Step-by-Step Guide to Buying Property in Spain as a Non-Resident

Buying property in Spain as a non-resident is straightforward once you understand the process. It is also very easy to make expensive mistakes if you don't. This guide covers every step — from the initial property search to collecting the keys — including the legal, financial and administrative requirements specific to international buyers.

Step 1 — Define Your Budget (Including Taxes and Fees)

Before you start viewing properties, establish your total budget — not just the purchase price. In Andalucía (which covers the Costa del Sol), you should budget approximately 10–12% on top of the purchase price for taxes and fees:

• ITP (Property Transfer Tax): 7% for resale properties
• Notary fees: 0.3%–0.5%
• Land Registry fees: 0.1%–0.25%
• Legal fees: approximately 1%
• Mortgage costs (if applicable): 1%–2% additional

A property priced at €350,000 will typically cost you approximately €385,000–€392,000 all-in.

Step 2 — Get Your NIE Number

The NIE (Número de Identificación de Extranjero) is mandatory for any official transaction in Spain. You cannot open a bank account, sign a contract or pay taxes without one. Start this process as early as possible — ideally before you even begin viewing properties seriously.

We handle NIE applications as part of our standard service, including by power of attorney if you are not in Spain. See our full guide: The NIE Number in Spain.

Step 3 — Open a Spanish Bank Account

You will need a Spanish bank account to:

• Receive and transfer funds for the purchase
• Pay taxes and fees at completion
• Set up direct debits for community fees, IBI and utilities after purchase

Most Spanish banks allow non-residents to open a non-resident current account (cuenta no residente). The requirements vary by bank but typically include your NIE, passport and proof of income. We assist clients with this process.

Step 4 — Find Your Property and Instruct a Lawyer Before You Sign Anything

When you find a property you are serious about, instruct a lawyer before signing any document or paying any reservation fee. Even a small reservation payment can create legal obligations that are difficult to undo if problems emerge later.

Your lawyer carries out due diligence on the property before you commit:

• Verifies legal ownership and checks the Land Registry
• Checks for outstanding mortgages, debts and encumbrances
• Confirms the property is free of community fee arrears
• Verifies planning status and building licences
• Identifies any illegal structures that could affect the sale or resale
• Reviews the energy performance certificate and habitability licence

Step 5 — Reservation Contract and Deposit

Once due diligence is satisfactory, you typically sign a reservation contract and pay a small deposit (contrato de reserva) — usually €3,000–€6,000. This takes the property off the market while the main contract is prepared.

Your lawyer reviews this contract before you sign to ensure it accurately reflects the agreed terms and protects your right to a full refund if legal problems are discovered.

Step 6 — Private Purchase Agreement (Contrato de Arras)

The contrato de arras is the main private contract, signed by both buyer and seller. It sets out all the terms of the purchase: price, payment method, completion date, conditions and consequences of withdrawal by either party.

Under a standard arras penitenciales agreement:

• If the buyer withdraws without legal justification: the deposit is forfeited
• If the seller withdraws: they must return double the deposit to the buyer

The typical deposit at this stage is 10% of the purchase price. Your lawyer drafts or reviews every clause of this contract to protect your position. This is one of the most important documents in the entire process.

Step 7 — Mortgage (If Applicable)

If you are financing the purchase with a Spanish mortgage, the bank will require a property appraisal (tasación) and will issue a formal mortgage offer (FEIN — Ficha Europea de Información Normalizada) at least 10 days before signing. Your lawyer reviews the mortgage conditions before you accept.

Non-residents can typically borrow up to 70% of the appraised value. See our full guide: Mortgage assistance for non-residents.

Step 8 — The Notary and Final Deed

The final stage takes place at a Spanish notary (notaría). Both buyer and seller (or their legal representatives) sign the public deed of sale (escritura pública de compraventa). If you have a mortgage, the mortgage deed is signed at the same time.

At this point you pay the balance of the purchase price, typically via a bank cheque (cheque bancario) or wire transfer arranged by your lawyer.

Your lawyer attends the notary with you — or acts as your representative by power of attorney if you cannot be there in person.

Step 9 — Taxes and Registration

After completion, your lawyer manages the following within strict deadlines:

• Filing and payment of ITP (7% in Andalucía) within 30 working days
• Registration of the deed in your name at the Land Registry
• Updating the IBI (council tax) records with your name as new owner
• Notifying the community of owners
• Setting up utility transfers and direct debits

Step 10 — Post-Sale Obligations as a Non-Resident Owner

Once you own the property, you have annual tax obligations in Spain even if you do not live there:

• IBI: annual local council property tax
• Non-resident income tax (IRNR): even if you don't rent the property, Spain taxes an imputed income based on the cadastral value
• Rental income tax: if you rent the property, tax is payable quarterly

For these ongoing obligations, we work with our partners at International Tax Legal Spain, who manage non-resident tax compliance and annual filings on behalf of property owners across Spain.

If you plan to rent on platforms like Airbnb, a tourist licence is also required in Andalucía. Our partners at Licencia Turística Andalucía manage this process.

Typical Timeline for Buying Property in Spain

Related Articles

• Why You Need a Real Estate Lawyer When Buying in Spain
• The NIE Number in Spain: Complete Guide
• ITP Tax When Buying a Resale Property in Spain
• Our full range of services for international buyers