Buying process
Q: Can foreigners buy property in Spain?
A: Yes, foreigners can buy property in Spain with no restrictions. It doesn’t matter if you are an EU citizen or not – the process is essentially the same.
The main requirement is that you have a Spanish NIE number (tax identification number), which is needed for the purchase and for setting up utilities and taxes afterwards. Most buyers also open a Spanish bank account to make payments easier, although this depends on how the purchase is structured.
Buying in Spain is very common for international clients, and as long as the legal checks are done correctly, it is normally a straightforward process.
Q: What are the steps to buy a property in Spain?
A: The process depends slightly on whether you are buying a new build or a resale property, but it is generally clear and structured.
For a new build property, the first step is usually to reserve the property. This involves signing a reservation agreement and paying a reservation deposit, which takes the property off the market. After this, your lawyer carries out the legal checks, and once everything is in order, a private purchase contract is signed and the next stage payment is made, according to the developer’s payment plan. This is often a month after reservation. Completion takes place at the notary once the property is finished and ready to be handed over.
For a resale property, the process often moves more quickly. Once the price and terms are agreed, a private purchase contract (usually the Contrato de Arras) is signed directly, and a deposit is paid at that stage. Before signing, your lawyer will check ownership, debts, registration details and that the property is legally sound.
In both cases, the final step is completion at the notary, where the title deed is signed, the remaining balance is paid, and the property is officially transferred to you.
Q: How long does it take to buy a property in Spain?
A: Most resale purchases take between 6 and 12 weeks from reservation to completion. In some cases it can be faster, especially if the property is straightforward and no mortgage is involved. If you are applying for a Spanish mortgage, it often adds extra time due to bank approvals and valuations. New build purchases can also follow a different timeline depending on the developer and the stage of construction.
A realistic expectation is usually around two to three months, but it always depends on the specific property and how quickly documentation can be provided.
Q: Do I need a lawyer to buy property in Spain?
A: It is not legally required, but it is strongly recommended. The notary’s role is to witness the signing of the title deed, but the notary does not carry out full legal due diligence on your behalf. A lawyer checks the property properly before you commit: ownership, debts, licences, building legality, land registry information and whether everything matches what is being sold. They also handle contracts, tax calculations and registration after completion. For most foreign buyers, having an independent lawyer is one of the most important parts of a safe purchase.
Q: What is the difference between a lawyer and a real estate agent in Spain?
A: A real estate agent helps you find the right property, arrange viewings, negotiate with the seller and guide you through the practical side of the purchase process.
A lawyer’s role is different. The lawyer protects your legal position and ensures the property is legally correct to buy. They review documents, check the land registry, confirm debts and permissions, and make sure the contracts are correct before you sign anything.
In a well-managed purchase, the agent and lawyer work alongside each other, but they are not interchangeable. One focuses on the property and process, the other focuses on legal security.
Q: Can I buy a property in Spain remotely?
A: Yes, it is possible to buy a property in Spain without travelling for the final signing. Many international buyers complete their purchase remotely by giving power of attorney to their lawyer. This allows your lawyer to sign contracts and the title deed at the notary on your behalf. You will still need a NIE number, and you will need to arrange identification and documentation in advance, but the process itself is common and works well when it is handled correctly. Some clients still prefer to be present for completion, but it is not a requirement.
Legal documents & contracts
Q: What is a NIE number and do I need one?
A: A NIE number is your personal tax identification number in Spain. If you are buying property, you will need it, as it is required for the purchase process and for signing at the notary. It is also needed for paying taxes, setting up utilities and registering the property in your name. Most buyers arrange their NIE early, as it is one of the first steps needed to move forward smoothly.
Q: What is a Nota Simple and why is it important?
A: A Nota Simple is an official extract from the Spanish Land Registry. It confirms who the legal owner is and shows important details such as the property description, any mortgages, debts, charges or restrictions registered against it. It is one of the key documents your lawyer will review before you commit to the purchase. It helps ensure that the property is legally correct and that there are no surprises after completion.
