Buying Property in Spain - Complete Guide

Last Updated: February 2026
Source: WhatsApp community groups (Drugovanje Valencia, Imigracija)

Overview

Buying property in Spain as a foreigner is straightforward, but there are important legal and financial steps you must follow. This guide covers the entire process from searching to signing at the notary.

Legal Right to Buy

Good news: Foreigners can buy property in Spain!

Requirements:

• ✅ NIE number (required for purchase)
• ✅ Spanish bank account (for payments and bills)
• ✅ No residence permit needed (can buy as non-resident)

Non-residents can:

• Buy property
• Rent it out
• Use as vacation home
• Sell later

Types of Property

New Build (Obra Nueva)

Pros:

• Modern construction
• Warranty (10 years structural)
• Energy efficient
• No renovation needed
• Often includes gym, pool, parking

Cons:

• Higher price per m²
• May have delays
• No established community yet

Typical cost: €2,500-4,000/m² (Valencia)

Resale (Segunda Mano)

Pros:

• Lower price
• Established neighborhoods
• Immediate availability
• See exact condition

Cons:

• May need renovation
• Older construction
• Hidden issues possible
• Community already established (good or bad)

Typical cost: €1,500-3,000/m² (Valencia)

The Purchase Process

Step 1: Get NIE Number

Critical first step - Can't buy without it!

• See our NIE/TIE Guide
• Takes 1-2 weeks if you're in Spain
• Or get it at Spanish consulate before arriving

Step 2: Open Bank Account

Required for:

• Mortgage payments
• Property taxes (IBI)
• Utility bills
• Community fees

Documents needed:

• NIE
• Passport
• Proof of address
• Initial deposit (€50-100)

Step 3: Find a Property

Popular platforms:

• Idealista.com - Largest inventory
• Fotocasa.es - Good selection
• Habitaclia.com - Barcelona area
• Real estate agents

Tips:

• Visit in person (don't buy sight unseen!)
• Check multiple properties
• Visit neighborhood at different times
• Talk to neighbors if possible

Step 4: Make an Offer

Negotiation:

• Asking price is usually negotiable
• Expect 5-15% discount possible
• Depends on market conditions
• More flexible with resales than new builds

Reserva (Reservation):

• €3,000-6,000 deposit
• Holds property off market
• Usually non-refundable if you back out
• Deducted from final price

Step 5: Get Nota Simple (Property Registry Check)

CRITICAL STEP - DO NOT SKIP!

What is Nota Simple:

• Official property registry document
• Shows legal status of property
• Reveals debts, liens, mortgages

What it includes:

• Construction date
• Previous owners and sale prices
• Current owner(s)
• Outstanding debts (hipotecas)
• Legal issues, embargoes
• Property boundaries

Cost: €10-30
Where: Registro de la Propiedad or online
How long: Same day

Red flags:

• Multiple owners (complicated)
• Debts/mortgages not disclosed
• Ownership disputes
• Property boundaries unclear

Community warning:

"Nota simple mirise na problem" (if it smells fishy, it is!) "This is a country of scammers - be careful"

Step 6: Hire a Lawyer (MANDATORY)

Why you NEED a lawyer:

• Verify nota simple
• Check for hidden debts
• Review contracts
• Represent you at signing
• Ensure clean title transfer
• Protect your interests

Cost: 1% of purchase price + IVA (21%)
Example: €200,000 property = €2,000 + €420 IVA = €2,420

Community consensus: "Never skip the lawyer - it's standard 1% + IVA"

What lawyer does:

• Due diligence on property
• Verify seller's identity
• Check planning permissions
• Calculate exact taxes due
• Draft/review contracts
• Attend notary signing

Step 7: Private Purchase Contract (Contrato de Arras)

Two types:

1. Arras Confirmatorias (Most common):

• Deposit: 10% of price
• Buyer backs out: loses deposit
• Seller backs out: returns double
• Both parties committed

2. Arras Penitenciales (Less common):

• Either party can back out
• Penalty is the deposit amount

What contract includes:

• Final purchase price
• Payment schedule
• Completion date
• Conditions (mortgage approval, etc.)
• What's included (furniture, appliances)

Timing: 1-3 months before final signing

Step 8: Mortgage (Hipoteca) - Optional

If financing:

Requirements:

• NIE
• Employment proof or income statements
• Tax returns
• Bank statements (3-6 months)
• Property valuation

Terms:

• Down payment: 20-30% (non-residents: 30-40%)
• Interest rates: 2-4% (variable or fixed)
• Term: 15-30 years
• Max age at end: Usually 75

Process:

• Apply with multiple banks
• Get pre-approval
• Official valuation
• Approval: 2-6 weeks

Community experience:

"We had complications with hipoteka - debts + two owners (one married, so wife involved too)"

Step 9: Final Signing at Notary (Escritura)

The big day!

