10 important steps before buying property in Spain

Buying property in Spain is one of the most rewarding decisions an international buyer can make — but it is also one that comes with significant legal and financial complexity. Spain’s property market operates under rules that differ substantially from those in the UK, Germany, the Netherlands and the US. Mistakes made early in the process — signing the wrong contract, missing a debt on the property, skipping due diligence — can be extremely costly to undo.

This guide covers every stage of the purchase process, from your first search to picking up the keys. It is written for international buyers who want to understand exactly what they are committing to before they sign anything.

If you already know what you are looking for, use our directory to find an English-speaking property lawyer in your chosen region.

Step 1: Get Your NIE Number

Before you can buy property in Spain, you need a NIE — Número de Identificación de Extranjero. This is your Spanish tax identification number and it is required for every stage of the purchase process: signing contracts, paying taxes, opening a bank account, and registering the property in your name.

You can apply for a NIE at a Spanish consulate in your home country or at a police station in Spain. The process typically takes between two and six weeks. Many buyers underestimate this timeline and find it delays their purchase. Your lawyer can apply for the NIE on your behalf using a power of attorney, which avoids the need for you to be present in Spain.

Step 2: Open a Spanish Bank Account

A Spanish bank account is not strictly required by law, but in practice it is essential. You will need it to pay purchase taxes, utility deposits, community fees and — if applicable — mortgage repayments. Most sellers and notaries also expect payment to be made via a Spanish bank transfer or certified cheque from a Spanish bank.

Major banks including Santander, BBVA and CaixaBank all offer accounts for non-residents. The process requires your passport, NIE, and proof of address. Some banks offer dedicated international buyer services with English-speaking advisors.

Step 3: Appoint a Property Lawyer Before You Sign Anything

This is the most important step in the entire process, and the one most commonly skipped or delayed. In Spain, unlike in the UK or Germany, there is no automatic legal protection for buyers who sign documents without independent legal advice. The notary who completes the transaction is impartial — they are not your lawyer and do not act in your interests.

Your lawyer should be appointed before you sign any reservation contract, pay any deposit, or agree any terms with a seller or developer. Once you have signed a document and handed over money, your legal position changes significantly.

A qualified property lawyer in Spain will:

• Carry out full due diligence on the property — checking ownership, debts, mortgages, planning status, and legal build compliance
• Review and negotiate the reservation contract and arras contract before you sign
• Apply for your NIE if required
• Coordinate with the notary and Land Registry
• Calculate and pay all purchase taxes on your behalf
• Register the property in your name

Find a vetted, English-speaking lawyer in your area: Marbella, Mallorca, Ibiza, Barcelona or Madrid.

Step 4: The Reservation Contract

Once you have agreed a price with the seller, the first document you will be asked to sign is a reservation contract — known in Spanish as a contrato de reserva or documento de señal. This commits both parties to the transaction and typically requires a deposit of between €3,000 and €10,000, depending on the property price.

The reservation contract removes the property from the market for an agreed period — usually two to four weeks — while your lawyer completes due diligence. It is not a minor document. If you sign it without legal advice and problems are later discovered with the property, recovering your deposit can be difficult.

Your lawyer must review the reservation contract before you sign. Key points to check include what happens to your deposit if due diligence reveals a problem, the deadline for signing the arras contract, and whether all agreed conditions are correctly reflected.

Step 5: Due Diligence

Due diligence is the legal investigation your lawyer carries out on the property before you commit to purchasing it. This is not a formality — it is the stage at which problems are discovered and, if necessary, the purchase is renegotiated or abandoned.

A thorough due diligence investigation includes:

• Land Registry check — confirms who legally owns the property and whether there are any mortgages, debts, liens or charges registered against it
• Cadastral check — confirms the official size, boundaries and classification of the property
• Planning status — verifies that the property was built with the correct licences and that there are no outstanding violations or demolition orders
• Community fees — confirms that all fees owed to the community of owners are up to date, since unpaid debts can transfer to the new owner
• IBI (local property tax) — confirms there are no outstanding annual property tax payments
• Utility connections — verifies that water, electricity and sewage are properly connected and regularised
• Energy certificate — the seller is legally required to provide this before completion

In coastal and rural areas of Spain, planning compliance is a particularly important issue. Properties built without the correct licences, or in areas later reclassified as non-buildable land, can create serious legal and financial problems for buyers. This is especially relevant in parts of Andalusia, Murcia and Valencia.

