Buying Property in Spain: Complete Guide (2026)

Buying property in Spain is exciting and terrifying in roughly equal measure. The market is transparent, prices are reasonable by Northern European standards, and the legal framework — once you understand it — protects buyers well. But the process is different from what you’re used to, the costs stack up faster than you’d expect, and the opportunities for expensive mistakes are real.

This guide walks you through the entire process: from first search to turning the key.

Before You Start: What You Need

NIE (Número de Identificación de Extranjero)

You cannot buy property without an NIE. This is your Spanish tax identification number, required for every transaction — purchase, mortgage, utility contracts, insurance. Get it early. The application process can take weeks.

Spanish Bank Account

You’ll need a Spanish bank account for the purchase. Mortgage payments, utility direct debits, community fees, and IBI are all paid from a Spanish account. Non-resident accounts are straightforward to open — most banks require your passport, NIE, and proof of income.

A Lawyer (Abogado)

This is non-negotiable. Spanish property transactions do not have the same buyer protections built into the process that UK conveyancing provides. The notary is not your lawyer — they verify the transaction is legal, but they don’t protect your specific interests.

Your lawyer will:

• Check the property’s legal status in the Registro de la Propiedad (Land Registry)
• Verify there are no debts, charges, or liens on the property
• Confirm the seller has the legal right to sell
• Check planning permissions and building licences
• Review and negotiate contracts
• Attend the notary signing (or hold power of attorney if you can’t attend)

Cost: 1-1.5% of the purchase price, or a fixed fee of EUR 1,500-3,000 for standard transactions. Worth every cent.

Critical rule: Use an independent lawyer — not one recommended by the estate agent, not the developer’s lawyer, not a friend of the seller. Your lawyer works for you and only you.

The Buying Process: Step by Step

Step 1: Find the Property

The main property portals in Spain:

• Idealista.com — Spain’s largest property portal. Most comprehensive listings.
• Fotocasa.es — second largest, strong in some areas
• Kyero.com — English-language portal focused on international buyers
• Local estate agents — many properties on the Costa del Sol are listed exclusively with local agents and don’t appear on portals. Walk into agencies in your target area.

Costa del Sol specifics: The market moves fast in popular areas (Marbella, Estepona, Fuengirola). If you see something you like, act quickly — viewing within days, not weeks. Off-plan developments by major developers (Taylor Wimpey, AEDAS, Neinor) often sell out before completion.

Step 2: Reservation Deposit (Señal)

Once you’ve found a property, you’ll typically pay a reservation deposit to take it off the market. This is:

• Amount: EUR 3,000–10,000 (varies)
• Purpose: Holds the property while your lawyer conducts due diligence
• Refundable? Usually yes, if your lawyer finds legal problems. The terms should be in writing.
• Timeline: Your lawyer typically has 2-4 weeks to complete checks

Never pay a reservation deposit without having a lawyer engaged. Never.

Step 3: Due Diligence (Your Lawyer’s Job)

Your lawyer will check:

• Nota Simple from the Land Registry — confirms ownership, boundaries, charges, mortgages on the property
• Planning status — is the property legal? Does it have a licencia de primera ocupación (first occupation licence)?
• Debts — outstanding IBI, community fees, utility bills (these can transfer to the new owner)
• Community issues — any pending special assessments (derramas), legal disputes, or planned works
• Building status — is it built according to the licence? Any illegal extensions?
• Energy Performance Certificate (EPC) — legally required for sale

Step 4: Private Purchase Contract (Contrato de Arras)

Once due diligence is clear, you sign the contrato de arras — the binding purchase agreement. This is the point of commitment.

• Deposit: Typically 10% of the purchase price
• Penalty clause (arras penitenciales): If the buyer pulls out, they lose the deposit. If the seller pulls out, they must return double the deposit.
• Completion date: Usually 4-8 weeks after signing, though this is negotiable
• Conditions: Your lawyer should include any conditions (mortgage approval, rectification of legal issues)

This contract is legally binding. Walking away costs you 10% of the property price. Make sure you’re committed before signing.

Step 5: Mortgage (If Needed)

Spanish banks offer mortgages to both residents and non-residents:

• Residents: Up to 80% loan-to-value (LTV)
• Non-residents: Up to 60-70% LTV
• Interest rates (2026): Fixed rates around 2.5-3.5%, variable (Euribor +) around 1.5-2.5%
• Term: Up to 25-30 years (age limit: typically mortgage must end by age 75)
• Required documents: Proof of income (employment contracts or tax returns for 2+ years), bank statements, existing property valuations, NIE, passport

Tip: Get mortgage pre-approval before house hunting. This strengthens your negotiating position and prevents the heartbreak of finding the perfect property and then failing to secure financing.

