Buying a villa or apartment in Spain is an exciting journey, but the legal structure differs fundamentally from Anglo-Saxon or Northern European systems. In Spain, liabilities, past taxes, and unauthorized construction attach to the property, not to the previous owner. Moreover, the Spanish notary does not conduct planning checks. With our structured approach, you buy safely and with complete peace of mind.
Spanish Property Buyer's Checklist
2026 ChecklistEnsure all 4 pillars are addressed before signing any reservation or paying a holding deposit:
1. Apply for your NIE Number (Foreigner ID Number)
Without an NIE, the public notary cannot execute the title deed, taxes cannot be filed, and Spanish bank accounts or utilities cannot be opened.
2. Determine Budget (Including 12% to 14% Purchase Costs)
In the Costa Blanca (Valencian Community), resale property incurs 10% ITP property transfer tax (or 10% VAT + 1.5% Stamp Duty for new-builds), plus 2% to 4% for notary, registry, and independent legal representation.
3. Conduct Full Legal Diligence (Nota Simple & Town Hall Checks)
Ensure your independent lawyer verifies land registry encumbrances, unpaid municipal IBI taxes, Community of Owners (HOA) debts, and habitability license (cédula de habitabilidad).
4. Review Mortgage & Financing (Max 70% for Non-Residents)
Spanish lenders finance up to 70% of the purchase price or valuation (whichever is lower). Ensure an official bank appraisal (tasación) is conducted and mortgage approval clauses are inserted.
How the Buying Process Works in Spain
International buyers often presume that the notary protects their interests as a conveyancing solicitor would. In Spain, the Notary Public is a civil servant who certifies that the transaction complies with formalities and witnesses the execution of the deed. However, the notary does not visit the property, check for unpermitted extensions or swimming pools, or verify whether municipal planning violations exist.
Never sign a reservation agreement or transfer funds before an independent lawyer or gestor has reviewed the official Land Registry extract (Nota Simple Informativa) and confirmed the draft terms.
Step-by-Step Purchase Roadmap
Step 1: NIE Number & Spanish Bank Account
Your NIE (Número de Identificación de Extranjero) is essential for every legal, fiscal, and administrative step in Spain. Obtain your NIE via power of attorney or at a Spanish consulate before your buying trip. You will also need a Spanish bank account from which your guaranteed banker's draft (cheque bancario) is issued on completion day.
Step 2: Understand the Buying Costs (12% to 14% on top)
Budgeting accurately is critical. On the Costa Blanca:
- Resale Homes: 10% Property Transfer Tax (ITP).
- New Developments: 10% VAT (IVA) + 1.5% Stamp Duty (AJD).
- Notary & Land Registry Fees: Approx. 1.0% to 1.5%.
- Independent Legal Counsel: Approx. 1.0% (typically €1,500 – €2,500).
| Property Price | Transfer Tax (10% ITP) | Notary & Registry | Legal Fees | Total Purchase Costs (Approx 12.5%) |
|---|---|---|---|---|
| € 180,000 | € 18,000 | € 2,000 | € 1,800 | € 21,800 (Total: € 201,800) |
| € 280,000 | € 28,000 | € 2,600 | € 2,500 | € 33,100 (Total: € 313,100) |
| € 450,000 | € 45,000 | € 3,400 | € 3,500 | € 51,900 (Total: € 501,900) |
Step 3: Legal Searches & Due Diligence
Before paying a binding 10% deposit, your legal representative must obtain:
- Nota Simple Informativa: Verifies registered ownership, outstanding mortgages, embargos, and boundaries.
- Cédula de Habitabilidad / Licencia de Ocupación: Town hall certificate of occupancy. Required to connect mains electricity and water.
- Community of Owners Certificate: Confirms the property is fully up to date with communal service fees.
- IBI (Rates) Receipts: Proof that local property taxes are settled for the preceding 4 years.
Step 4: The Arras Contract (10% Deposit)
Once searches are clear, the formal private purchase contract (Contrato de Arras) is signed, and a 10% deposit is transferred. In Spain, this is almost always executed under Article 1454 of the Civil Code: if the buyer withdraws without contractual breach by the seller, the deposit is forfeited; if the seller withdraws, they must return double the deposit.
Step 5: Completion at the Notary (Escritura de Compraventa)
On the appointed completion date, all parties gather before the Notary. The deed is read, payment is delivered via bank drafts, and the keys are handed over. Following signing, purchase taxes (Modelo 600) must be paid within 30 days, the deed registered at the Land Registry, and utility contracts transferred.
Securing your Costa Blanca home?
House in Spain takes complete care of your property with professional key holding, routine inspections, and local administrative support. House in Spain is on-site within 15 minutes in case of emergency.
Common Traps to Avoid
- Unlicensed Extensions: Outbuildings, covered terraces, and swimming pools must be formally recorded in the deed and cadastre. Otherwise, the buyer inherits legalization costs and potential fines.
- Missing Annual Non-Resident Taxes: Non-resident owners must file Modelo 210 every year, even if the property is purely for private holiday use.
- Leaving the Home Unattended: Heavy flash storms (Gota Fría), power trips, and security risks make reliable, local key holding indispensable.
Frequently Asked Questions
How much deposit is required to buy property in Spain?
Non-resident buyers can generally borrow up to 70% from Spanish lenders. In addition, purchasing costs total 12% to 14% on the Costa Blanca. Thus, a buyer seeking a mortgage requires approximately 42% to 45% in liquid equity.
What is the difference between a Spanish Notary and an independent lawyer?
The notary is a state official who registers the transaction and ensures legality of the document, but does not conduct planning checks or structural inspections. An independent lawyer or gestor represents your specific interests and uncovers hidden liabilities.
Can I buy without a Spanish bank account?
No. Spanish completions require payment via an official Spanish bank draft (cheque bancario), and ongoing utility bills and local taxes require a Spanish direct debit (SEPA).