Buying Property in Spain – The Complete Step-by-Step Guide

Buying a property in Spain is a dream for many – whether it’s a holiday home, a retirement retreat, or a long-term investment. To make sure everything goes smoothly, proper preparation is key. This guide explains every important step – from planning and financing to legal procedures and property registration.

1. Preparation and Planning

• Set your budget: Include the purchase price, taxes, notary fees, renovation costs, and ongoing expenses.
• Define the type of property: Apartment, villa, new build, or resale – decide what suits your needs best.
• Choose your preferred region: Research locations carefully – proximity to the sea, transport, and amenities matters.
• Clarify your financing: Check your equity, mortgage options, and financing conditions in advance.

2. Legal Requirements

• Apply for an NIE number: The Spanish tax identification number for foreigners – essential for any property purchase.
• Hire a Spanish property lawyer: A local lawyer ensures all documents are legal and protects your interests.
• Review tax obligations and visa options: Learn about your tax duties and possibilities like the Golden Visa.

3. Property Search and Viewings

• Use trusted agents and portals: Work only with registered and reputable real estate professionals.
• Visit and compare several properties: Viewing multiple homes helps you understand local market prices and quality.
• Check the property condition: Pay attention to the year of construction, renovations, and energy efficiency.
• Explore the neighborhood: Assess infrastructure, safety, public transport, and local amenities.

4. Property Due Diligence

• Obtain a “Nota Simple”: The property register extract shows ownership and any debts or charges.
• Ensure the property is debt-free: Confirm there are no mortgages, liens, or unpaid taxes.
• Verify building permits: Especially important for new constructions or recent renovations.
• Technical inspection (optional): Consider hiring an independent surveyor for a detailed property check.

5. Reservation and Pre-Contract

• Sign a reservation agreement: Typically includes a 3–5% deposit to secure the property.
• Define clear terms: Establish deadlines, payment conditions, and cancellation policies in writing.

6. Financing and Payment Process

• Compare mortgage offers: Review interest rates, loan terms, and additional costs carefully.
• Agree on a payment plan: Payments should always go through secure, verified accounts.
• Use professional escrow: Your lawyer or notary can handle safe fund transfers.

7. The Purchase Deed (Escritura de compraventa)

• Have your lawyer review the contract: Make sure all legal requirements are met before signing.
• Sign at the notary: The official sale takes place in front of a Spanish notary.
• Make the final payment: After signing, ownership is transferred and full payment is completed.

8. After the Purchase

• Register ownership: Update the property title in the Land Registry (Registro de la Propiedad).
• Pay taxes and fees: Includes ITP or IVA, notary, registration, and legal fees.
• Set up utilities: Transfer electricity, water, gas, and internet accounts to your name.
• Arrange insurance: Property and home insurance are highly recommended.

9. Ongoing Costs and Property Management

• Community fees: Applicable for apartments or shared complexes.
• Annual property tax (IBI): Must be paid every year to the local council.
• Waste collection and local charges: Check with your local municipality for additional fees.
• Maintenance and upkeep: Plan for regular maintenance, cleaning, and potential repairs.

Expert Tip

This checklist provides a general overview. For your specific situation, we strongly recommend professional advice from a qualified Spanish lawyer or tax expert. Proper legal guidance ensures a smooth and secure property purchase in Spain.