Guide to buy a home in spain


If you are looking to buy a house in Spain as a foreigner, you will need to follow the procedure mentioned below  before being able to buy a property.

The steps to follow when buying a house are not complícate but you have to be aware about it before to go ahead with the purchase. It  is necessary to have clear which taxes and expenses you will  to pay  on the top of the price agreed with the seller.


What do you need to buy a house in Spain?


The only thing you need, in legal terms, is the NIE (Número de Identificación del extranjero). This number, which is unique to each individual, is essential to carry out any transaction in Spain. Since it must appear on all documents that you sign or are issued in Spain, you must have it before signing the deed. The NIE is not complicated to obtain,  ask your real estate agent to make it easier for you to obtain the NIE in order to speed up the process as much as possible.

In addition, although it is not compulsory, having a bank account in Spain will make all the formalities easier, as it will make payments faster and will probably save you some commissions.

Finally, remember that once you are the owner of a property in Spain, you must appoint a tax representative if you are not resident in Spain.

How to buy a home in Spain step by step?


Although each buying process differs significantly, in general, the phases found in any real estate operation would consist of the following:

  1. Tax and Budget Planning: The costs of acquiring a house are mainly paid by the buyer, and vary from region to region. Taxes and other paid by the buyer include:
  • Property transfer tax 6–10% (existing Properties, resale) / VAT (or IVA) at 10% + 1.5 % (AJD) (new properties);
  • Notary costs, title deed tax and land registration fee 1–2.5%;
  • Legal fees 1–2% (including VAT).
  1. Get your NIE: Contact the Spanish administration to get your tax identification number. You don’t need a bank account to buy a house, but we advise you to get one before buying the house. If you take a lawyer, he will advise you in this matter. But the first thing to do is to apply for the NIE.
  2. Search for properties in Spain.  By making use of portals which is one the options more used.
  3. Reservation agreement and letter of Intent. A letter of intent may be presented by one party to another party and subsequently negotiated before execution (or signature).
  4. Payment of the Property Transfer Tax or VAT, as applicable and update the Land Registry.


All foreigner can buy a property in Spain?


Of course! There are no restrictions on buying property in Spain, whether it’s commercial, residential or land. In fact, Spain encourages investment by foreigners, both resident and non-resident.



All property owners in Spain are required to pay three different taxes each year. If you are a resident, you are subject to Income Tax (including Capital Gains Tax) and Real Estate Tax (IBI).
If you are a non-resident in Spain, you are subject to Income Tax (including Capital Gains Tax), Property Tax, plus an additional Non-resident Property Tax.

Deposit and Mortgage

In general, non-resident buyers in Spain can enjoy the same mortgage conditions as Spaniards, i.e. up to 80% cover in the case of a first home, and between 60 and 70% in the case of a second home.

This means that you must have a minimum of 20% of the price of the available property, plus approximately 15% extra on the cost of the property to pay taxes, lawyer’s fees, notary fees, etc. In addition, your debt cannot exceed 30-35% of your income.

Other important information to bear in mind is that mortgages in Spain are normally taken out for a minimum of five years and a maximum of thirty, with the maximum age of 75 years for completing the mortgage. It should also be noted that each institution has its own risk criteria, in which the country of residence can be included, and that properties abroad are not usually accepted as collateral, as it is difficult to reach them.


Taxes to buy a house in Spain

When you buy a property in Spain, you will be obligated to pay some taxes. Property taxes vary wether you are buying a brand new property or a resale property.

Taxes buying new property

When buying a brand new property, which is being sold for the first time, you will have to pay 10% VAT on the value of the property and the additional 1.5% on behalf of the Legal Documentation Tax.

Taxes buying a resale

When buying a resale property (a property that has changed hands at least once) you will be required to pay the Transfer Tax or ITP in Spanish, 



 Spain has always been a favorite destination for most persons seeking a good climate, be it for their annual holidays or for more long-term plans including moving to this country. Thanks to this wonderful climate, you can enjoy up to 3000 hours of sunshine per year depending on the coastal region you decided to move to. For golf lovers it is possible to practice this sport in most parts of Spain throughout the year without having to worry about weather conditions.

Besides the exceptionally good climate you will find very attractive properties - be it for sale or for rent - at an affordable price.  In addition:  the living expenses are much lower than they are in the average of the countries in the EU. So it is no wonder that an important number of tourists from many European countries after having spent their vacations here, decide to choose Spain as their permanent residence.
Just imagine yourself in mid-December enjoying a nice meal on a terrace alongside the coast of the Mediterranean sea. And the Spanish cooking is well renowned and especially very healthy as well.
If you seek companions, there are so many people from most European countries here that you will have no problems with loneliness or communication.  Many British expats are very engaged in active community life to the welfare of Spain. You find almost all economic enterprises you have in your home country, so you should have no problems getting things arranged and problems solved. And not to forget : most Spaniards are very welcoming, open-minded,  friendly and helpful.
Despite the market fluctuations, you always will have the opportunity to make an excellent short, medium or long term investment in Spain due to the most competitive offers available in this sector in Europe.
So Don’t hesitate ,.. come over and discover this beautiful country with its natural wonders, its interesting history and culture, its castles, monasteries and cathedrals, its unbeatable beautiful coasts and last not least its excellent prospects for prosperous investments

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