Buying Property in Spain: Complete Guide for Expats (2026)

Taxes, costs, step-by-step process, new build vs resale — everything expats need to know before buying property in Spain.

Spain remains one of the most popular destinations for expats buying property in Europe. Whether you're dreaming of a Costa del Sol villa, a Madrid apartment, or a rural finca in Galicia, the purchasing process involves taxes, legal steps, and costs that differ significantly from other countries. This guide walks you through everything you need to know — from the first steps to signing at the notary.

Before You Start: Legal Requirements

Buying property in Spain as a foreigner requires a few essentials before you can sign any contracts.

NIE Number

Every foreign buyer must have a Spanish NIE (Número de Identificación de Extranjero) — the tax identification number for foreigners. Without it, you cannot sign a title deed, open a bank account, or pay property taxes. See our complete NIE guide for how to obtain one from Spain or abroad.

Spanish Bank Account

You'll need a Spanish bank account to pay the seller, cover taxes, and set up utility direct debits. Most banks accept non-residents. Required documents typically include your passport, NIE, and proof of income.

Poder Notarial (Power of Attorney)

If you cannot be present in Spain for every step, you can grant a trusted person (often your lawyer) a poder notarial — a notarized power of attorney — to act on your behalf.

The Step-by-Step Buying Process

Purchasing property in Spain typically takes 6–12 weeks from agreeing a price to receiving the keys. Here are the key stages:

Step 1: Property Search and Offer

Use portals like Idealista, Fotocasa, or Habitaclia, or work with a local estate agent. Once you find a property, make a verbal offer. If accepted, proceed to a reservation agreement.

Step 2: Reservation Agreement (Contrato de Arras)

The contrato de arras is a preliminary private contract that locks in the agreed price and timeline. You pay a deposit — typically 10% of the purchase price. There are two types:

• Arras confirmatorias: simple deposit, no automatic penalty clauses
• Arras penitenciales (most common): if the buyer walks away, they lose the deposit; if the seller backs out, they must return double the deposit

Step 3: Legal Due Diligence

Your lawyer will request a nota simple — a land registry extract — from the Registro de la Propiedad. This document confirms:

• Who legally owns the property
• Any outstanding mortgages, charges, or liens
• Boundary descriptions and registered surface area

Your lawyer should also verify IBI (council tax) payments are up to date and check for any community charges owed.

Step 4: Apply for a Mortgage (if needed)

If you require financing, apply to Spanish banks now. Lenders will conduct their own property valuation (tasación). See our mortgage guide for expats for full details on conditions and government programmes.

Step 5: Signing the Escritura Pública

The escritura pública (public title deed) is signed before a notary (notario) by both buyer and seller. At this point:

• The remaining purchase price is transferred (usually via banker's draft)
• You pay the applicable taxes (ITP or IVA+AJD — see below)
• The notary retains a copy and submits for Land Registry inscription

Step 6: Registration and Final Costs

After signing, your lawyer or the notary submits the deed to the Registro de la Propiedad. Registration takes 2–6 weeks. You'll pay the land registry fee and receive a certified copy of your ownership.

New Build vs Resale: Tax Differences

This is one of the most important distinctions in Spanish property purchases. The tax you pay depends on whether the property is new (primera transmisión) or resale (segunda mano).

Special cases:

• Social housing (VPO/VPP): IVA is reduced to 4% for officially protected housing
• Canary Islands: IVA does not apply; instead, IGIC (a local tax) at 6.5% applies to new builds
• Ceuta and Melilla: IPSI (local tax) at lower rates instead of IVA

Property Transfer Tax (ITP) by Region

For resale properties, ITP is regulated by Real Decreto Legislativo 1/1993, but each autonomous community sets its own rate. This is often the largest single tax cost for resale buyers.

Complete Cost Breakdown

Beyond the taxes, buyers must budget for a range of professional fees and administrative costs. As a rule of thumb, budget 10%–15% on top of the purchase price.

Example: buying a €250,000 resale apartment in Madrid

• ITP at 6%: €15,000
• Notary: €900
• Land Registry: €600
• Lawyer: €2,500
• Total additional costs: ~€19,000 (7.6%)

For the same property in Valencia (ITP 10%), total additional costs would be ~€27,500 (11%).

Reduced Rates and Exemptions

Many regions offer lower ITP rates for specific buyer profiles:

• Young buyers (under 35–36): Madrid (4%), Galicia (3%), Andalucía (3.5% on VPO properties), Extremadura (3%)
• Large families (familia numerosa): Multiple regions offer rates of 4%–5%
• Persons with disabilities (≥33% recognized disability): Most regions offer 4%–5% ITP
• Rural depopulation zones: Some regions (Castilla y León, Aragón) offer 0% ITP or significant discounts for properties in municipalities with under 10,000 inhabitants

To claim a reduced rate, you must request it explicitly when paying the tax (within 30 days of signing the escritura) and provide supporting documentation.

Ongoing Property Taxes After Purchase

Buying is not the end of your tax obligations. As a property owner in Spain, you'll also pay:

• IBI (Impuesto sobre Bienes Inmuebles): Annual council tax based on the valor catastral (rateable value), typically 0.4%–1.1% of the cadastral value. Paid to the local municipality each year.
• IRNR (Non-Resident Income Tax): If you're not a Spanish tax resident, you pay an annual imputed income tax on the property even if you don't rent it out — typically 1.1%–2% of cadastral value × 19%–24% tax rate.
• Plusvalía Municipal: Paid by the seller on the increase in land value (valor del suelo) since they acquired the property. Confirm this is settled before purchase.
• Wealth Tax (Impuesto sobre el Patrimonio): May apply if your worldwide assets exceed thresholds — see our wealth tax guide.

Frequently Asked Questions

Can foreigners buy property in Spain without residency?

Yes. There is no legal requirement to be a resident to purchase property in Spain. Non-residents and non-EU citizens can buy freely. You only need a valid NIE number. However, if you are a non-resident, you will be subject to IRNR (non-resident income tax) on an annual basis.

Do I pay ITP or IVA — how do I know which applies?

If you buy directly from a developer (new build, first sale), you pay IVA (10%) + AJD. If you buy from a private individual or a property that has been previously owned, you pay ITP. The key criterion is whether it is the first transfer of the property after construction.

How long does the whole process take?

From agreeing a price to receiving keys: typically 6–12 weeks. The notary signing can happen faster if financing is not involved (cash buyers can complete in 3–4 weeks). Land Registry inscription after signing takes an additional 2–6 weeks.

Can I negotiate the asking price?

Yes, negotiation is normal in Spain. In 2025, the Spanish property market is active but not overheated in most regions. Discounts of 5%–10% on asking price are common, more in slower markets or for properties that have been listed for a long time.

What is the nota simple and do I need one?

A nota simple is a summary extract from the Land Registry showing ownership, debts, and charges on a property. It costs around €10 and can be ordered online via the Colegio de Registradores. Always obtain one before signing any contract — it's the most important due diligence document.

Are there risks specific to expats buying in Spain?

Yes. Common pitfalls include: buying without independent legal advice, purchasing properties with undeclared extensions or illegal builds, overlooking community debt (deudas de comunidad), and underestimating the total tax burden. Always use an independent lawyer and never rely solely on the estate agent's advice.