Real Estate

Buying property in Spain — let’s start with knowing what to expect.

Tiberia provides property guidance throughout the buying process. Before committing, understand the key steps, costs and legal considerations involved.

Buying property in Spain. All the things to consider.

Foreign nationals can generally buy property in Spain without being Spanish residents. However, the requirements and practical considerations differ depending on your nationality, financial circumstances and intended use of the property. Buying a holiday home, purchasing an investment property and moving to Spain permanently each involve different considerations beyond the transaction itself.

A note on Spain’s Golden Visa

Spain’s Golden Visa program, which previously allowed non-EU nationals to apply for residency through qualifying investments, including at least €500,000 in Spanish real estate, was abolished on 3 April 2025.

Purchasing property in Spain no longer provides a route to residency under this scheme. Foreign buyers can still purchase property, but those who intend to live in Spain need a different route such as a non-lucrative visa, digital nomad visa, or work-based permit.

learn More about moving to spain →

Essential Preparations: NIE, Spanish Bank Account, Independent Property Lawyer

Before completing a property purchase in Spain, foreign buyers should prepare the identification documents and financial arrangements required for the transaction. Two matters commonly arise early in the process: obtaining a Foreigner Identification Number (NIE) and arranging a suitable bank account for payments.

Neither necessarily needs to be completed before beginning the property search. However, leaving them until the last minute can complicate the transaction, particularly when dealing with international transfers, mortgage applications or completion deadlines.

1. Obtaining your NIE

The Número de Identidad de Extranjero (NIE) is a personal identification number assigned to foreign nationals who have economic, professional or social interests in Spain. It is used to identify an individual in dealings with Spanish authorities and appears in relevant administrative, financial and property documentation.

Foreign buyers generally need an NIE to complete the associated tax and administrative formalities of purchasing property. However, an NIE is not a residence permit. It does not, by itself, grant the right to live in Spain, and obtaining one does not make its holder a Spanish tax resident.

How do you obtain an NIE?

There are several ways to apply, depending on where you live and your circumstances:

In Spain: Applications can be submitted through the appropriate Foreigners’ Office or National Police station, subject to the applicable procedure and appointment requirements.
From abroad: You can apply through the Spanish consulate responsible for your place of residence.
Through a representative: An authorized representative may be able to submit the application on your behalf, provided the applicable representation requirements are met.

The standard application generally involves form EX-15, proof of payment of the relevant administrative fee, valid identification and documentation explaining the reason for the request. Additional requirements may apply depending on the circumstances.

The official procedure specifies a maximum resolution period of five days from registration of the application with the competent authority. This is the administrative resolution period, not a guarantee that an appointment will be available within five days or that the entire process will take that long.

When should you apply?

It is sensible to begin the process early if you intend to purchase property. Appointment availability and processing arrangements can vary, particularly between consulates and local offices. You do not necessarily need an NIE before viewing properties or making initial enquiries, but you should allow sufficient time to obtain it before the transaction requires it.

Further information and the application procedure are available from the Spanish National Police.

2. Opening a Spanish bank account

A Spanish bank account can make the purchase process easier by providing a practical way to arrange payments and manage expenses associated with the property. It may be useful for transferring purchase funds, paying utilities, setting up direct debits and handling recurring property expenses.

However, a Spanish bank account is not a universal legal prerequisite for every property purchase. The appropriate arrangements depend on the transaction, the payment method, any mortgage requirements and the parties involved. Buyers should establish the expected payment arrangements with their lawyer and bank in advance.

Can non-residents open a Spanish bank account?

Yes. Spanish banks offer accounts to non-residents, although eligibility, documentation and account conditions vary between institutions. You do not necessarily need to become a Spanish resident to open an account.

The bank will need to verify your identity and complete its customer due diligence procedures. Depending on the institution and your circumstances, it may request:

A valid passport or national identity document.
Your NIE, if required for the account or your circumstances.
Proof of residential address.
Evidence of employment, occupation or source of income.
Information about your tax residence and tax identification number in your country of residence.
Documents establishing the origin of funds to be deposited or transferred.

