House buying in Spain: the step-by-step guide to buying property for foreigners

How to buy a house in Spain: the steps

House buying in Spain follows the same route whether you buy a house in Spain on the coast or are buying an apartment in Spain in a city. Here is how to purchase a property in Spain in order.

1. Set your budget, including costs

Work out what you can spend after purchase costs. On a resale, the regional transfer tax alone is 7–10% of the price in the main coastal regions, and notary, land registry, lawyer and bank costs come on top. Our cost of buying property in Spain guide works through a €250,000 example region by region.

If you need a mortgage, get an agreement in principle from a Spanish lender first. Non-residents are usually offered a lower loan-to-value than residents. See our Spanish mortgage guide.

2. Get your NIE

The NIE (Número de Identidad de Extranjero) is your Spanish tax number. You need it to sign the deed, pay the taxes, open most bank accounts and set up utilities. You can apply at a Spanish consulate before you travel, at a police station in Spain, or through a representative with a power of attorney. Appointments can take weeks, so start early. Read our NIE number guide.

3. Open a Spanish bank account

You will pay the deposit, taxes and future bills (IBI, community fees, utilities) from a Spanish account. Banks will want your passport, NIE and proof of income or address. Many buyers also use a currency transfer provider to move the funds; keep records showing where the money came from, as the notary and bank will ask.

4. Hire your own lawyer

Use an independent lawyer (abogado) who works for you, not the agent's or the developer's. Check they are registered (colegiado) with the local Colegio de Abogados and agree the fee in writing before they start. Our property lawyer guide explains what to ask. If you can't be in Spain to sign, your lawyer can act under a power of attorney.

5. Check the property before you pay anything

These checks are what protect you. Your lawyer should do all of them before you sign the arras contract:

• Nota simple from the Land Registry: confirms the owner, the description, and any mortgages, charges or embargoes. See how to read a nota simple.
• Catastro record: the referencia catastral, the official plot and built area, and the cadastral value. Differences between the Registry, the Catastro and reality are common and should be resolved before completion.
• Planning and licences: check with the town hall that the building and any extensions, pools or conversions are legal, and that there is a first occupation licence or equivalent where required. Rural (rústico) land needs extra care.
• Community debts: a certificate from the community of owners showing the seller is up to date with fees.
• IBI: the last IBI receipt and confirmation there are no arrears. Unpaid IBI can follow the property.
• Utilities: recent bills showing no debts.
• Occupancy: that the property will be handed over empty. If it is let or occupied, your lawyer should address that in the contract. See our guide to okupas.

You can start with our property check: enter the address or referencia catastral and we'll get back to you by email.

6. Reservation

Agents often ask for a reservation fee (commonly a few thousand euros) to take the property off the market. Before paying, make sure the reservation document says in whose account the money is held and that it is refundable if the legal checks find a problem.

7. The arras contract and deposit

The private purchase contract is usually a contrato de arras, with a deposit that is commonly 10% of the price. It sets the price, the completion date, who pays which costs and the condition of the property. There are three types of arras:

• Penitential arras (arras penitenciales): the most common in Spanish property sales. Under article 1454 of the Civil Code, either side can withdraw: if you pull out you lose the deposit; if the seller pulls out they must return it doubled. Courts only apply this if the contract says so clearly.
• Confirmatory arras: the deposit is a part payment, and the party who is let down can demand completion or claim damages.
• Penal arras: the deposit acts as a penalty for breach, but the contract must still be completed.

8. Mortgage (if you need one)

The bank will commission an official valuation (tasación). Under the mortgage credit law (Ley 5/2019), you must receive the loan documents at least ten calendar days before signing and visit the notary for a free explanation of the terms. Build this into your timeline.

9. Completion at the notary

You and the seller (or your representatives) sign the public deed of sale (escritura de compraventa) in front of a Spanish notary. You pay the balance, usually by bank cheque or transfer, and receive the keys. If the seller is not tax resident in Spain, you must withhold 3% of the price and pay it to the Tax Agency on form 211 within one month.

10. Pay the taxes and register the deed

You then pay the purchase tax to the regional tax agency, usually within 30 working days: ITP on resales, or AJD on new builds (the IVA is paid to the developer). Rates are covered in our property taxes guide. Your lawyer or a gestoría then files the deed at the Land Registry. Registration is what protects your ownership against third parties, so don't skip it.

11. After you buy

• Transfer electricity, water, gas and internet into your name, and set up direct debits.
• Register with the town hall (empadronamiento) if you will live there; some councils also use it for local services.
• Diarise IBI and community fees.
• If you are not resident in Spain, you owe non-resident income tax every year on the property, even if you don't let it out, and on any rental income.

Note for UK buyers after Brexit

UK nationals are now non-EU citizens in Spain. Without a visa or residence permit you can stay up to 90 days in any 180-day period across the Schengen area, and owning a home does not change that. Non-EU residents also pay non-resident income tax at 24% on rental income, where EU/EEA residents can pay 19% and deduct expenses.

In January 2025 the Spanish government announced a tax of up to 100% of the property value on purchases by non-EU non-residents. A bill was registered in Congress in May 2025, but as of September 2026 it has not been approved and is not law. Treat it as a proposal and check the current position with your lawyer before you commit.