Step 6: The Arras Contract

Once due diligence is complete and both parties are satisfied, the next step is the arras contract — the main private purchase agreement. This is a legally binding document that sets out the full terms of the sale: price, completion date, what is included, and the conditions under which either party may withdraw.

The most common form is the arras penitenciales (Article 1454 of the Spanish Civil Code). Under this arrangement, if the buyer withdraws from the purchase without legal justification, they forfeit their deposit. If the seller withdraws, they must return the deposit doubled. The deposit at this stage is typically 10% of the purchase price.

Your lawyer must draft or review this contract carefully. The terms must accurately reflect everything that has been agreed, including fixtures and fittings, any repairs the seller has committed to, and the precise completion date.

Step 7: Arranging a Mortgage (if required)

Spanish banks actively lend to non-resident foreign buyers, though the conditions differ from those for residents. Non-residents are typically limited to borrowing 60–70% of the property’s assessed value, compared to up to 80% for residents. This means you will need a minimum deposit of 30–40% of the purchase price — plus additional funds to cover taxes and legal costs.

In 2026, the mortgage environment in Spain remains relatively favourable. Euribor has stabilised at around 2.15–2.30%, significantly below the highs of over 4% seen in 2023. Fixed-rate mortgages for non-residents are available from around 2.8–3.5% depending on the lender and your financial profile.

Major Spanish banks including Santander, BBVA and CaixaBank all offer dedicated non-resident mortgage products. Using an independent mortgage broker can help you access better terms than going directly to a single bank. Your lawyer can recommend trusted mortgage advisors who work with international buyers.

Important: the bank will commission an official valuation of the property before approving the mortgage. If the valuation comes in below the purchase price, the bank will lend against the valuation figure — not the agreed price — which means you will need additional funds from your own resources.

Step 8: Signing at the Notary

The final stage of the purchase is the signing of the escritura pública — the public deed of sale — in front of a Spanish notary. Both buyer and seller (or their representatives via power of attorney) must be present, along with the bank if there is a mortgage.

At this point, the remaining purchase price is paid — typically by certified bank cheque — and the keys are handed over. The notary reads the deed in full, which in Spain is a legal requirement. If you do not speak Spanish, your lawyer provides real-time translation and explanation.

The buyer has the right to choose the notary. All notaries charge the same regulated fees, so the choice is largely a matter of convenience and language — some notaries in tourist areas have English-speaking staff.

Step 9: Taxes and Costs

The total additional costs of buying property in Spain — taxes, notary, Land Registry and legal fees — typically amount to between 10% and 13% of the purchase price for resale properties, and between 12% and 15% for new builds. These must be budgeted for in addition to the purchase price.

The main taxes and costs are:

• Transfer Tax (ITP) — applies to resale properties. The rate varies by region: it is 8–10% in Andalusia, 8% in the Balearic Islands (rising to 11% above €1 million), and 10% in Catalonia and Madrid. This is the single largest purchase cost for most buyers.
• VAT (IVA) and Stamp Duty (AJD) — applies to new build properties from developers. VAT is 10% (or 21% for land and commercial property), plus AJD of 0.5–1.5% depending on the region.
• Notary fees — regulated by law and based on the purchase price. Typically €600–€1,200 for a standard residential purchase.
• Land Registry fees — also regulated and based on the purchase price. Typically €400–€800.
• Legal fees — most property lawyers in Spain charge between 1% and 1.5% of the purchase price, with a minimum fee. All lawyers listed in our directory work on a transparent fixed fee basis.
• Plusvalía (Municipal Capital Gains Tax) — this is a tax on the increase in the cadastral value of the land and is paid by the seller. However, it is important to confirm this in the contract.

Step 10: Registering the Property

After completion at the notary, your lawyer submits the deed to the Land Registry to register the property in your name. This typically takes between four and eight weeks. Until registration is complete, you are the legal owner of the property but the change is not yet publicly recorded.

Your lawyer will also handle the transfer of utility contracts — electricity, water, gas — into your name, and set up direct debits for IBI (annual local property tax) and community fees if applicable.

Ongoing Obligations as a Non-Resident Property Owner

Owning property in Spain as a non-resident comes with ongoing tax obligations that many buyers are not aware of.

Non-Resident Income Tax (IRNR / Modelo 210): Even if you do not rent out your property, non-residents are required to file an annual tax return in Spain. The tax is based on a deemed income calculated from the cadastral value of the property — typically a modest amount, but a legal obligation nonetheless. If you do rent out the property, all rental income must be declared quarterly.

