What Does the Property Buying Process in Spain Look Like? Basic Information
As a member of the European Union, Spain offers a secure and transparent system for property transfer, accessible to both local and foreign buyers. Despite clear procedures, the purchase process requires appropriate experience and knowledge of local regulations. Therefore, working with professionals, such as real estate agents and lawyers, is crucial for a smooth transaction and for the keys to your dream home to be handed over on schedule.
Our agency’s experienced advisors, together with lawyers, will assist you at every stage of the purchase: from selecting the property to signing contracts, opening a bank account, signing the notarial deed, handing over the keys, transferring utilities… and many other aspects of moving to Spain.
Regarding the purchase process itself… I usually send offers for various properties to investors a few days before their arrival, according to their guidelines. Before their visit, I arrange viewings of selected apartments, houses, or developer sales offices/construction sites.
To ensure clients’ legal security, I always cooperate with a law firm that provides services in Polish. Before your arrival, I first arrange a phone call with a representative of the law firm so they can explain how the legal service will proceed. At this stage, the scope of necessary documents is determined, and a notarial power of attorney (for the law firm) is granted, enabling lawyers and legal assistants to handle formalities, including obtaining an NIE number, opening a bank account, potentially processing a mortgage, verifying the legal status of the property or developer, and analyzing contracts.
I cooperate with the law firm Fuster&Associates, which has been in operation for 25 years.
After selecting a property, we agree with the seller (for resale properties) on the reservation amount, usually 3,000–6,000 EUR, the deadline for the deposit agreement, and the preliminary notarial deed. The reservation agreement is prepared by a lawyer, and the money is transferred to the buyer’s lawyers’ account. If, after document analysis, it turns out that everything is in order with the property, a deposit agreement (usually 10% of the property’s value) is signed. The entire process from viewings to the notarial deed can take up to 90 days; if more time is needed, it is often not a problem. After leaving the notarial authorizations, the buyer does not need to be present in Spain for the signing of the deed.
When purchasing a new-build property, the reservation fee is usually from €3,000, depending on the property’s value and the construction stage. Each developer has its own rules regarding subsequent payments.
From the moment the reservation agreement is signed, for approximately one month, the developer verifies the origin of the funds intended for the apartment purchase, ensuring all funds are documented. After this period, the purchase and sale agreement is signed, and typically 10% to 20% of the property’s value must be paid. Subsequent payments also depend on the developer; sometimes it’s, for example, 10% in installments over a year, sometimes 20% immediately. The remaining amount is paid upon signing the notarial deed.
All prices are net and do not include legal, notarial fees, or taxes
For resale properties…
10% tax (ITP, property transfer tax)
approximately 1% legal office fee
0.5% notarial fees
For new-build properties, the following should be added to the price:
10% VAT payable to the developer
1.5% of the gross price, tax (Actos Jurídicos Documentados) on legal acts documentation
The law firms I cooperate with provide services in Polish, assistance during the notarial deed, and opening a bank account in Spain – Sabadell/Bankinter – 1% (negotiable; if you purchase a new-build property with me, you initially receive a 10% discount, and I cover the cost of obtaining two NIE numbers).
When purchasing a new-build property, the notary is chosen by the developer, and the cost is approximately 0.5%.
The total fees, including taxes (without a mortgage), are approximately 13%
The process of buying property in Spain can be divided into 7 key stages, which are described in detail below:
1. Requirements
The first step is to define your requirements and preferences, such as location, size of the house or apartment, number of bedrooms and bathrooms, amenities within the development, and budget. Creating such a list allows us to find the best offers that meet your needs.
2. Property Viewings
Presentations of selected properties. If a personal visit is difficult, you can use video conferencing (applies to new-build properties), allowing you to view properties or even projects online via video calls.
3. Property Reservation
Once you decide on a specific property, the next step is to reserve it. At this point, the property is withdrawn from the market. For new properties, prices are usually fixed, while for resale properties, price negotiation is possible.
4. Signing the Reservation Agreement
After agreeing on terms with the seller, a reservation agreement is signed, and the buyer pays a deposit of 3-15 thousand euros (sometimes even 10% of the property’s value). This agreement provides time to complete all necessary legal procedures before finalizing the purchase. I always cooperate with a law firm; the money does not go to the seller’s account but to the law firm’s account (in the case of new-build properties, to the developer’s account, and the developer MUST always provide bank guarantees).
For resale properties, the lawyer prepares a preliminary contract (Arras Contrat); for new-build properties, they approve the purchase and sale agreement between the buyer and the developer (between the reservation agreement and the purchase and sale contract, the developer ALWAYS checks the origin of the funds for the property purchase). At this stage, payments are made for second-hand properties, usually 10%, while for new-build properties, depending on the developer, 20-40% of the property’s value.
If this process is not clear to you, I will explain everything by phone or email.
5. Obtaining an NIE Number
The NIE number (Número de Identificación de Extranjero) is essential for purchasing property in Spain. It is a unique identification number for foreigners, required for legal and financial transactions. The lawyer handles its acquisition on behalf of the buyer.
6. Opening a Bank Account
The next step is to open a Spanish bank account, which allows you to manage payments, including notarial fees and other costs associated with the purchase. Together with our lawyers, we support clients throughout the entire process.
7. Notarial Deed
The final stage is the signing of the title deed before a notary. The notary explains all terms of the agreement and ensures that both the buyer and seller agree to its conditions.
Documents Required for Property Purchase in Spain
The following documents are required to finalize the transaction:
- Valid identification document
- NIE number
- Power of attorney (if the transaction is conducted by a representative)
- Sales agreement
- Statement of no mortgage encumbrances on the property.
- Confirmation of payment of community fees and IBI tax
The property purchase process in Spain is transparent and secure, especially if you work with professionals who will provide support at every stage of the transaction.
