Before You Start: Essential Preparations
The property buying process in Spain typically takes 6–12 weeks from making an offer to receiving the keys, though it can be faster or slower depending on complexity. Before you begin searching, there are two administrative steps to complete.
Get your NIE
The NIE (Número de Identificación de Extranjero) is a tax identification number required for all property transactions, tax payments, and utility contracts in Spain. You can apply at a Spanish police station or immigration office, or at a Spanish consulate in your home country. Processing takes 1–3 weeks in Spain, or 4–8 weeks via a consulate. A lawyer or gestoría can also apply on your behalf for a fee of around €100–150.
Open a Spanish bank account
While not strictly mandatory, a Spanish bank account makes the purchase much simpler. You'll need it for the notary transfer, tax payments, utility direct debits, and any future mortgage payments. Most major banks (Santander, CaixaBank, BBVA, Sabadell) offer accounts for non-residents — bring your passport, NIE, and proof of address from your home country.
The Buying Process Step by Step
1. Find the property and conduct due diligence
Work with a local estate agent who knows your target area. On the Costa del Sol, agents typically represent the seller, so consider also engaging a buyer's agent or independent lawyer from the outset.
Once you've identified a property, your lawyer should verify:
- The Nota Simple from the Land Registry — confirms legal ownership, boundaries, and any charges or mortgages on the property
- Outstanding debts — in Spain, property debts (unpaid IBI, community fees, utility bills) can transfer to the new owner
- Urban planning compliance — especially important for rural properties, which sometimes have unlicensed extensions or are on protected land
- The energy efficiency certificate (CEE) — mandatory for all property sales
For a detailed breakdown of what to check, see our article on legal aspects of buying property in Spain.
2. Make an offer and sign the reservation contract
If you're happy with the property and the due diligence checks out, you make an offer. Once accepted, you sign a reservation contract and pay a holding deposit — typically €3,000–6,000. This takes the property off the market while the formal contract is prepared.
3. Sign the private purchase agreement (Contrato de Arras)
This is the binding contract between buyer and seller. The buyer pays a deposit — usually 10% of the purchase price. The contract specifies the completion date, the price, and the terms of the sale.
The penalty clauses are straightforward: if the buyer withdraws, they lose the deposit. If the seller withdraws, they must return double the deposit. Your lawyer should review this contract carefully before you sign.
4. Arrange financing (if applicable)
If you need a mortgage, this is the time to finalise it. Spanish banks typically lend 60–70% of the property value to non-residents. The bank will commission a property valuation (tasación), which costs €300–600. For more detail, see our guide to mortgages for foreign buyers.
5. Sign the public deed at the notary (Escritura Pública)
On completion day, both parties meet at the notary's office. The notary reads through the deed, verifies identities, and confirms all documents are in order. The buyer pays the remaining balance (usually by banker's cheque or bank transfer), and the property ownership is officially transferred. You receive the keys.
The notary is a neutral public official — they don't represent either party. Their role is to verify the legality of the transaction and ensure both parties understand the terms.
6. Register the property
After signing at the notary, the property must be registered in your name at the Registro de la Propiedad (Land Registry). Your lawyer or gestoría typically handles this. Registration usually takes 2–4 weeks and confirms your legal ownership.
7. Pay taxes and set up utilities
Your gestoría or lawyer will file the relevant tax payments — transfer tax or VAT depending on whether the property is resale or new-build. You'll also need to transfer utility contracts (electricity, water, gas, internet) into your name or set up new ones.
What It Costs
Beyond the purchase price, budget for approximately 10–13% in additional costs:
| Cost | Resale Property | New-Build Property |
|---|---|---|
| Property Transfer Tax (ITP) | 6–10% (varies by region; 7% in Andalusia) | — |
| VAT (IVA) | — | 10% |
| Stamp Duty (AJD) | — | 1–1.5% |
| Notary fees | €500–1,500 | €500–1,500 |
| Land Registry fees | €400–1,000 | €400–1,000 |
| Lawyer fees | 1% of price or €1,500+ fixed | 1% of price or €1,500+ fixed |
| Total additional costs | ~10–12% | ~12–13% |
For a full breakdown including ongoing costs, see our articles on taxes and fees and hidden costs when buying.
Common Pitfalls
The most frequent problems foreign buyers encounter are covered in detail in our guide to common buying mistakes. The short version: always hire your own independent lawyer, always check for property debts before signing anything, and never assume rental regulations allow short-term letting without checking the specific local rules.