Buying a Property

Buying property in Spain is straightforward when you know the sequence. Skip a step or get the order wrong, and it gets frustrating fast. Here’s the 8-step buyer journey we walk through with international clients on the Costa del Sol. Real costs, real paperwork, real timeline.

Step 1, Get your NIE

Your Número de Identificación de Extranjero comes first. Without it, you can’t sign a purchase deed, open a bank account, or register utilities. You have three ways to get one:

• Apply at a Spanish consulate in your home country (2-6 weeks).
• Apply in person at the Oficina de Extranjería in Málaga or Algeciras (appointment needed, 2-3 weeks).
• Have a Spanish lawyer apply on your behalf via power of attorney (cleanest for international buyers).

Cost: €9.80 state fee + legal fee if outsourced (typically €150-300).

Step 2, Open a Spanish bank account

You’ll need this for your mortgage, direct debits, community fees, and utilities. Santander, BBVA, CaixaBank, Sabadell and Bankinter all offer expat-facing non-resident accounts. They’ll ask for your NIE, passport, proof of address abroad, and proof of income. Expect maintenance fees of €120-240/year on non-resident accounts.

Step 3, Define the budget, including all the extras

This is where overseas buyers often get caught off guard. The purchase price is not your total cost. Plan for 10% and 14% on top of the purchase price in acquisition costs.

Resale property (second-hand)

• ITP (Transfer Tax), Andalusia: 7% flat.
• Notary fees, €600 to €1,500 depending on price.
• Land Registry, €400 to €900.
• Legal fees, 1% of price + VAT (industry norm for independent legal representation).
• Bank fees if using a mortgage, opening, valuation, insurance bundling.

New-build property (off-plan or first transmission)

• IVA (VAT), 10% on the purchase price.
• AJD (Stamp Duty), 1.2% in Andalusia.
• Notary + Registry + Legal as above.

Step 4, Financing (if applicable)

Here’s what non-resident mortgages from Spanish banks typically look like:

• Loan-to-value: typically 60-70% for non-residents, up to 80% for residents.
• Rate: fixed or variable (Euribor + 1-2%). Check both.
• Term: up to 25-30 years, usually capped at borrower age 70-75.
• Documentation: last 2 years of tax returns, 3-6 months of payslips, existing debts, property insurance.

A competent mortgage broker will quote 4-6 banks at once. We coordinate with specialists when clients prefer independence from the developer’s in-house finance.

Step 5, Find the property

Spain’s market is collaborative. Most agencies share listings through MLS networks and split commissions. So you don’t need to contact ten agents. One well-connected agent can show you the whole market, including off-market stock.

Watch out for these red flags:

• Agents pressuring viewings of one specific listing (“limited time”).
• Prices notably below market, which often indicates legal issues (unlicensed extensions, community debts).
• Developer-only teams refusing to work with external legal counsel.

Step 6, Reservation, due diligence, private purchase contract

Reservation contract

A small deposit (€6,000-€10,000 typical) takes the property off the market for 2-4 weeks while due diligence runs. It’s non-refundable if you withdraw without cause. Fully refundable if material defects come up during DD.

Due diligence

Your lawyer checks:

• Nota Simple, Land Registry extract: ownership, mortgages, charges, encumbrances.
• IBI status, is municipal tax paid up-to-date?
• Community debts, certificate from the community administrator.
• Licencia de Primera Ocupación (LPO), habitation license. Critical for new builds.
• Certificado de Eficiencia Energética (CEE), mandatory for sale.
• Urban situation, ayuntamiento certificate. Confirms no illegal extensions, no pending planning issues.
• ITE / Informe de Evaluación del Edificio, for buildings over 50 years old.

Private Purchase Contract (Contrato de Arras)

This is typically signed 2-4 weeks after reservation. You pay 10% of the price. Here’s how the penalties work:

• If buyer withdraws: loses the 10%.
• If seller withdraws: pays back 20% (double the deposit).

Completion date, property condition, and any conditions (e.g. subject to mortgage) are locked in here.

Step 7, Completion at the notary (Escritura Pública)

About 4-8 weeks after the arras signing, all parties meet at the notary. You sign the escritura de compraventa, transfer the remaining balance (usually by bank cheque), and get the keys. The notary reads the deed aloud. If your Spanish isn’t fluent, bring a translator or appoint your lawyer with power of attorney.

At the notary you hand over

• Final balance (bank cheque most common)
• Taxes (ITP or IVA+AJD), often paid directly from the bank cheque
• Notary fee on the day
• Proof of funds source (anti-money laundering, SEPBLAC)

Step 8, Post-completion

Your lawyer takes it from here:

• Registration of the escritura in the Registro de la Propiedad (1-2 months).
• Payment of ITP/AJD within 30 days of the deed.
• Change of name on utilities, IBI, community fees.
• Filing of Modelo 211 (3% retention tax) if buying from a non-resident seller.

Realistic timeline

• NIE + bank account setup: 2-6 weeks, can run in parallel with viewings.
• Property search: 1 week to 6 months depending on specificity.
• Reservation → completion: typically 6-10 weeks.
• Off-plan purchase: 12-36 months from reservation to delivery.

Common pitfalls

• Using the developer’s lawyer. Always appoint independent legal counsel.
• Ignoring community fees backlog. You inherit outstanding community debts under Spanish law.
• Buying a property with unlicensed extensions. Common in rural villas. Check the cadastral vs real measurements.
• Underestimating ongoing costs. IBI, community fees, utilities, insurance, wealth-tax-free but IRNR applies for non-residents.
• Holiday-letting without a licence. Andalusia requires Vivienda con Fines Turísticos registration. Heavy fines otherwise.

What a good agent actually does for you

• Filters the market so you see 12 properties, not 120.
• Negotiates price and conditions (5-15% below asking is normal in the current market).
• Coordinates with lawyer, notary, bank, tax advisor.
• Flags legal and structural issues before the reservation stage.
• Helps with move-in logistics: utilities, community registration, furniture, builders.