purchasing process differs between new developments and existing properties.

New development
1. LOI or deposit contract
2. Stinging of the pre-sale contract
3. Stage payments during the construction
4. Final payment at completion (Notary signing)

Resale:
1. Deposit contract
2. Final payment at Notary
Should the seller agree to the terms of the LOI and countersign the document, the typical timeframe before proceeding to the private purchase contract is approximately one month.

At this stage, both parties are committed to the transaction but not bound.

Prior to signing a private contract, your lawyer will conduct legal/technical checks and may recommend that you conduct a survey. The Contrato de Arras (or PPC contract) is a private agreement between the buyer and seller and includes details such as the purchase price, payment breakdown, relevant information about the property, and any associated deadlines to the transaction.

At this agreement, the buyer will normally be requested to make a down payment (typically 10% of the agreed purchase price) which is paid into the seller’s bank account.

Typically, this contract will include terms relating to the repercussions of either party withdrawing.

It is important to note that, for new developments there is a 10% VAT to be added
to the final price of the property.

Spanish property law can be complex, and a lawyer (abogado) protects your interests.

The lawyer will check the Registro de la Propiedad (Land Registry) for ownership, debts, or encumbrances, verify building licences and that the property is legally registered.

Before purchasing a property in Spain, buyers must verify their identity in compliance with Spain's Anti-Money Laundering regulations through a process known as KYC (Know Your Customer).

This process requires confirming the buyer's identity, financial background, and the legal source of the funds used for purchase.

KYC checks are carried out before signing the private purchase contract and again before signing the title deed at the notary.

They will also check utility bills, community charges and local taxes are up to date and confirm no tenants have rights to remain and that the property matches the official description.

Completion takes place at the Notary’s office with the buyer, the seller, and lawyers, where the Notary reads the Escritura de Compraventa (deed of sale).

Before completion, we recommend revisiting the property. It is necessary to transfer the purchase balance, Notary’s fees, land registration costs and transfer taxes prior to signature. Depending on your circumstances, you may subrogate the developer’s existing loan or arrange parallel financing. If there is a loan linked to the project, cancelling or taking it over must be coordinated with the bank at the time of signing. KYC procedures must also be completed again.

Your bank can advise on the appropriate transfer method, eg. OMF, SEPA instant transfer or a bank issued cheque.

After signing, your lawyer will register the Escritura in your name at the Land Registry, which is essential to securing legal ownership.

• Notary fees: 0.2-0.5%
• Property registration: 0.1-0.3%
• Property tax: 0.5% of the cadastral value

Note: For new‑build purchases, the developer provides a post‑completion courtesy walkthrough after the deed is signed. This visit allows you to inspect the finished property, confirm it matches the agreed specifications, and address any issues.

Often known as ITP (Impuesto sobre Transmisiones Patrimoniales), Spanish property transfer tax differs by region, ranging from 6% to 11% of the purchase price.

New build properties are subject to 10% VAT nationwide plus stamp duty, which varies from 0.5% to 1.5%. Special considerations are made for the Canary Islands where 7% VAT is applied, or 4% for officially protected housing.

• Notary fees typically range from 0.5% to 1% of the purchase price.

• Land registry fees range from 0.5% to 1% of the purchase price.

• Legal fees are approximately 1% to 2% of the purchase price plus VAT.

There is an annual property tax called IBI (Impuesto sobre Bienes Inmuebles), which varies by municipality and typically ranges from 0.4% to 1.3% of the cadastral value.

If your home is worth over €700,00, you’ll begin paying a progressive wealth tax that varies depending on the location. If you’re a resident and the property is your primary home, you’re entitled to an additional €300,000 exemption.

It's not necessary to have a residence permit to buy a property in Spain, unless you plan to live in Spain for more than 183 calendar days per year. In that case, you'll need to apply for tax residency in Spain, and obtain a visa from the Spanish Consulate in their (non-EU) home country.

The ‘Mbappé Law’ is a new tax incentive introduced by Madrid to attract foreign investors and talent to live in the region by offering a significant deduction for personal income tax on certain assets. This law offers a deduction equal to 20% of your investments in the regional tax bracket of the personal income tax.

The Spain Digital Nomad Visa is a temporary residence permit that allows non‑EU/EEA citizens to live in Spain (1–3 years initially, for a total stay of up to 5 years) while working remotely for foreign companies or clients and earning most of their income outside Spain.

Spain’s Non‑Lucrative Visa (NLV) allows non‑EU/EEA/Swiss nationals to live in Spain without working, provided they can prove financial self‑sufficiency (about €28,800/year plus €7,200 per dependent), hold comprehensive Spanish‑approved private health insurance, have a clean criminal record, and secure accommodation in Spain. The visa is valid for one year, renewable for two‑year periods if funds and residency requirements (≥183 days/year in Spain) are maintained.