Buying a home in Spain can be an exciting prospect for British, Irish, and other European expats, but it requires a solid understanding of local regulations. This guide walks you through each step—from initial planning to closing the sale—and explains the legal requirements, costs, and common pitfalls involved.
Get Expert Legal HelpBefore you even begin looking at properties, you need to prepare the basics.
This is a mandatory foreigner tax identification number required for any property purchase or tax payment in Spain. Apply for it early at a Spanish consulate or a local police station, as the process can take a few weeks.
You'll need a local bank account to handle payments, including the deposit, taxes, and ongoing utility bills.
Spanish lenders typically expect a 20–30% deposit, and you must also factor in significant closing costs. Save at least 25–30% of the purchase price to cover the deposit and these fees. It's also wise to monitor currency exchange rates if you're transferring large sums to avoid unexpected costs.
You can search for properties on popular websites like Idealista, Fotocasa, and Kyero, or work with local agents. While a reputable estate agent can be a great help, exercise caution:
Many agents in Spain work on a dual agency basis, representing both the buyer and the seller. Clarify their role and confirm their impartiality.
Agent commission, typically 3–6%, is usually paid by the seller. However, confirm this upfront, as some buyers may be asked to pay a small fee (1–3%).
A good sign is if the agent is a member of the local Colegio de Agentes de la Propiedad Inmobiliaria (COAPI).
When viewing properties, try to visit in person, inspect the interior and exterior thoroughly, and talk to neighbors if possible. An independent lawyer can also help you vet deals from the outset.
Once you've found a property, you'll make a written offer. If it's accepted, you'll typically sign a reservation agreement and pay a small deposit (often €1,000–€5,000) to take the property off the market for a short period (e.g., 1–4 weeks). This time is crucial for completing due diligence.
After due diligence, you'll sign the main purchase contract (contrato de arras or option to buy contract) and pay a larger deposit, usually 10% of the price.
This is a critical step where you hire a Spanish property lawyer (abogado) to review everything. Key checks include:
The notary, an impartial government officer, will also verify this information at closing, but your lawyer is your personal representative and is essential for protecting your interests.
The final step is to formalize the sale at a Notary's office. All property transfers in Spain must be done via a public deed (escritura pública) signed before a Notary.
If you are getting a mortgage, the loan documents will also be signed at the Notary. Non-residents are typically limited to borrowing 60–70% of the property's value.
At the Notary's office, the official reads out the deed terms, confirms identities, and ensures all taxes and fees are calculated. You then sign the deed and pay the remaining balance.
The Notary will submit the new ownership to the Land Registry. You are only the formal owner against third parties once this registration is complete, which can take a couple of months.
Budget for significant additional costs, which typically amount to 10–15% of the purchase price.
After purchasing, you will have ongoing tax obligations, including the annual municipal property tax (IBI) and, for non-residents, a yearly non-resident income tax (IRNR) on the imputed rental value of the property.
Spanish banks lend to foreign buyers, but with different terms than for residents. Non-residents can typically get a mortgage for up to 60–70% of the property value, with fixed interest rates. You must provide proof of income, assets, and credit history.
Once the deed is signed, a few final tasks remain:
Spain's 17 autonomous regions have different tax rates and property rules.
City and coastal properties are often more expensive but usually have clear legal status. Rural land can be cheaper but often has strict zoning laws, and illegal constructions are a risk.
Be extremely careful if you plan to rent out your property short-term. Each region has its own licensing requirements, and some areas have strict bans or high fees on tourist lets.
Always hire an independent lawyer to verify ownership, debts, and licenses.
Budget for the 10–15% in additional fees on top of the purchase price.
Failing to check for proper building or rental licenses can lead to legal problems and heavy fines.
Take your time with viewings and checks. Buying "sight-unseen" is a major risk.
In Spain, a Notary is legally required for the transaction, but a lawyer is not. However, a lawyer is highly recommended as they represent your personal interests, while the Notary's role is to ensure the legal compliance of the deed impartially.
Performs all due diligence, reviews and drafts contracts, and can represent you with power of attorney.
Confirms identities, calculates taxes, and issues the public deed that makes the sale official.
By engaging both a local lawyer and the Notary, you ensure the purchase is valid and your investment is protected. By following these steps, you can navigate the process with confidence and enjoy your new home in Spain.
Our experienced bilingual lawyers guide UK, Irish & European expats through every step of buying property in Spain. From NIE applications to final registration, we ensure your purchase is secure and stress-free.
Speak directly to Olivier Roper
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