Wealth Tax: Spain imposes a wealth tax on the value of assets held in the country above a certain threshold. The thresholds and rates vary by autonomous community.

IBI: The annual local property tax, equivalent to council tax in the UK. This is paid to the local municipality and is based on the cadastral value of the property.

Our network includes experienced tax advisors in Spain who specialise in non-resident property owners and can ensure you meet all your obligations efficiently.

Buying Off-Plan in Spain

Purchasing a new development — known as compra sobre plano or off-plan — carries specific legal risks that differ from buying a resale property. The key protections your lawyer must verify include:

• The developer holds a valid building licence (licencia de obras) for the project
• All stage payments you make during construction are protected by a bank guarantee (aval bancario) — legally required since the Housing Law of 2023
• The developer has a proven track record and the financial stability to complete the project
• The purchase contract includes appropriate protections in the event of delays or non-completion
• The property will be delivered with a first occupancy licence (licencia de primera ocupación)

Off-plan purchases can offer attractive pricing and the ability to customise the property, but they require particularly careful legal oversight. Never pay a stage payment on an off-plan purchase without a lawyer confirming that the bank guarantee is in place.

Buying Through a Power of Attorney

Many international buyers complete their Spanish property purchase entirely remotely, without being present in Spain for the signing. This is fully legal and increasingly common. Your lawyer can act as your representative under a power of attorney (poder notarial), handling every stage of the transaction on your behalf — from due diligence and contract review to signing at the notary and registering the property.

The power of attorney must be signed before a notary — either in Spain or at a Spanish consulate in your home country — and apostilled if signed outside Spain.

How to Choose the Right Property Lawyer

Not all lawyers who offer property services in Spain are equal. For an international buyer, the key criteria are:

• Independence: Your lawyer must be independent of the seller, developer, estate agent and mortgage broker. A conflict of interest — even an indirect one — compromises the advice you receive.
• Specialisation: Property law in Spain requires specific expertise. A generalist lawyer or one whose primary area is immigration or family law is not the right choice for a property transaction.
• Language: Your lawyer must be fully fluent in English (or your language) and Spanish. Partial fluency leads to misunderstandings at critical moments.
• Local knowledge: Planning regulations, tax rates and market practices vary significantly between regions. A lawyer based in or specialising in your chosen area will provide better, more precise advice.
• Transparency on fees: A good property lawyer will give you a clear, written fee quote before you engage them. Avoid any firm that is vague about costs.

All lawyers in the Property Lawyers directory are vetted for their experience with international buyers and their ability to advise in English. Use our directory to find a specialist in your region:

• Property lawyers in Marbella and the Costa del Sol
• Property lawyers in Mallorca
• Property lawyers in Ibiza
• Property lawyers in Menorca
• Property lawyers in Barcelona
• Property lawyers in Madrid
• Property lawyers in Málaga

Frequently Asked Questions

How much does a property lawyer cost in Spain?

Most property lawyers in Spain charge between 1% and 1.5% of the purchase price, with a minimum fee that varies by firm. All lawyers listed on Property Lawyers work on a transparent fixed fee basis — no hidden costs.

Can I buy property in Spain without speaking Spanish?

Yes. All lawyers in our network are fully English-speaking and experienced working with international buyers from the UK, Germany, the Netherlands, Scandinavia and beyond. They handle all communication with notaries, the Land Registry and local authorities on your behalf.

Do I need to be in Spain to buy a property?

No. With a power of attorney, your lawyer can represent you at every stage of the transaction, including signing at the notary. Many international buyers complete their purchase entirely remotely.

How long does buying a property in Spain take?

From offer accepted to completion, the process typically takes between six and twelve weeks. Your lawyer manages the timeline, coordinates with the notary and ensures all legal requirements are met before the signing date.

What are the risks of buying property in Spain?

The most common risks — undeclared debts on the property, illegal builds, planning violations, unpaid community fees — are all avoidable with proper due diligence. That is exactly what a qualified property lawyer is there to do. Never sign a contract or pay a deposit without independent legal advice in place.

Can non-EU buyers purchase property in Spain in 2026?

Yes. Despite political discussion in early 2025 about restricting non-EU buyers, no such law has been passed. Buyers from the UK, USA, Canada, Australia and other non-EU countries can purchase property in Spain freely in 2026. The proposed 100% purchase tax on non-EU non-resident buyers has not been enacted.