How to Buy Property in Spain: Step-by-Step Guide

Spain is one of the most popular destinations for foreign property buyers in Europe. In the first half of 2025, non-residents purchased over 71,000 properties — nearly one in five transactions nationwide. A warm climate, well-developed infrastructure, a transparent property registration system, and no restrictions on foreign ownership make Spain one of the most accessible real estate markets in the EU.

This guide walks you through the entire process: from choosing a region to signing at the notary and registering your ownership. All figures and tax rates are current as of early 2026.

Important: You do not need a visa, residence permit, or any form of residency to buy property in Spain. Any foreigner with a valid passport can become a property owner.

Step 1. Set Your Budget Including All Costs

The listing price is not the final cost. You should budget an additional 10–13% on top for taxes and fees. The exact percentage depends on the region and property type.

Resale property:

In the Valencian Community (Costa Blanca), the ITP rate is currently 10%. From 1 June 2026, it will be reduced to 9% under Law 5/2025. Properties over €1,000,000 are taxed at 11%.

New-build from a developer:

Example: If you buy a €250,000 resale apartment in Alicante province, expect roughly €28,000–€30,000 in additional costs. Total budget needed: approximately €280,000.

Step 2. Choose a Region

Spain offers several main coastal areas popular with foreign buyers:

Costa Blanca (Alicante province) — the most popular coastline among international buyers. Over 300 days of sunshine per year, well-developed infrastructure, Alicante international airport. Wide price range: from €100,000 for apartments in Torrevieja to €2,000,000+ for villas in Jávea or Altea.

Costa del Sol (Málaga province) — a traditional destination for British and Scandinavian buyers. Marbella, Estepona, Fuengirola. Higher price segment overall.

Costa Cálida (Murcia region) — more affordable prices, growing market, golf resorts.

Each region has its own character in terms of pricing, infrastructure, and lifestyle. We recommend visiting and spending at least a week in your chosen area before committing to a purchase.

Step 3. Get Your NIE

The NIE (Número de Identificación de Extranjero) is a foreigner's identification number. You cannot buy property, open a bank account, or set up utilities without it.

How to apply:

Three options:

1. In Spain — at a police station (Oficina de Extranjeros) by appointment.
2. At a Spanish consulate or embassy in your country of residence.
3. Through a representative with a power of attorney (poder notarial) — useful if you cannot travel to Spain in person.

Documents required:

• Completed form EX-15
• Passport + copy
• Proof of reason for application (preliminary contract, letter from agency)
• Paid fee — form 790, code 012 (approximately €12)

Processing time: From one day to several weeks, depending on the city and season. In popular coastal areas during summer, appointments may be booked 3–6 weeks in advance. Start this process early.

Tip: The NIE is simply a tax identification number — not a visa or residence permit. It does not grant the right to live in Spain, but is required for any financial transaction in the country.

Step 4. Open a Spanish Bank Account

A Spanish bank account is needed to pay for the property, taxes, utility bills, and insurance. Some banks allow remote account opening via video identification, but most will require an in-person visit or a power of attorney.

What you will need:

• Passport
• NIE (or proof of application)
• Proof of address in your home country
• Proof of income or bank statement

Main banks working with foreign clients: CaixaBank (HolaBank program for expats), Santander, BBVA, Banco Sabadell. All have English-speaking departments for international clients.

Step 5. Find a Property and Conduct Due Diligence

Once you have found a suitable property, do not rush to pay. Legal due diligence must come first.

What your lawyer checks:

• Nota simple — an extract from the Land Registry confirming ownership, checking for any mortgages, liens, or debts attached to the property.
• Cadastral reference — verifying that the actual boundaries and area match the official records.
• Outstanding debts — utility bills, IBI tax, community fees (comunidad).
• Planning status — legality of construction, compliance with local urban planning, first occupancy license (licencia de primera ocupación).

For new builds, the lawyer additionally verifies the developer's license, bank guarantees on deposited funds, and the ten-year structural warranty insurance (seguro decenal).

Important: In Spain, the buyer pays for their own lawyer — the agency and notary do not replace independent legal advice. Lawyer fees typically range from €1,500 to €3,000 depending on the complexity of the transaction.

Step 6. Reservation and Deposit

The transaction process typically follows two stages:

Reservation (contrato de reserva): A small amount (€3,000–€6,000) that takes the property off the market for 1–2 weeks while documents are prepared. Refund conditions are specified in the contract.

Deposit contract (contrato de arras): The main preliminary agreement. The buyer pays a deposit — usually 10% of the property price. The contract specifies:

• Price and payment terms
• Deadline for notary signing (usually 1–2 months)
• Responsibilities of each party

• If the buyer withdraws — they lose the deposit.
• If the seller withdraws — they must return double the deposit.

Tip: Do not sign the arras contract until your lawyer has completed the property check. The deposit is paid after due diligence, not before.

Step 7. Mortgage (If You Need Financing)

Foreign non-residents can obtain a mortgage from Spanish banks. Conditions as of 2026:

The 12-month Euribor rate as of January 2026 is 2.267%.

Documents needed for application:

• Passport and NIE
• Proof of income for 3–6 months (payslips or tax returns)
• Bank statements for 6–12 months
• Employment contract (employed) or 2 years of tax returns (self-employed)
• Confirmation of no outstanding debts in your country of residence

Banks with programs for foreign buyers: CaixaBank (HolaBank), Santander (Mundo Mortgage), BBVA, Sabadell, Bankinter.

Tip: Apply to 2–3 banks simultaneously. Conditions vary significantly, and a 0.3% difference in the rate saves thousands of euros over the loan term. A mortgage broker can help secure better terms.

Step 8. Notary Signing (Escritura Pública)

This is the day of the transaction. The buyer and seller (or their authorized representatives) meet at the notary's office.

What happens:

1. The notary reads out the deed of sale (escritura de compraventa).
2. The buyer pays the remaining amount (banker's draft or transfer).
3. If there is a mortgage — the bank is present and the loan contract is formalized.
4. Both parties sign.
5. The buyer receives the keys.

Under the 2019 Mortgage Law (Ley 5/2019), the buyer must visit the notary at least one business day before the mortgage signing for a mandatory briefing on the loan terms (acta de transparencia). This is a consumer protection requirement.

Important: The notary signing is not a formality. The notary checks documents but does not represent the buyer's interests. This is why you need your own lawyer.

Step 9. Registration and Post-Purchase Steps

After the notary signing:

1. Land Registry registration — your lawyer or gestoria submits the documents. This typically takes 1–3 months. You are already the legal owner based on the notarial deed.

1. Tax payment — ITP or IVA+AJD must be paid within 30 business days of signing. Late payment results in penalties.

1. Utility transfers — electricity, water, gas, and internet are transferred to the new owner's name.

1. Insurance — home insurance is mandatory with a mortgage and recommended in all cases.

1. IBI and community fees — the annual municipal property tax (IBI) and community of owners fees transfer to the buyer.

1. Non-resident tax obligations — even if you do not live in Spain, you must file an annual declaration via Modelo 210 (imputed income or rental income).

How Long Does the Entire Process Take

On average, from first visit to receiving the keys takes 2–3 months. With a cash purchase (no mortgage), it can be faster: 4–6 weeks.