Q: What is a reservation contract in Spain?
A: A reservation contract is typically used for new build properties. It is a short agreement that confirms your intention to purchase the property and takes it off the market for an agreed period. When signing, you normally pay a reservation deposit. The agreement should clearly state the purchase price, payment terms, deadlines and what happens if either party withdraws. It is important that the reservation contract is reviewed properly, as it is the first step that secures the property in your name.
Q: What is the Contrato de Arras?
A: The Contrato de Arras is a private purchase contract used in Spain, most commonly for resale properties. It confirms the agreed terms of the purchase and includes the completion date and conditions. After this, both parties are committed to completing the transaction under the agreed conditions. This contract is a key stage in the buying process and should always be checked carefully before signing.
Q: What happens if the seller pulls out after signing the Arras contract?
A: If the seller withdraws after signing the Arras contract, they are legally required to return the buyer’s deposit and pay the same amount again as compensation. In practice, this means the buyer must receive double the deposit amount. This is one of the key protections for buyers in Spain and is exactly why the Arras contract is taken seriously by both parties.
Q: What happens if the buyer pulls out after signing the Arras contract?
A: If the buyer decides to withdraw after signing the Arras contract, the deposit is normally lost. This is the standard structure of the agreement and is intended to protect the seller if the buyer changes their mind after committing. However, the exact terms can vary slightly depending on how the contract is written, so it is important that your lawyer reviews it before you sign.
Costs & taxes
Q: What are the total buying costs in Spain?
A: In addition to the purchase price, you should always budget for buying costs in Spain. These costs usually include property transfer tax (or VAT for new builds), notary fees, land registry fees and legal fees. As a general guideline, most buyers should budget around 10–14% on top of the purchase price, depending on whether the property is new build or resale, and which region you are buying in. Your lawyer will normally provide a full breakdown before you proceed, so you know exactly what to expect. You can also ask your real estate agent which tax rate is applied and for estimated costs.
Q: What taxes do you pay when buying property in Spain?
A: The main tax depends on whether you are buying a resale property or a new build.
For resale properties, you pay a property transfer tax (ITP).
For new builds, you pay VAT (IVA) and stamp duty (AJD).
The percentage varies depending on the region and the type of property, so it is important to confirm the correct rates before committing. Your lawyer will calculate this as part of the purchase process.
Q: What is ITP tax in Spain?
A: ITP is the property transfer tax paid when buying a resale property in Spain. It is calculated as a percentage of the purchase price and is paid shortly after completion. The rate depends on the region where the property is located. This is one of the main costs to consider when budgeting for a resale purchase, and it can make a significant difference to the overall total.
Q: What is IVA (VAT) on new build properties in Spain?
A: IVA is the Spanish VAT paid when purchasing a new build property directly from a developer. It is charged instead of ITP. The IVA rate depends on the type of property, but it is typically applied to the full purchase price and is paid as part of the completion process. Your lawyer will confirm the exact percentage and ensure it is handled correctly.
Q: What is AJD stamp duty in Spain?
A: AJD is a stamp duty tax that applies mainly to new build purchases. It is paid in addition to IVA and is calculated as a percentage of the purchase price. The rate varies depending on the region. It is a standard cost when buying a new build and is usually paid shortly after completion, together with the other taxes.
Q: What are the notary and land registry fees in Spain?
A: Notary fees cover the official signing of the title deed, and land registry fees cover registering the property in your name after completion. These costs are normally relatively small compared to the taxes, but they are always part of the total budget. The exact amount depends on the purchase price and the complexity of the transaction.
Q: Who pays the estate agent commission in Spain?
A: In Spain, the estate agent commission is normally paid by the seller, not the buyer. This is the standard structure in most transactions. As a buyer, you typically do not pay the agent directly. However, it is still important to work with an agent who is transparent about how the transaction is handled and who represents the process professionally from start to finish.
Mortgages & financing
Q: Can foreigners get a mortgage in Spain?
