Buying Guide

Purchasing a property in Spain is an exciting journey, whether you are searching for a permanent residence, a holiday home, or an investment opportunity. The process is secure and well-regulated, but it involves several important legal, financial, and administrative stages that should be managed with the support of experienced professionals.

01 · Budget

Defining Your Budget & Financing

The first step in purchasing property in Spain is establishing a clear budget and financing strategy. Buyers should consider not only the purchase price itself, but also the additional taxes and acquisition costs associated with the transaction. Spanish banks generally finance:

• Up to 60–70% for non-residents
• Up to 80% for residents

02 · Timing

Mortgage Approval Timeline

Mortgage approvals usually take between three and six weeks and require documentation such as proof of income, tax returns, bank statements, and identification.

03 · Advisory

Working With A Real Estate Advisor

A professional real estate advisor plays a central role throughout the buying process. Their responsibility is to identify suitable properties, arrange viewings, negotiate the best possible terms, and coordinate communication between all parties involved. In most cases, estate agency fees in Spain are paid by the seller and are already included within the property's asking price.

04 · Legal

Appointing An Independent Lawyer

One of the most important steps is appointing an independent property lawyer who represents exclusively the buyer's interests. The lawyer conducts full legal due diligence on the property, including:

• Verifying ownership
• Reviewing Land Registry records
• Confirming there are no debts or legal charges
• Checking planning permissions and licenses
• Reviewing contracts and legal documentation

05 · Costs

Legal Fees

Legal fees are typically around 1% to 1.5% of the purchase price plus VAT.

06 · Documentation

Obtaining An NIE Number

All foreign buyers in Spain are required to obtain an NIE number (Número de Identificación de Extranjero), which is necessary for:

• Purchasing property
• Paying taxes
• Opening a Spanish bank account
• Completing the title deed

07 · Banking

Opening A Spanish Bank Account

At the same time, buyers generally open a Spanish bank account to facilitate payments related to the purchase, utilities, taxes, and mortgage instalments.

08 · Reservation

Property Search & Reservation Agreement

Once a suitable property has been selected and an offer accepted, a reservation agreement is signed. This agreement removes the property from the market while legal checks are carried out. A reservation deposit is usually paid at this stage, typically ranging between €3,000 and €10,000. Before signing any reservation documentation, buyers are strongly advised to have the contract reviewed by their lawyer.

09 · Due Diligence

Legal Due Diligence

Following the reservation stage, the buyer's lawyer conducts comprehensive legal checks on the property. This process includes verifying:

• Ownership rights
• Existing mortgages or debts
• Community fees
• Utility payments
• Building legality
• Planning permissions
• Tourist rental licenses where applicable

10 · Contract

Private Purchase Contract (Contrato de Arras)

Once the legal checks have been completed successfully, both parties sign the private purchase contract, commonly known as the ‘Contrato de Arras’. At this point, the buyer typically pays 10% of the purchase price. This agreement is legally binding:

• If the buyer withdraws, the deposit is usually forfeited
• If the seller withdraws, they must generally repay double the deposit

11 · Financing

Mortgage Approval & Property Valuation

For financed purchases, the bank proceeds with the official property valuation and final mortgage approval. The valuation confirms the market value of the property and is required before the mortgage can be formally issued. This process generally takes between two and four weeks.

12 · Completion

Completion Before The Notary

Completion takes place at the notary office, where the public deed of sale (Escritura) is formally signed. The notary:

• Verifies the identities of both parties
• Confirms the legality of the transaction
• Officially authorizes the transfer of ownership

13 · Completion Day

Payment & Keys

On completion day, the buyer pays the remaining purchase balance, applicable taxes, and legal and administrative fees. Once signed, the buyer receives the keys and officially becomes the new owner of the property.

14 · Taxes

Taxes & Purchase Costs

In addition to the purchase price, buyers should budget approximately 10–15% in additional acquisition costs. These may include:

• Property Transfer Tax (ITP)
• VAT on new-build properties
• Legal fees
• Notary fees
• Land Registry fees
• Mortgage valuation costs
• Technical surveys

15 · Andalusia

Transfer Tax In Andalusia

In Andalusia, the transfer tax for resale properties is currently generally 7%.