Additional documentation may be required for non-residents, people with complex financial arrangements or customers transferring substantial sums internationally.

Source of funds and banking checks

Banks in Spain must comply with anti-money-laundering requirements. As a result, they may ask you to explain where your money comes from and provide supporting documents. Depending on your situation, these might include bank statements, employment or business income records, sale-of-asset documentation or evidence of accumulated savings.

These checks are a normal part of opening and maintaining an account. Preparing the documentation in advance can help avoid delays when transferring the funds needed for completion.

Do you need to open the account before finding a property?

Not necessarily. You can begin researching the market and viewing properties before opening an account. Nevertheless, it is worth contacting banks early if you expect to need a mortgage or plan to transfer a substantial sum from abroad.

Compare account fees, transfer charges, exchange-rate arrangements and any conditions attached to non-resident accounts. If your purchase funds are held in another currency, consider the exchange-rate implications as part of your overall budget.

The Bank of Spain’s consumer guidance provides further information on account-opening documentation and verification requirements.

3. Appointing an Independent Property Lawyer

Buying property in Spain does not legally require you to appoint a lawyer in every case, but independent legal representation is strongly recommended, particularly if you are unfamiliar with the Spanish property system or purchasing from abroad.

The estate agent facilitates the transaction, while the notary formalizes the public deed and verifies certain legal requirements. Neither replaces the role of a lawyer acting exclusively in your interests.

An independent property lawyer reviews the transaction, investigates the property’s legal status and advises you on the obligations you accept when signing a contract.

What should your lawyer check?

Before you commit to the purchase, your lawyer should carry out appropriate due diligence, including:

Ownership: Confirming that the seller has the legal right to sell the property.
Land Registry records: Checking registered mortgages, charges, liens and other encumbrances.
Planning and building status: Investigating relevant planning permissions, building legality and outstanding issues, particularly for properties with extensions or alterations.
Debts and community obligations: Checking outstanding community fees and identifying other liabilities that may affect the property or buyer.
Contracts: Reviewing reservation agreements, contratos de arras and the proposed public deed, including deposit conditions, deadlines and consequences of withdrawal.
Property documentation: Checking the relevant certificates, licenses and documentation for the type and intended use of the property.

The scope of the checks will depend on the property. A rural house, an apartment in a communal building and a newly built property can raise very different legal questions.

When should you appoint a lawyer?

Ideally, appoint your lawyer once you have identified a property you are seriously considering, and before signing an agreement or paying a non-refundable deposit. If an agent asks you to reserve a property quickly, establish the legal and financial consequences before proceeding.

Your lawyer can also explain the purchase process, coordinate with the notary, review the completion documentation and advise on the relevant tax and registration formalities. Where specialist tax, planning or technical advice is needed, additional professionals may be required.

Choosing the right lawyer

Look for a qualified Spanish lawyer (abogado) with experience in property transactions involving foreign buyers. Confirm that the lawyer is independent of the seller and estate agent, understands your language and can explain the legal implications clearly.

Agree on the scope of work and fees in advance. Ask whether the quoted fee includes due diligence, contract review, completion, tax formalities and Land Registry follow-up, or whether these are charged separately.

A lawyer cannot eliminate every risk, but independent legal advice can identify significant issues before you become contractually committed.

Costs

The purchase price is only part of the total cost of acquiring a property in Spain. Buyers should also budget for purchase taxes, legal assistance, notary and registration fees, and any financing or administrative costs associated with the transaction.

The exact amount depends on the property’s price, whether it is a resale or a new build, the applicable regional tax rules and the circumstances of the buyer. It is therefore important to calculate the full acquisition budget before making an offer.

1. Purchase taxes

The main difference is between buying a resale property and purchasing directly from a developer.

Resale properties

Purchases of existing residential properties are generally subject to Impuesto sobre Transmisiones Patrimoniales (ITP), or Property Transfer Tax. The rate is set by the autonomous community where the property is located, and reduced rates or special conditions may apply to eligible buyers or transactions.