Mortgage broker or direct? A good broker knows which banks are lending to non-residents and can often secure better terms than walking into a branch. Expect to pay 0.5-1% of the mortgage amount in broker fees. Worth it for non-residents navigating the system for the first time.

Step 6: Completion at the Notary (Escritura Pública)

The big day. Buyer, seller (or their representatives with poder notarial), and the notary meet to sign the public deed (escritura pública de compraventa).

• The notary reads the deed aloud (yes, all of it — in Spanish)
• You pay the remaining balance (via banker’s draft — cheque bancario)
• The seller hands over the keys
• Your lawyer handles registration at the Land Registry afterward

If you don’t speak Spanish: You’ll need a sworn translator (traductor jurado) present at the notary. Your lawyer can arrange this. Cost: EUR 200-400.

The Costs: What You’ll Actually Pay

Budget 10-15% on top of the purchase price for a resale property, or 12-15% for a new build:

Resale Property

• Transfer Tax (Impuesto de Transmisiones Patrimoniales — ITP): 7% in Andalucía (since October 2021 reform — previously 8-10% on a sliding scale)
• Notary fees: EUR 600–1,200 (regulated, based on property price)
• Land Registry (Registro de la Propiedad): EUR 400–700
• Lawyer: 1-1.5% or EUR 1,500–3,000
• Mortgage costs (if applicable): Valuation EUR 300-500, arrangement fee 0.5-1%, AJD tax 1.5% of mortgage amount

New Build (From Developer)

• VAT (IVA): 10% (instead of ITP)
• Stamp Duty (AJD — Actos Jurídicos Documentados): 1.5% in Andalucía
• Notary, registry, lawyer: Same as resale

Example: EUR 300,000 Resale Apartment

• ITP (7%): EUR 21,000
• Notary: EUR 900
• Land Registry: EUR 550
• Lawyer: EUR 2,500
• Total additional costs: ~EUR 24,950 (8.3%)
• With mortgage add: valuation EUR 400 + arrangement EUR 1,500 + AJD on mortgage EUR 3,150 = EUR 5,050 more
• Grand total with mortgage: ~EUR 30,000 (10%)

Ongoing Annual Costs of Ownership

Owning property in Spain comes with annual obligations:

• IBI (Impuesto sobre Bienes Inmuebles): Annual property tax. Varies by municipality. Typically EUR 400–2,000/year for an apartment, EUR 1,000–4,000+ for a villa.
• Community fees (Comunidad de Propietarios): Monthly charge for shared spaces — pool, gardens, lifts, building insurance. EUR 50–300/month depending on the development.
• Basura (waste collection tax): EUR 50–200/year depending on municipality.
• Home insurance: EUR 200–600/year. Required if you have a mortgage; strongly recommended regardless.
• Non-resident tax: If you don’t live in the property, Spain imputes rental income and taxes you on it — even if it sits empty. Roughly 0.5% of the cadastral value annually for EU residents, higher for non-EU.

Common Mistakes to Avoid

1. Buying without a lawyer. The number one mistake. Estate agents and notaries do not protect your interests. Period.
2. Declaring a lower purchase price. Historically common to reduce tax. Now actively prosecuted. The tax office (Hacienda) has reference values for every property and will investigate if your declared price is significantly below.
3. Ignoring community debts. Outstanding community fees transfer to the new owner. Your lawyer must check. A property with EUR 10,000 in unpaid derramas isn’t a bargain — it’s a trap.
4. Not checking planning permission. Illegal builds are common on the Costa del Sol, especially in rural areas. If the property lacks a licencia de primera ocupación, you may not be able to connect utilities or sell it later.
5. Underestimating total costs. The 7% ITP is just the start. Budget 12-15% total to be safe.
6. Rushing because you’re on holiday. The “we fell in love with it at sunset” purchase is how expensive mistakes happen. Take time. Come back for a second visit. See it in daylight and rain.

Frequently Asked Questions

📖 Related Guides

• Property Purchase Costs and Taxes in Spain
• Finding a Property Lawyer in Spain
• The Spanish Land Registry Explained
• The Conveyancing Process in Spain
• IBI Property Tax
• NIE Guide
• Banking in Spain
• Tax Residency Guide

Last reviewed: February 2026. Tax rates and mortgage conditions change — verify current figures with your lawyer and bank.