How to Buy Property in Spain
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Time to read: 4 min
Buying a home in Spain is straightforward if you follow the key steps and understand the requirements for residents and non-residents. Here’s a clear, compact guide.
Table of Contents
Step 1 to Owning Your First Property in Spain: Obtaining Your NIE (Número de Identidad de Extranjero) Step 2 – Open a Spanish Bank Account Step 3 – Mortgage Pre-Approval Step 4 – Hire a Lawyer (Abogado) Step 5 – Property Search & Offer Step 6 – Due Diligence & Deposit (Reserva / Arras) Step 7 – Notary & Final Completion Final Tips for Buyers FAQ You Might Find Interesting:
Step 1 to Owning Your First Property in Spain: Obtaining Your NIE (Número de Identidad de Extranjero)
This is the first real “welcome to Spain” step every buyer must take.
Living here for 8 years, I’ve seen many clients delay the process just because their NIE wasn’t ready, so I always help them prepare it early.
Why: Required for any property purchase, taxes, utilities, and bank processes.
What you need: Passport + application form.
Where: Spanish consulate abroad or local police station in Spain.
Step 2 – Open a Spanish Bank Account
As a father of two who still works online from home, I always guide clients toward banks that offer smooth digital services to avoid unnecessary appointments.
Why: Needed for mortgage, payments, taxes and fees.
Tip: Compare fees and online banking options.
Step 3 – Mortgage Pre-Approval
Having seen buyers lose great homes because they weren’t pre-approved, I make sure clients prepare documents early and compare banks properly.
What banks require:
Income + asset proof
Tax returns
Bank statements
NIE
Employment contract or company docs
Loan conditions:
Residents: up to 80% LTV
Non-residents: 60–70% LTV
Compare fixed vs variable (Euribor + margin)
Understand TIN vs TAE (nominal vs effective interest rate)
Pros:
Predictable process
Competitive interest rates
Cons:
Higher down payment for non-residents
Paperwork can take time
Step 4 – Hire a Lawyer (Abogado)
I’ve heard many sad stories from people who tried to buy without a lawyer, so I always connect clients with trusted legal partners who avoid these risks.
Why: Protects you legally and avoids hidden debts.
You provide: Passport, NIE, Power of Attorney (if abroad).
Fees: Typically 1–1.5% of the property price.
Pros:
Full legal check
Safeguards contracts and payments
Cons:
Extra cost, but essential
Step 5 – Property Search & Offer
Now the fun part begins — exploring neighborhoods, lifestyle, and investment potential.
After 8 years in Spain and raising two kids here, I help clients choose areas that match their way of life rather than just relying on online photos.
Process:
Visit neighborhoods
Compare prices
Evaluate renovation needs
Submit official offer
Step 6 – Due Diligence & Deposit (Reserva / Arras)
This is where security meets commitment — your lawyer confirms the property is safe before money changes hands.
Lawyer verifies ownership, debts, and registry info
Reservation fee: €3,000–€10,000
Arras contract: 10% deposit with penalty clauses
Step 7 – Notary & Final Completion
Sign the Escritura at the notary.
Costs:
ITP (resale): 6–10%
VAT + Stamp Duty (new build): 10% + ~1.5%
Notary + registry + legal fees
Final Tips for Buyers
Always compare mortgages early
Use a lawyer—even if optional
Factor 12–14% extra on top of property price
Avoid paying deposits without legal checks
Buying property in Spain should feel exciting — full of alegría from start to finish.
As Izidor Isakov, working with Alegria Real Estate in the premium segment, I guide clients through every step: choosing the right area, securing the best deals, navigating legal requirements, and ensuring a smooth, safe purchase.
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FAQ
Can foreigners buy property in Spain without living there?
Yes — Spain places no restrictions on foreign buyers owning property, even if they never become residents. Many of my international clients purchase holiday homes or investment properties while living abroad, and we manage the full process remotely, including viewings, paperwork, and coordination with lawyers.
How long does the entire buying process usually take?
On average, 4–8 weeks from choosing the property to signing at the notary. Some premium clients complete even faster when all documents are prepared early. The biggest time saver is having the mortgage and legal checks initiated right away.
Is it possible to negotiate property prices in Spain?
Yes — negotiation is common, especially on resale properties. In the premium segment, I often help clients secure better terms not only on price, but also on furniture, payment schedules, or included renovations, depending on the seller’s situation.
What ongoing yearly costs should property owners expect?
Besides utilities, owners should plan for:
IBI (municipal tax)
Community fees (if the building has a pool, garden, security, etc.)
Home insurance
Non-resident income tax, if applicable
These vary by area, so I always calculate the realistic yearly cost for clients before they commit.
Can I rent out my Spanish property legally?
Yes — but rules differ by region and even by city district. Some require a tourist license, some allow only long-term rentals, and premium coastal zones often have waiting lists. I advise clients case by case and connect them with local experts to avoid fines or restrictions.