Who attends:

• Buyer (you)
• Seller
• Notary
• Lawyers (yours and seller's)
• Translator (if needed)

What happens:

1. Notary reads contract (in Spanish)
2. Verifies all parties
3. Confirms payment
4. Both parties sign
5. Deed (escritura) issued
6. Ownership transfers immediately

Duration: 30-60 minutes

Documents needed:

• NIE
• Passport
• Proof of payment (bank transfer confirmation)
• Insurance policy (starting that day)

Step 10: Register Property

Registro de la Propiedad:

• Your lawyer handles this
• Property registered in your name
• Receive official property deed
• Takes 2-4 weeks

You now officially own it!

Costs Breakdown

Purchase Costs (Resale Property - €200,000 example)

Purchase Costs (New Build - €200,000 example)

Key difference: Resale = ITP (10%), New = IVA (10%) + AJD (1.5%)

Annual Costs (After Purchase)

Ongoing Expenses

Non-resident tax: If not living in Spain >183 days, pay imputed income tax (~€100-300/year)

Important Due Diligence

Check These Before Buying

1. Nota Simple (Mandatory)

• No hidden debts
• Clean title
• Correct boundaries
• Current owner verified

2. Community Fees Status

• Are fees up to date?
• Any pending lawsuits?
• Special assessments planned?
• Community financial health

3. Energy Certificate (Certificado Energético)

• Required by law
• Rates A (best) to G (worst)
• Affects utility costs
• Seller must provide

4. Cédula de Habitabilidad

• Certificate of habitability
• Confirms property meets standards
• Required in some regions
• Check if valid/updated

5. Building Permits

• Any illegal additions?
• Terrace/balcony enclosures legal?
• Swimming pool permitted?
• Basement conversion approved?

6. Debts Transfer with Property

• Community fee debts transfer to new owner
• IBI debts also transfer
• Check payment status before buying

Common Problems & Solutions

Problem: Multiple Owners

Situation: Property owned by siblings, divorced couple, inheritance

Solution:

• ALL owners must sign
• If married, spouse also signs (even if not on deed)
• Legal representation required
• Lawyer must verify all parties

Problem: Hidden Debts

Situation: Community fees, IBI unpaid, mortgage not disclosed

Solution:

• Nota simple shows mortgages
• Request community fee certificate
• Check IBI payment status
• Lawyer verifies everything

Problem: Illegal Constructions

Situation: Terrace enclosed, extra room built without permit

Solution:

• Architect inspection
• Legalización (legalization) process
• May need to demolish
• Or negotiate price reduction

Problem: Tourist License Issues

Situation: Want to rent on Airbnb but license denied

Solution:

• Check local regulations before buying
• Valencia has strict licensing
• Some buildings prohibit tourist rentals
• Verify in community statutes

Financing Options

Cash Purchase

Pros:

• No mortgage approval needed
• Faster process
• No interest costs
• Stronger negotiating position

Cons:

• Ties up capital
• Less flexibility

Spanish Mortgage

Pros:

• Leverage (keep cash invested)
• Low interest rates
• Tax deductible (residents)

Cons:

• More paperwork
• Requires income proof
• Higher down payment for non-residents

Foreign Mortgage

Pros:

• Potentially better rates
• Easier qualification

Cons:

• Currency exchange risk
• More complex
• Not all banks offer

Taxes

Purchase Taxes (One-time)

Resale property:

• ITP (Transfer Tax): 10% in Valencia, 6-10% other regions

New build:

• IVA (VAT): 10% residential
• AJD (Stamp Duty): 1.5% in Valencia

Annual Taxes

IBI (Property Tax):

