Initial Steps
Before beginning your Spanish property journey, you'll need to obtain an NIE number (Número de Identidad de Extranjero) - your tax identification number in Spain. This is essential for any property transaction and can be obtained from Spanish consulates or police stations.
Finding Your Property
The Spanish property market offers various options, from urban apartments to rural fincas. Work with a reputable real estate agent (inmobiliaria) who speaks your language and knows the local market. Be aware that different regions have distinct property characteristics and price ranges.
The Buying Process
1. Making an Offer
Once you've found your ideal property, make an offer through your agent. If accepted, you'll typically sign a reservation agreement (contrato de reserva) and pay a reservation deposit (usually €3,000-6,000).
2. Legal Checks
Hire an independent lawyer to perform due diligence, including:
- Verifying the property's registration in the Land Registry (Registro de la Propiedad)
- Checking for debts or charges on the property
- Ensuring all building works are properly licensed
- Verifying the seller's ownership rights
3. Private Purchase Contract
Sign the private purchase contract (contrato privado de compraventa) and pay a deposit (usually 10% of the purchase price). This contract outlines the terms of sale, completion date, and inventory of contents included.
Associated Costs
Budget for additional expenses beyond the purchase price:
- Property Transfer Tax (ITP): 6-10% depending on the region
- Notary fees: 0.5-1% of the purchase price
- Land Registry fees: 0.4-0.7%
- Legal fees: 1-2%
- VAT (IVA) of 10% on new properties
Final Steps
1. Escritura
The sale is completed before a notary with the signing of the escritura (deed of sale). Full payment is made at this point, and you receive the keys.
2. Post-Purchase
After completion:
- Register the property in your name at the Land Registry
- Transfer utilities into your name
- Set up Spanish bank accounts for bills
- Consider making a Spanish will for your new property
Important Considerations
- Always use independent legal representation
- Never sign documents you don't fully understand
- Keep funds for ongoing costs like community fees and local property taxes
- Consider exchange rate fluctuations if buying in a different currency
- Research mortgage options if needed, as terms may differ from your home country
Following these steps and working with qualified professionals will help ensure a smooth property purchase in Spain.