For properties in the Valencian Community it is 9% for value under €1 million; 11% for value over €1 million.

The taxable amount may also be affected by the property’s official reference value. Where this value applies, it can establish the minimum taxable base unless the price, consideration or declared value is higher.

New-build properties

The purchase of a new residential property directly from a developer is generally subject to Value Added Tax (VAT, or IVA) rather than ITP. The usual VAT rate for new homes is 10%, although different rules apply to certain types of property.

In addition, Actos Jurídicos Documentados (AJD), or Stamp Duty, may be payable on the public deed of purchase. The applicable rate depends on regional legislation and the circumstances of the transaction.

The distinction matters: two properties with the same purchase price can have different acquisition costs depending on whether they are resale or new-build properties.

2. Legal fees

An independent property lawyer will typically review the purchase agreement, investigate the property’s legal status, carry out due diligence and advise you through completion.

Fees vary depending on the lawyer, the complexity of the transaction and the scope of work agreed. Confirm in advance whether the quoted fee includes contract review, searches, completion, tax formalities and Land Registry follow-up, or whether some services are charged separately.

Legal assistance should be budgeted for from the beginning rather than treated as an optional expense to consider after agreeing on a price.

3. Notary and Land Registry fees

The purchase is generally completed by signing a public deed (escritura pública) before a Spanish notary. The deed can then be submitted to the Land Registry (Registro de la Propiedad) to register the change of ownership.

Notary and registration fees are regulated by official tariffs, with the final amounts depending on the transaction and documents involved. Additional administrative or document-handling services may also generate fees if you choose to use them.

Your lawyer or conveyancing professional can provide an estimate based on the property and the planned transaction.

4. Mortgage and financing costs

If you require a mortgage, budget for the costs associated with obtaining financing. These may include a property valuation, applicable bank charges and any independent legal or administrative services you choose to use.

Spanish mortgage rules allocate certain formalization costs between the lender and borrower. For example, the lender generally pays the notary, registry and administrative costs associated with formalizing the mortgage deed, while the borrower pays for the property valuation. Other costs depend on the product and circumstances, so review the bank’s offer carefully.

Non-resident applicants may face different lending criteria from Spanish residents. The deposit required, income documentation, loan terms and approval process depend on the lender and the applicant’s financial position.

5. Other costs to consider

Depending on the property and transaction, further expenses may include:

Currency exchange and international transfers: Exchange-rate movements and transfer fees can affect the final amount received in Spain.
Technical inspections: A building survey or specialist inspection may be advisable, particularly for older properties or buildings requiring renovation.
Translation and representation: Document translation, interpretation or a power of attorney may generate additional costs when buying from abroad.
Renovation and furnishing: Repairs, improvements, appliances and furniture can significantly increase the initial budget.
Insurance and utilities: You may need to arrange home insurance and transfer or establish utility contracts after completion.

These costs are not all mandatory in every purchase, but they should be considered where relevant.

6. Ongoing costs of ownership

The financial commitment continues after the purchase. Owners should account for recurring expenses, including:

IBI (Impuesto sobre Bienes Inmuebles): Annual municipal property tax.
Community fees: Contributions towards shared areas and building maintenance where the property forms part of a community of owners.
Utilities and services: Electricity, water, internet and other household services.
Insurance and maintenance: Cover, routine upkeep and unexpected repairs.
Tax obligations: These depend on whether you are a Spanish tax resident, a non-resident owner, or someone who rents out the property.

If you intend to rent out the property, additional management costs, rental-related taxes and any applicable licensing or registration requirements must also be considered.

BUYER’S CHEAT SHEET

Spanish property terms worth knowing

You don’t need to memorize these. But when you’re buying property in Spain, you’ll come across them sooner or later.

Nota simple

A report from the Registro de la Propiedad showing key registered information about a property, including who owns it and whether there are registered mortgages, embargoes or other charges or restrictions.

It can also provide information relevant to community fees and IBI, as well as certain registered property and building information.