• 0.4-1.1% of cadastral value
• Paid annually
• Can be split into installments

Non-resident Income Tax:

• If you don't live in Spain >183 days/year
• Imputed income tax on property value
• ~1-2% of cadastral value
• Filed annually

Wealth Tax:

• If property + assets > €700,000
• Varies by region
• File annually

Selling Taxes (Future)

Capital Gains Tax:

• Residents: 19-23% on profit
• Non-residents: 19% on profit

Plusvalía Municipal:

• Local tax on land value increase
• Varies by municipality and years owned
• Seller usually pays

Tips from the Community

Before Buying

✅ "Get a good lawyer - 1% + IVA is standard"
✅ "Always get nota simple - it shows everything"
✅ "Don't trust verbal promises - get it in writing"
✅ "Visit the property multiple times, different hours"
✅ "Talk to neighbors if possible"
✅ "Check community meeting minutes"
✅ "Verify all measurements - they lie sometimes"

Red Flags

❌ Seller rushing you - Take your time
❌ Won't provide nota simple - Major red flag
❌ Price too good to be true - Usually is
❌ Complicated ownership structure - Lawyer must verify
❌ Multiple real estate agents - Confused situation
❌ "We'll fix that later" - Get it fixed before signing

Recommended Professionals

Lawyers

Check our Recommended Professionals Guide

Standard fees:

• Purchase: 1% of price + 21% IVA
• Sales: Similar
• Consultations: Usually free initially

Community feedback:

"I have a good lawyer, a Valencian. He's handled several deals for me. Forget consultations - lawyer takes no responsibility there. If nota simple smells fishy, you need a lawyer who takes responsibility. 1% + IVA is standard."

Gestores

Services:

• Tax paperwork
• Utility transfers
• NIE applications
• Property registration follow-up

Cost: €300-800 depending on services

Special Situations

Buying as Non-Resident

Additional requirements:

• Spanish bank account mandatory
• Higher mortgage down payment (30-40%)
• Non-resident tax obligations
• May need fiscal representative

Buying with Partner/Spouse

Options:

1. Joint ownership (50/50) - Both on deed equally
2. Tenants in common - Specified percentages
3. Sole ownership - One person only

Marriage affects ownership - Community property laws apply

Buying Through Company

Possible but:

• More complex
• Different tax treatment
• Legal advice essential
• Usually for investment properties

Inheritance Planning

Important:

• Spanish inheritance law applies to Spanish property
• Even if you're not Spanish
• Make a Spanish will
• Inheritance tax can be high (varies by region)

Regional Differences

Valencia:

• ITP: 10%
• AJD: 1.5%
• Inheritance tax: Moderate

Madrid:

• ITP: 6%
• AJD: 0.75%
• Inheritance tax: Low

Catalonia:

• ITP: 10%
• AJD: 1.5%
• Inheritance tax: High

Check current rates - They change!

Timeline

Typical purchase process:

Fast track: 2 months (cash purchase, motivated seller)
Typical: 3-4 months
With mortgage: 4-6 months

FAQs

Q: Can I buy as a tourist?
A: You need NIE first, but you don't need residency. Apply for NIE specifically for property purchase.

Q: Do I need to speak Spanish?
A: Helpful but not required. Hire English-speaking lawyer. Notary documents are in Spanish (translator available).

Q: Can I get a mortgage as non-resident?
A: Yes, but harder. Expect 30-40% down payment, stricter requirements.

Q: What if I find problems after buying?
A: If seller didn't disclose, legal action possible. Document EVERYTHING at signing.

Q: Can I rent it out?
A: Yes, but check tourist license requirements. Long-term rental easier than short-term.

Q: How much should I negotiate?
A: Resale: 5-15% off asking. New build: Less flexible, maybe 3-5%.

Q: Should I buy before or after getting residency?
A: Either works. Doesn't affect process significantly.

Useful Resources

Official:

• Registro de la Propiedad: Property registry
• Catastro: Cadastral office (property values)
• Agencia Tributaria: Tax authority

Community:

• WhatsApp group "Drugovanje Valencia" for advice
• Local expat forums

This guide is based on community experiences as of February 2026. Property law and taxes change frequently. Always consult with licensed lawyer and tax advisor for your specific situation. The purchase process can be smooth if you follow proper due diligence!