16 · Timeline

Typical Timeline

The Spanish property purchase process is relatively efficient when managed correctly. Typical timelines are:

• Cash purchases: approximately 1–2 months
• Mortgage purchases: approximately 2–4 months

A Secure & Transparent Process

With the right professional guidance, purchasing a property in Spain is a secure and transparent experience. Careful legal oversight, financial planning, and expert representation ensure buyers can proceed with confidence while enjoying the exceptional lifestyle and investment opportunities Spain has to offer.

01 · Budget

Defining Your Budget

The first step when purchasing property in Spain is establishing a clear acquisition budget. Buyers should consider not only the purchase price itself, but also the additional taxes and acquisition costs associated with the transaction. In addition to the property value, buyers should generally allow approximately 10–15% in additional costs, which may include:

• Property transfer taxes
• Legal fees
• Notary fees
• Land Registry fees
• Technical surveys
• Administrative expenses

02 · Advisory

Working With A Real Estate Advisor

A professional real estate advisor plays a key role throughout the purchasing process. Their responsibility is to identify suitable opportunities, organize private viewings, negotiate purchase terms, and coordinate communication between all parties involved. In Spain, estate agency fees are generally paid by the seller and are typically already included within the asking price of the property.

03 · Legal

Appointing An Independent Property Lawyer

One of the most important stages of the transaction is appointing an independent property lawyer who acts exclusively on behalf of the buyer. The lawyer conducts comprehensive legal due diligence on the property, including:

• Verification of ownership
• Reviewing Land Registry documentation
• Confirming there are no debts or legal charges attached to the property
• Checking planning permissions and building legality
• Reviewing contracts and legal documentation
• Confirming community fees and local taxes are up to date

04 · Costs

Legal Fees

Legal fees are typically around 1% to 1.5% of the purchase price plus VAT.

05 · Documentation

Obtaining An NIE Number & Opening A Spanish Bank Account

All foreign buyers purchasing property in Spain must obtain an NIE number (Número de Identificación de Extranjero). This identification number is required for:

• Purchasing property
• Paying taxes
• Signing the title deed
• Registering utilities
• Opening a Spanish bank account

06 · Reservation

Property Search & Reservation Agreement

Once a suitable property has been selected and an offer accepted, a reservation agreement is typically signed to remove the property from the market while legal checks are carried out. At this stage, the buyer normally pays a reservation deposit, commonly between €3,000 and €10,000.

07 · Due Diligence

Legal Due Diligence

Following the reservation stage, the lawyer conducts full legal due diligence on the property. This process includes verifying:

• Ownership rights
• Existing debts or mortgages
• Community charges
• Utility payments
• Building legality
• Planning permissions
• Tourist rental licenses where applicable

08 · Contract

Private Purchase Contract (Contrato de Arras)

After three weeks, once all legal checks have been successfully completed, both parties sign the private purchase contract, commonly referred to as the ‘Contrato de Arras’. At this point, the buyer usually pays 10% of the purchase price.

09 · Completion

Completion Before The Notary

The final stage of the transaction takes place before a Spanish notary, where the public title deed (Escritura) is formally signed. On completion day, the buyer pays the remaining purchase balance, applicable taxes, and legal and administrative costs.

10 · Taxes

Taxes & Purchase Costs

In addition to the purchase price, buyers should budget for the following acquisition costs. For resale properties, Property Transfer Tax (ITP) is typically between 6%–10%, depending on the region — in Andalusia, the current transfer tax for resale properties is generally 7%. For new-build properties, VAT (IVA) is 10% and Stamp Duty (AJD) is approximately 1%–1.5%. Additional costs may include:

• Legal fees
• Notary fees
• Land Registry fees
• Technical surveys

11 · Timeline

Typical Timeline

For cash buyers, the purchasing process in Spain is typically efficient and straightforward. Estimated timelines:

• Reservation agreement: within a few days of offer acceptance
• Legal due diligence: approximately 1–3 weeks
• Completion before the notary: generally within 4–8 weeks

A Secure & Seamless Purchase Experience

With the right professional guidance, purchasing property in Spain is a secure and transparent process. By working with an experienced real estate advisor and an independent lawyer, buyers can move through each stage with confidence while enjoying the lifestyle, investment potential, and exceptional quality of life that Spain has to offer.