Buying property in Spain, step by step

Who can buy

Any foreign national may buy property in Spain, regardless of nationality and regardless of whether you live inside or outside the EU. You acquire full ownership and there is no limit on the number of properties. Purchase taxes are the same as for Spanish buyers; differences only arise in the annual taxes for non-residents.

Buying a property does not confer a right of residence. The scheme under which a property investment gave access to a residence permit was abolished in April 2025.

The steps

1. Orientation and budget

Start by deciding what the property is for: your own use, letting, or both. That shapes the choice between resale and new build, and between a tourist area and a quieter residential setting.

Work with the total outlay, not the asking price alone. On top of the purchase price come tax, notary, land registry, a lawyer and possibly a gestoría (an administrative agency that handles filings). As a rule of thumb, allow 12 to 14 per cent of the purchase price. Banks do not finance these costs, so they must come from your own funds. The breakdown is on our page on costs and taxes. If your income is in a currency other than the euro, factor exchange-rate risk into your planning as well.

2. NIE and a Spanish bank account

The NIE (número de identidad de extranjero) is your Spanish tax identification number, required to sign the deed and pay tax. You apply at a Spanish consulate in your home country, or in Spain at the immigration office or a police station, by appointment. You will need form EX-15, your passport and evidence of the reason, such as a statement of intent to buy, plus a small fee. Allow one to four weeks, so start early.

A Spanish bank account is not compulsory, but it makes paying the deposit, taxes and running costs considerably easier. If you need a mortgage, you will normally need one. If you cannot travel, a lawyer holding a notarial power of attorney can apply for the NIE, open the account and even sign the deed on your behalf. See also buying remotely.

3. Shortlisting and viewings

Visit the properties you are seriously considering in person, ideally at different times of day. Look at the condition of the home and communal areas, natural light, noise, the finish and the owners' community, and explore the neighbourhood.

4. Legal due diligence by an independent lawyer

A lawyer (abogado) is not required by law, but for a foreign buyer one is strongly recommended. Choose someone independent of both the seller and the selling agent. The notary does not represent your interests. Legal fees are indicatively around 1 per cent of the purchase price plus IVA (Spanish VAT).

Before you sign anything, the lawyer will check, among other things:

• the nota simple: an extract from the land registry (Registro de la Propiedad) showing the owner and any charges such as mortgages, attachments and easements. Have it requested again shortly before completion;
• that the IBI, the annual municipal property tax, has been paid;
• a certificate from the owners' community confirming the seller has no arrears;
• the licencia de primera ocupación or cédula de habitabilidad (certificate of habitability), needed to connect utilities;
• the energy performance certificate, which is mandatory for every sale;
• for renovated properties: whether the works were licensed and the registered floor area is correct.

For new builds, add the building licence and completion certificate, the ten-year structural defects insurance (seguro decenal) and the specification of finishes. If you are buying off-plan, see also buying new build off-plan. Before reserving, also look up the cadastral reference value, as it can raise the base on which transfer tax is calculated.

5. Reservation and the arras contract

A reservation agreement and a small deposit take the property off the market. Next comes the arras contract, the preliminary purchase agreement. It sets out the price, the conditions and the deadline for completion, and you pay a deposit of usually 10 per cent.

Under the most common form, arras penitenciales, the buyer forfeits the deposit if they withdraw; if the seller withdraws, they repay double. Under arras confirmatorias, the injured party can claim damages. The contract should state which form applies. If you need a mortgage, include a condition that returns your deposit if the bank declines to lend. Also agree how the current year's IBI will be apportioned. Never sign without your lawyer having reviewed the contract.

6. Financing

If you are buying with a mortgage, submit the application by this stage at the latest. Non-residents can usually borrow 60 to 70 per cent of the valuation from Spanish banks. Approval typically takes two to six weeks, so set the completion date accordingly. See financing.

7. Notarial deed and registration

You choose the notary, even if the seller suggests one. On completion day the notary explains the deed, verifies the parties' identity and the deed is signed. Payment is made by banker's draft or transfer, after which you receive the keys. With a mortgage, the loan deed is signed first and then the purchase deed; the bank pays the loan amount directly to the seller.

After completion you pay the tax: ITP (transfer tax) on a resale property, or AJD (stamp duty on the notarial deed) on a new build, where IVA will already have been paid to the developer. In Andalusia the deadline is two months. The property is then registered in your name at the land registry. Registration is not compulsory by law, but without it your ownership cannot be asserted against third parties.

8. After the purchase

After completion, transfer the IBI into your name at the town hall, change over the utility contracts, notify the owners' community and take out home insurance (compulsory with a mortgage). From then on you pay IBI, the refuse charge, community fees and utilities each year.

If you are not tax resident in Spain, you file a non-resident income tax return every year, even if you do not let the property. If you plan short-term letting, you will need a regional tourist registration (VFT, vivienda con fines turísticos) and must take the owners' community rules into account; see tourist licence. Seek advice from a local tax adviser.

Timeline

From orientation to handover of the keys usually takes two to five months. Once the property has been chosen, a purchase without a mortgage can often be completed within four to eight weeks.

How CostaVista supports you

CostaVista is your single point of contact throughout: from the first shortlist and viewings to coordination with the lawyer, financing partner and notary, and the practical matters after completion. If you would like to know what this looks like for your situation, please get in touch.

General information, as of October 2026. This is not legal, tax or financial advice; for your own situation, consult an independent specialist.