Property Buying Process in Spain: Complete Checklist for Foreigners
|
|
Time to read: 5 min
Buying property in Spain is not complicated — but the process is very different from most countries.
Understanding each legal and financial step in advance can save you thousands of euros and months of delays.
This guide focuses purely on the practical and legal process of buying property in Spain, from obtaining your NIE to signing the final deed at the notary.
If you want a deeper overview of the market, risks, regions, and investment opportunities, read our complete guide to buying property in Spain.
Table of Contents
Overview: How the Property Buying Process Works in Spain Typical Steps Typical Timeline Step 1: Obtain Your NIE Number Why You Need a NIE Common Mistake Practical Tip: Step 2: Open a Spanish Bank Account What It Is Used For Practical Tip Step 3: Mortgage Pre-Approval (If Financing) Typical Financing Conditions Documents Required by Banks Practical Tip Step 4: Hire an Independent Property Lawyer What Your Lawyer Does Typical Legal Fees Risk Warning Step 5: Property Search and Offer Key Factors to Evaluate Submitting an Offer Step 6: Due Diligence and Deposit (Reserva / Arras) Reserva (Reservation Agreement) Arras Contract (Private Purchase Agreement) Important Warning Step 7: Notary and Final Completion Typical Purchase Costs After Signing How Much Extra Should You Budget? Budget Guidelines Common Mistakes When Buying Property in Spain Most Frequent Errors Property Buying Checklist in Spain Before Signing Any Contract Final Thoughts FAQ You Might Find Interesting:
Overview: How the Property Buying Process Works in Spain
Before exploring each step in detail, here is a simplified overview of the process:
Typical Steps
- Obtain NIE number
- Open a Spanish bank account
- Get mortgage pre-approval (if needed)
- Find a property and make an offer
- Conduct legal due diligence
- Sign reservation or arras contract
- Complete the purchase at the notary
Typical Timeline
4 to 12 weeks (depending on financing and legal checks)
Step 1: Obtain Your NIE Number
The NIE (Número de Identidad de Extranjero) is mandatory for any property transaction in Spain.
Why You Need a NIE
- property purchase
- taxes
- bank account
- utilities
Common Mistake
Many buyers start searching for property before obtaining their NIE, which often delays the process.
Practical Tip:
Apply for your NIE as early as possible, ideally before visiting properties.
Step 2: Open a Spanish Bank Account
A Spanish bank account is required to manage payments related to the purchase.
What It Is Used For
- Deposits and purchase payments
- Taxes and fees
- Mortgage transactions
Practical Tip
Choose a bank with strong online banking and English-speaking support.
Step 3: Mortgage Pre-Approval (If Financing)
If you plan to finance your property purchase, mortgage pre-approval is essential.
Typical Financing Conditions
- Residents: up to 80% of the property value
- Non-residents: 60–70% of the property value
Documents Required by Banks
- Proof of income and assets
- Tax returns
- Bank statements
- Employment or company documents
Practical Tip
Buyers with mortgage pre-approval often secure better deals and avoid losing properties.
Step 4: Hire an Independent Property Lawyer
Hiring an independent lawyer (abogado) is strongly recommended when buying property in Spain.
What Your Lawyer Does
- Verifies ownership and legal status
- Checks debts and charges
- Reviews contracts
- Represents you if you are abroad
Typical Legal Fees
Usually 1%–1.5% of the purchase price
Risk Warning
Buying property without a lawyer can result in hidden debts or legal disputes.
Step 5: Property Search and Offer
Once your finances and legal support are ready, you can start the property search.
Key Factors to Evaluate
- Location and infrastructure
- Rental potential
- Legal status
- Renovation costs
Submitting an Offer
Once you have chosen a property, you can submit a formal offer to the seller. Bear in mind that this should be covered by a reservation guarantee; nobody will negotiate unless you put money on the table.
Step 6: Due Diligence and Deposit (Reserva / Arras)
Reserva (Reservation Agreement)
€3,000–€11,000
temporarily removes the property from the market
Arras Contract (Private Purchase Agreement)
- Usually 10% of the purchase price
- Defines penalties if either party withdraws
Important Warning
Never pay a deposit before legal verification!
Step 7: Notary and Final Completion
The final step is signing the public deed (Escritura Pública) at the notary.
Typical Purchase Costs
- Property transfer tax (resale): 7%
- VAT + stamp duty (new build): 11–12%
- Notary, registry, and legal fees
After Signing
- You receive the keys
- Ownership is registered
How Much Extra Should You Budget?
Budget Guidelines
- Resale property: +10–13%
- New build: +12–15%
These costs include taxes, legal fees, and administrative expenses.
Common Mistakes When Buying Property in Spain
Most Frequent Errors
- Starting without NIE
- Paying deposits without legal checks
- Underestimating taxes and fees
- Relying only on the seller’s agent
- Choosing a location without lifestyle analysis
Property Buying Checklist in Spain
Before Signing Any Contract
Make sure you have:
- NIE number
- Spanish bank account
- Mortgage approval (if needed)
- Independent lawyer
- Legal property report
- Clear budget including taxes
Final Thoughts
Buying property in Spain should be exciting, not stressful.
With the right preparation and professional support, the process can be smooth, secure, and efficient.
If you want personalised guidance tailored to your situation, I help buyers navigate the entire process—from choosing the right area to signing the final deed.
👉 Book a free consultation to discuss your property plans in Spain.
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.