A: Yes, foreigners can apply for a mortgage in Spain, and it is very common for non-resident buyers to finance part of their purchase through a Spanish bank. The bank will assess your income, debts and financial situation, and the process also includes a valuation of the property. The amount you can borrow depends on whether you are a resident or non-resident, and on the bank’s criteria.
If you are considering financing, it is always recommended to check your options early.
Q: How much deposit do I need as a non-resident?
A: Most non-resident buyers in Spain should expect to pay a larger deposit compared to residents. In many cases, Spanish banks finance up to 60–70% of the property value for non-residents. This means you normally need at least 30–40% as a deposit, plus additional funds to cover taxes and purchase costs. The exact percentage depends on the bank, your financial profile and the property itself.
Q: How long does mortgage approval take in Spain?
A: Mortgage approval in Spain can take a few weeks, but the timeline depends on the bank, the documentation provided and how quickly the valuation is completed. In most cases, buyers should allow around 3–6 weeks for the full mortgage process, although it can be quicker in straightforward cases. If you are buying a resale property, it is important to factor this in, as completion dates are often agreed early in the process.
Ownership & running costs
Q: What are the yearly costs of owning property in Spain?
A: Owning a property in Spain comes with annual running costs, even if the property is not rented out or if you haven’t been there. The main costs usually include local property tax (IBI), community fees if the property is part of an urbanisation, home insurance and utilities. Depending on the property type, you may also have maintenance costs such as pool or garden services. If you are a non-resident, you may also need to pay an annual non-resident property tax declaration. Your total yearly costs will depend on the location, property size and whether the home is part of a community.
Q: What is IBI tax in Spain?
A: IBI is the annual local property tax in Spain, similar to council tax. It is paid to the town hall and is charged every year by the registered owner. The amount depends on the property’s cadastral value and the municipality. It is a standard yearly cost and one of the main taxes you should expect as a property owner in Spain.
Q: What are community fees in Spain?
A: Community fees are annual or quarterly fees paid by owners in apartments, gated communities and urbanisations. These fees cover the maintenance and running costs of shared areas such as gardens, swimming pools, lifts, security, lighting and general upkeep. The amount varies depending on the community and the facilities offered. Before buying, it is important to confirm the exact community fee and whether there are any outstanding payments linked to the property.
Renting, Tourist Licences & New Build Security
Q: Can I rent out my property in Spain?
A: Yes, you can rent out your property in Spain, but the rules depend on how you plan to rent it and where the property is located. Long-term rentals and short-term holiday rentals are regulated differently, and requirements can vary by region. If you are planning to rent the property, it is important to understand the local regulations and tax obligations before buying, as this can affect both your usage and your return.
Q: Do I need a tourist licence to rent out my property?
A: If you plan to rent your property on a short-term or holiday basis, a tourist licence is usually required. The exact rules depend on the region and sometimes even on the municipality or type of property. Some areas have specific restrictions, community rules or zoning requirements, so it is important to check whether a licence is available for the property you are considering before you commit to the purchase.
Q: Do non-residents pay taxes in Spain if they don’t rent out the property?
A: Yes, non-resident property owners in Spain are generally required to file a non-resident tax declaration even if the property is not rented out. This tax is based on an imputed income calculated from the property’s cadastral value. It is a standard obligation for non-resident owners and is usually handled annually.
Q: Is buying a new build property in Spain safe?
A: Buying a new build property in Spain can be safe, provided the correct legal checks are carried out. Developers are required to meet specific legal and financial obligations, including guarantees for payments made during construction. Having an independent lawyer review the developer, licences, bank guarantees and contracts is essential. When done properly, new build purchases are a common and secure option for many buyers.
Q: What are the risks of buying off-plan in Spain?
A: The main risks when buying off-plan relate to delays, changes to specifications or issues with licences if due diligence is not done correctly. These risks can be managed by ensuring the developer has the correct building permits, that all stage payments are protected by bank guarantees, and that contracts clearly define delivery dates and penalties. With proper legal guidance, many buyers purchase off-plan successfully and without issues.
