The property purchase procedure in Spain step by step
The property purchase procedure in Spain step by step
Buying property in Spain as a foreigner is simple, but it requires a few formalities: an NIE number, a bank account, legal verification and a notarial deed. Here is what the process looks like when buying on the resale market, step by step.
1. NIE number
The NIE is the Spanish tax identification number for foreigners, required before signing any binding contract and visiting the notary. You can obtain it at a Spanish consulate in your country or at a designated police station in Spain; according to legal studies it usually takes 4 to 8 weeks.
2. A bank account in Spain
An account with a Spanish bank is practical for payments, utility bills and taxes. A transfer from a foreign bank is also possible, but an account makes the later upkeep of the property much easier.
3. Reserving the property
After choosing a property, you sign a reservation agreement and pay a small deposit. The property is usually taken off the market for 2–4 weeks, during which the legal verification takes place.
4. Legal verification
The lawyer checks, among other things, the land registry extract (nota simple), mortgage encumbrances, building permits and the habitation certificate, community debts, unpaid IBI tax, compliance with the zoning plan and the energy certificate. Skipping this stage is the biggest risk of the entire purchase. We recommend using an independent lawyer who represents only you. We have built up contacts with Polish-speaking lawyers on every coast.
5. Preliminary agreement (contrato de arras)
The buyer usually pays 10% of the price. If the buyer withdraws from the transaction, the deposit is lost, and if the seller withdraws, the seller must return double the amount.
6. Notarial deed (escritura pública)
The parties sign the deed before a Spanish notary and the buyer pays the rest of the price; on the resale market the buyer also pays ITP tax, and when buying from a developer, VAT and AJD. Payment can be made by transfer from a foreign bank or by bank cheque.
7. Entry in the land registry
Only a notarial deed registered in the Registro de la Propiedad gives full ownership. Registration usually takes 30–60 days.
How long it takes
From an accepted offer to signing at the notary usually takes 6–12 weeks, and including obtaining the NIE number the whole process usually takes 8–16 weeks. Buying with a mortgage or from a developer takes longer, when you have to wait for construction to be completed.
After the purchase
Every year you pay the local IBI tax, and a non-resident files an annual return (Modelo 210); it is worth using a tax representative. We describe the detailed purchase costs in the article How much does it cost to buy property in Spain. See the offers: apartments in Alicante, apartments on the Costa del Sol, apartments in Málaga. Buying through World Residence is commission-free for the buyer; contact us.
Frequently asked questions
Do you need an NIE number to buy property in Spain?
Yes. The NIE is required before signing any binding contract and visiting the notary. Obtaining it usually takes 4 to 8 weeks.
How long does it take to buy property in Spain?
From an accepted offer to signing at the notary usually takes 6–12 weeks, and together with the NIE number the whole process usually takes 8–16 weeks.
How much is the deposit when buying property in Spain?
With the reservation agreement you pay a small amount, and with the preliminary agreement (contrato de arras) usually 10% of the price.
Does World Residence recommend an independent lawyer?
Yes. In every case we recommend using an independent lawyer who looks after your interests only: checks the legal status of the property, verifies documents and contracts, and accompanies you through the formalities up to the signing at the notary. We have built up contacts with Polish-speaking lawyers on every coast, so we will gladly recommend a specialist you can communicate with easily.