Quick Overview
Buying property in Spain requires a NIE (foreigner ID number) and budgeting 10-15% above the purchase price for taxes and fees. Resale properties incur Transfer Tax (ITP) at 6-11% depending on region, while new builds have 10% VAT plus 1.5% Stamp Duty (AJD). The process involves signing a private contract (contrato de arras) with a 10% deposit, followed by the public deed (escritura) at a notary, then registering at the Registro de la Propiedad. Spanish banks offer mortgages at 70-80% loan-to-value for residents and 60-70% for non-residents. Total costs including lawyer (€1,000-3,000), notary (€600-1,500), and registry (€400-800) typically add €8,000-15,000 on a €200,000 property.
Key Facts
Additional costs
10-15% of purchase price (taxes, notary, lawyer, registry)
Timeline
2-4 months from offer to completion
Taxes (resale)
6-11% Transfer Tax (ITP) - varies by region
Taxes (new build)
10% VAT + 1.5% Stamp Duty (AJD)
Required professionals
Independent lawyer (mandatory), notary (mandatory)
Mortgage LTV
70-80% for residents / 60-70% for non-residents
How It Works
Buying Property as a Foreigner in Spain
The Spanish property purchase process is highly regulated through notaries and the Property Registry (Registro de la Propiedad). Non-EU buyers must first obtain a NIE (Número de Identificación de Extranjero) foreigner ID number. After finding a property, you request a Nota Simple from the property registry confirming ownership and checking for mortgages or embargoes. Upon agreement, you sign a private purchase contract (contrato de arras) with typically 10% deposit, legally binding both parties. Your independent lawyer conducts due diligence, verifying planning permissions, community debts, and legal status. Banks offer mortgages at 70-80% loan-to-value for Spanish residents, reducing to 60-70% for non-residents, with approval taking 3-6 weeks. The final sale occurs at a notary where you sign the escritura (public deed), pay the balance plus taxes, and receive the keys. The lawyer then registers the deed at the Registro de la Propiedad, legally transferring ownership. Spain's unique features include mandatory notarial involvement for all property transactions, the Nota Simple system providing transparent ownership records, regional variation in Transfer Tax (ITP) from 6% in Madrid to 11% in Catalonia, and the requirement for an independent lawyer to protect buyer interests.
Before you start property hunting
Obtain NIE (if non-resident)
Foreigner ID number required for any property purchase.
Calculate total budget including costs
Property price + 10-15% for taxes and fees.
Get mortgage pre-approval
Know how much banks will lend you.
Hire an independent lawyer
Legal representation to protect your interests.
Property search and initial commitment
Search for properties
Use portals, agents, and visit in person.
Request Nota Simple for properties
Official property registry document showing ownership and charges.
Pay reservation deposit (señal)
Small deposit to take property off market.
Legal commitment before completion
Sign arras contract and pay deposit
Private purchase contract with 10% deposit.
Finalize mortgage approval
Get formal mortgage offer (FEIN).
Get property survey/inspection
Professional inspection of property condition.
Final purchase at notary
Sign deed at notary (Escritura)
Official purchase deed signed by all parties.
Pay property transfer taxes
ITP (resale) or IVA/AJD (new build).
Register property in your name
Update Property Registry with new owner.
Setup and administration
Transfer utilities to your name
Electricity, water, gas contracts.
Set up IBI (property tax) payment
Annual property tax direct debit.
Register with community of owners
For apartments - join the community.
Get home insurance
Buildings and contents insurance.
Register residence (empadronamiento)
Town hall registration at new address.
Buying Property as a Foreigner Costs in Spain (2025)
Foreigner ID number, mandatory for property purchase
Per property, verify ownership and charges
Due diligence, contract review, completion
Madrid 6%, Valencia 10%, Catalonia 11%
For new construction properties
Applies to new builds only
Fixed by law, scales with property value
Official registration of ownership
Bank setup fee if financing
Separate notary for mortgage deed
Required by banks for mortgage
Structural survey recommended
Administrative assistance
Required if mortgage
| Service | Cost | Notes |
|---|---|---|
| NIE application (foreigners) | €12 | Foreigner ID number, mandatory for property purchase |
| Nota Simple (property check) | €9-20 | Per property, verify ownership and charges |
| Independent lawyer fees | €1,000-3,000 | Due diligence, contract review, completion |
| Transfer Tax - ITP (resale) | 6-11% of price | Madrid 6%, Valencia 10%, Catalonia 11% |
| VAT (new build) | 10% of price | For new construction properties |
| Stamp Duty - AJD (new build) | 1.5% of price | Applies to new builds only |
| Notary fees | €600-1,500 | Fixed by law, scales with property value |
| Property Registry fees | €400-800 | Official registration of ownership |
| Mortgage arrangement fee | 0.5-1.5% of loan | Bank setup fee if financing |
| Mortgage notary | €300-600 | Separate notary for mortgage deed |
| Property valuation | €250-400 | Required by banks for mortgage |
| Survey/inspection (optional) | €300-800 | Structural survey recommended |
| Gestoría fees (optional) | €300-600 | Administrative assistance |
| Home insurance (first year) | €200-500 | Required if mortgage |
| Total estimate | Resale: 10-12% of purchase price. New build: 12-14% of purchase price. On €200,000 property: €20,000-28,000 total costs. | |
*Transfer Tax (ITP) varies significantly by autonomous community: Madrid 6%, Murcia 8%, Valencia 10%, Catalonia 11%. Non-residents face stricter mortgage terms (60-70% LTV vs 70-80% for residents). Always use an independent lawyer, never one recommended by seller or agent. Prices current as of January 2025.
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