Buying a Property in Spain – The Buying Process

As is the case in all countries, Spain has a unique procedure for buying property. The process will probably be unfamiliar to you and involve professionals who may not play a part in property transactions in your home country. It’s therefore important to take advice from your real estate agent and lawyer, both used to the Spanish way of doing things.

Process of Buying Property in Spain

This article provides an overview of the main steps involved in buying property on the Costa del Sol, from the initial property searches to the key handover when you become the owner of your new home in Spain.

First Steps

• Set your budget – do some maths and work it out. Don’t forget to add between 10 to 13% for taxes and fees.
• Pinpoint your chosen area – decide where you’d like to live in Spain. You may have a good idea already from previous research or visits, or maybe need some pointers. Ask your real estate agent for advice on which places offer what you’re looking for.
• Prepare a must-have list – once you have chosen your location and set your budget, make a list of what you want in the property. Keep in mind that you may not find a home that ticks all your boxes, but with the help of a real estate agent, you should be able to source one that gives you almost everything.
• Use a property finder – make life easier for yourself and save time and stress by contracting the services of a property finder. Let them source homes that fit into your requirements and budget as well as having the right location.
• Survey – depending on the state and/or age of the property you’re buying, you might want to get a survey. The survey findings may help in negotiating the price if the property requires extensive renovations.
• Make an offer – when you find your ideal home, you might want to make an offer on the price. Most property owners are open to offers, although they’ll expect it to be a serious one reflecting several factors, including the current market, state of the property, whether you’re a cash buyer, etc. Ask your real estate agent for advice on negotiating the property price.

Buying Off-Plan? A Few Things Work Differently

If you’re buying a new-build unit rather than a resale property, which is quite common on the Costa del Sol, the process has a few extra safeguards that protect the buyer:

• Stage payments – instead of paying the full price on completion, you pay in instalments tied to construction milestones, agreed in the contract.
• Bank guarantees – by Spanish law, any money you pay before the keys are handed over must be backed by a bank guarantee, which protects your deposit if the developer fails to deliver.
• Longer timelines – off-plan purchases naturally take longer than resale, since completion depends on the construction schedule rather than an existing property changing hands.

Your lawyer should confirm the guarantee is properly in place before you make any stage payment; this is one of the most important checks in an off-plan purchase.

Next Steps

Once your offer has been accepted, the buying process starts. At this stage of the procedure, you should do the following:

• Get your NIE number – the Número de Identificación de Extranjero is a tax ID number that foreign buyers need for essentially every part of the process, including opening a bank account and paying taxes. It’s worth applying for this as early as possible, since it can take a few weeks depending on where you apply.
• Open a Spanish bank account – you’ll need one to pay the deposit, receive the banker’s draft for completion, and set up direct debits for utilities and community fees afterwards.
• Contract a lawyer – do this before you pay a deposit or sign any legally binding paperwork on the property. Instruct your lawyer to carry out basic legal checks on the property.
• Sign the pre-purchase contract – this document secures the property for you and outlines the terms and conditions of the transaction, including the deadline for purchase. The contract is signed by the buyer and the seller (or their representatives), and the buyer usually pays 10% of the purchase price on signing. If the house is being sold with fixtures and fittings and/or furniture, the contract should have an inventory attached, which is signed by both parties.
• Mortgage application – if you need a mortgage to buy the property, now is the time to start the application process. Non-resident buyers should expect banks to lend a lower proportion of the property value than they would to a resident, and approval can take several weeks. Ask your bank for a realistic timeline and make sure the pre-purchase contract factors this mortgage application.

Legalities on the House

Meanwhile, your lawyer creates a comprehensive checklist on the property to make sure it’s 100% legal. These checks include:

• Property register checks – to confirm ownership, verify that the property is correctly registered, and check for outstanding debts or charges
• Planning checks – to ensure the property was built with the appropriate building licence and planning permissions. Or in the case of an off-plan property, to make sure the developer has all paperwork in order.
• Tax checks – to ensure the current owners are up-to-date on payment of all taxes related to the property.
• Community checks – to ensure the property is up-to-date with payments to the community of owners.

Final Steps

After completing these steps, it’s time to complete the buying process, which includes:

• Sign the deeds – both parties sign the title deeds in the presence of a Notary Public. Your lawyer should check the deeds and make sure everything is in order, as well as provide you with a verbal translation of their contents. If you can’t be in Spain for completion, your lawyer can complete on your behalf using a power of attorney.
• Payment – you make the final payment for the property. The usual method of payment is through a banker’s draft.
• Key handover – once the title deeds have been signed and final payment made, you receive the keys to your new home.
• Registration – your lawyer or real estate agent will take care of registering the property in your name at the nearest Property Registry (Registro de la Propiedad).
• Payment of taxes – your lawyer or real estate agent will also pay the appropriate taxes and fees on your behalf.
• Utility supplies – your lawyer or real estate agent will arrange for the connection of utility supplies or the transfer of utility contracts to your name. They will also set up direct debit with your bank so that bills are paid automatically.

How Long Does the Buying Process Take?

The exact timeline depends on the type of property and whether you’re purchasing with a mortgage. A straightforward resale purchase often takes between six and eight weeks from the reservation agreement to completion.
Off-plan properties follow a different timeline, as completion usually takes place once construction has finished. If you’re buying off-plan, your developer will provide an estimated completion date, although this can sometimes change depending on the progress of the development.

What Are the Costs of Buying Property in Spain?

In addition to the purchase price, buyers should budget for taxes and professional fees. As a general guide, it’s sensible to factor in around 10% to 13% of the property’s purchase price to cover buying costs. The exact amount depends on whether you’re purchasing a resale property or a new-build home, as different taxes apply.
Typical costs include property transfer tax or VAT, stamp duty on new-build homes, legal fees, notary fees, Land Registry fees and mortgage-related expenses where applicable.
In order to understand these costs, read our guide about taxes and fees involved in buying property in Spain.

Common Mistakes to Avoid

Buying property in Spain is generally straightforward, but there are a few mistakes that can make the process more complicated.
One of the most common is not appointing an independent lawyer. While estate agents and developers play an important role, your lawyer is the person responsible for protecting your legal interests throughout the buying process.
Another mistake is focusing only on the property’s price without considering taxes, legal fees and ongoing ownership costs. Many buyers also delay applying for their NIE or arranging their mortgage, which can slow down the transaction later.
Taking time to prepare properly before making an offer will usually make the entire buying process much easier.

Ready to Buy Property in Spain?

Buying property in Spain can be a smooth experience when you understand the process and take the right steps. From setting your budget and getting your NIE number sorted early, to signing the deeds, each stage requires careful attention. By working with experienced professionals such as real estate agents and lawyers, you can ensure the entire buying process is smooth.
Whether you’re searching for a beachfront apartment, a golf property, a family villa or an investment property on the Costa del Sol, our team can help you find the right home and support you from your first viewing to completion.
If you’re ready to start your property search or simply have questions about buying in Spain, get in touch with our team. We’re here to help make the buying process as smooth as possible.