How to buy a property in Spain, step by step
The whole process in plain English: what you need before you start, who does what at each stage, the real cost of buying, and every step from the first viewing to the keys.
Buying in Spain is a clear, well worn path, but it runs differently from buying at home. Several parties are involved, the deposits are binding, and the costs go beyond the price. Here is the whole picture at a glance, then we walk through each part properly.
Four things to line up first
Sort these before you find a property and the rest of the process runs far more smoothly. Two are essential for any buyer, and the other two protect you.
An NIE number
Your Spanish foreigner ID, needed before you can buy. We can obtain it for you, including under power of attorney. More on the NIE.
A Spanish bank account
You will need one to pay taxes and fees and to run a mortgage. Open it before completion. Your broker or lawyer can help you set it up.
An independent lawyer
To run the due diligence and protect your money. They must act only for you, never for the seller or agent. Our legal team.
Mortgage pre-qualification
If you are financing, confirm what you can borrow before you commit to anything. Check your eligibility in 60 seconds.
The purchase journey, stage by stage
Click through each stage to see what happens and what it means for you. This is the typical path for an international buyer purchasing with a mortgage.
From getting ready to the notary
Get ready
Before you find a property, sort your NIE, open a Spanish bank account, appoint an independent lawyer and, if you are financing, get pre-qualified for a mortgage. With these in place you can move quickly and from a position of strength when the right property appears.
Reserve the property
Once you find the property, a reservation takes it off the market, normally for around 30 days, while you run your checks. The deposit is usually 3,000 euros, or about 1% of the price on higher value homes. Your lawyer should negotiate the reservation contract so your deposit is protected if the finance, valuation or legal checks do not work out.
Due diligence
Your lawyer now verifies that the property is legal and clear. This is the stage that protects you, and it should always finish before you sign the arras contract.
- Title and ownership confirmed
- All licences and permissions in place
- No outstanding debts or charges
- Cadastral and land registry agree
- No community or utility arrears
- No town hall sanctions
Valuation
If you are financing, the bank instructs an approved valuer to inspect the property. It usually takes 7 to 14 days. The bank lends against the lower of the price or the valuation, so if the valuation comes in under the agreed price, you make up the difference or renegotiate. A cash buyer can skip this stage.
Arras contract
The arras is the private purchase contract. You pay around 10% of the price and both sides are locked in. If you pull out you lose the 10%. If the seller pulls out they normally owe you double. Sign it only once due diligence is done and your mortgage is in place. Your lawyer drafts it and can sign for you under power of attorney.
Completion at the notary
The deed is signed before a Spanish notary. The bank, the seller and the lawyers are present, the funds and taxes are paid, and you receive the deeds and the keys. If you cannot travel, your lawyer can complete the whole thing on your behalf under power of attorney.
The responsibility chart
A property purchase involves five parties: you, the estate agent, your mortgage broker, the bank and your lawyer. This shows who takes the lead and who signs at each stage. Filter by a party to see exactly where they come in.
Property viewings
Negotiation
Reservation
Due diligence
Mortgage offer (AIP)
Valuation
Arras contract
Binding offer (FEIN)
Acta previa
Completion at the notary
NIE number
Spanish bank account
What buying really costs
The price is not the whole story. On a resale home, budget around 10 to 13% on top for taxes and fees. New builds carry VAT and stamp duty instead of transfer tax, which works out a little higher. Here is where the money goes.
Transfer tax (ITP), resale
The main tax on a resale home, paid by the buyer. It varies by region, from about 6 to 10%. In Andalucia it is a flat 7%.
VAT plus stamp duty, new build
On a brand new property you pay 10% VAT (IVA) instead of transfer tax, plus stamp duty (AJD) of roughly 1.2%, which varies by region.
Notary and land registry
Official fees set on a sliding scale, for signing the deed and registering you as the new owner.
Legal fees
Conveyancing by your independent lawyer: due diligence, contracts and completion. Typically about 1% of the price plus IVA.
Mortgage costs
Since 2019 the bank pays most mortgage taxes and fees. You cover the valuation and any arrangement fee the lender charges.
Gestoria
Handles the administrative paperwork and tax filing after completion. Usually a few hundred euros.
The reservation and your deposit
Reserving a property takes it off the market, normally for around 30 days, while you complete your legal checks, the valuation and the mortgage. The deposit is usually between 3,000 euros and 1% of the price. The key is making sure it is refundable if something genuinely goes wrong.
- Subject to finance: a refund if your mortgage is declined.
- Subject to valuation: a refund or renegotiation if the valuation comes in low.
- Subject to clear legal checks: a refund if due diligence finds debts, licensing or title problems.
These clauses have to be written into the reservation contract. If they are not, your deposit may be at risk. That is exactly why your lawyer should review the contract before you pay anything.
Understand arras before you sign
The arras contract (contrato de arras) is the private purchase agreement. You pay around 10% of the price and both sides are then locked in. If you pull out, you normally lose that 10%. If the seller pulls out, they usually owe you double. The real danger for buyers is signing arras and paying the 10% before the mortgage is confirmed and the legal checks are done, then losing the deposit if the loan falls through.
The fix is simple. Finish due diligence and have the mortgage in place before you sign arras, and let your lawyer negotiate the contract. Because Foxes runs the mortgage and the legal side together, your finance and your contract never get out of step, so you are never committing to a contract your finance has not caught up with.
The most common pitfalls
Most problems in a Spanish purchase come down to a handful of avoidable mistakes. Knowing them in advance is half the battle.
- Paying a deposit with no protective clauses. Without subject to finance, valuation and legal clauses, a reservation deposit can simply be lost.
- Signing arras before the mortgage is confirmed. The most expensive mistake there is: losing 10% of the price because the loan did not come through.
- Rushing or skipping due diligence. Unregistered extensions, debts or licensing problems pass to the new owner. The checks exist to catch them.
- Underbudgeting for costs. Taxes and fees add 10 to 13% on top of the price. Buyers who only plan for the deposit get caught short at completion.
- Using the seller's or agent's lawyer. Your lawyer must be independent and act only for you, with no conflict of interest.
Frequently asked questions
From an agreed offer to signing at the notary is commonly around eight to twelve weeks. It can be quicker in a cash purchase, or longer if the legal checks uncover issues to resolve first.
Budget roughly 10 to 13% on top of the price for a resale home. That covers transfer tax, notary, land registry and legal fees. A new build carries VAT plus stamp duty, which works out a little higher.
Yes. Every foreign buyer needs an NIE, a foreigner identification number, before completing. We can obtain it for you, including under power of attorney if you are not in Spain.
In practice yes. You will need a Spanish account to pay taxes and fees and to run a mortgage. Open it before completion. Your broker or lawyer can help you set it up.
The arras contract is the private purchase agreement. You pay around 10% of the price and both sides are then bound, with penalties for pulling out. You normally lose the deposit if you withdraw, and the seller typically owes you double if they do.
Yes. Your lawyer can act under a power of attorney and sign on your behalf at the notary, so the purchase can complete without you being in the country.
It is not legally required, but it is strongly advised. An independent lawyer who acts only for you runs the due diligence and protects your money throughout the purchase.
Usually between 3,000 euros and 1% of the price. It takes the property off the market for around 30 days while you complete the legal checks, the valuation and the mortgage.
Buy in Spain with both sides handled
Foxes runs the mortgage and the legal work together, so your finance and your purchase stay in step from the first viewing to the keys.