Why it matters: It is one of the first documents to look at when checking a property before committing to the purchase.

Catastro

The Spanish Cadaster, which records information about the physical and cadastral characteristics of properties.

The Catastro and the Registro de la Propiedad are different systems, so the information should correspond where appropriate.

Why it matters: Comparing the cadastral information with the registered and physical property can reveal discrepancies that need to be investigated.

Valor de referencia

The reference value assigned to a property by the Dirección General del Catastro.

For ITP and AJD purposes, when a reference value exists, it generally forms the starting point for the taxable base. If the declared value, agreed price or consideration is higher, the higher amount is used instead.

Why it matters: The amount you pay for a property and the value used to calculate certain taxes are not necessarily the same number.

IBI

Impuesto sobre Bienes Inmuebles — the annual local property tax.

The person who owns the property on 1 January is generally the taxpayer for that year’s IBI. If the property is sold during the year, the seller normally pays the municipality, but the amount may be apportioned between buyer and seller according to their respective periods of ownership, unless the parties agree otherwise.

Why it matters: When buying an existing property, the payment status and the allocation of the current year’s IBI should be checked as part of the transaction.

Comunidad de propietarios

Similar to a condo association (residents’ association).

You’ll normally pay regular condo fees (cuotas de comunidad) toward the maintenance of shared areas such as pools, gardens, elevators, entrances and other common facilities. It’s also important to check whether the current owner is up to date with these payments and whether the association has approved any special assessments (derramas) for major or unexpected expenses.

Look for:
Condo fees · Outstanding payments · Special assessments · Community rules

Why it matters: Before buying, you want to know whether community payments are up to date and whether significant works or extraordinary charges are pending.

ITP

Impuesto sobre Transmisiones Patrimoniales — generally the transfer tax applicable to a resale property.

For property in the Valencian Community in 2026:

9% — general rate for acquisitions of immovable property under €1 million.
11% — where the value of the immovable property or right exceeds €1 million.
8% — reduced rate in certain qualifying circumstances, including some first-home purchases by buyers under 35 who meet the applicable conditions.

The tax base is not necessarily just the agreed purchase price; the valor de referencia rules can be important.

IVA

Value Added Tax (VAT).

A new dwelling purchased from a developer is generally subject to 10% IVA. Certain protected housing can qualify for a 4% rate. Other types of property can be subject to different VAT treatment.

Why it matters: New-build and resale purchases are taxed differently, so you need to establish which tax regime applies before calculating the total cost.

AJD

Actos Jurídicos Documentados — a tax on certain documented legal acts.

In the Valencian Community, from 1 June 2026, the general rate for the residual category is 1.4%. However, specific rates apply in particular situations, including:

0.1% for certain public deeds documenting the acquisition of a habitual residence.
2% for certain property transfers where VAT exemption has been waived.
1.4% in other cases covered by the general category.

Mortgage transactions have their own rules; for qualifying mortgage deeds, the lender is the taxpayer, rather than the buyer.

Contrato de arras

A private preliminary agreement commonly used before completion.

Arras are not legally mandatory, and the exact wording matters. They can operate in different ways. With arras penitenciales, for example, the buyer can withdraw under the agreed conditions by forfeiting the deposit, while the seller who withdraws may have to return twice the amount.

Why it matters: Don’t treat an arras contract as a simple reservation form. Once signed, it creates legal obligations.

Escritura pública

The public deed of sale, normally signed before a notary.

The notary verifies and records important aspects of the transaction, including the parties’ identity and authority, the seller’s title, charges, payment arrangements and other legally relevant information.

After completion and payment of the applicable taxes, the deed can be submitted to the Registro de la Propiedad.

Registro de la Propiedad

The Property Registry.

It records ownership and rights and charges affecting registered property. Registering the purchase is not technically mandatory in every case, but it provides important legal protection to the buyer.

Certificado de eficiencia energética

The energy efficiency certificate provides the property’s energy rating and is part of the documentation involved in a sale.

Why it matters: It is one of the documents you may encounter during the purchase and is among the information/documents addressed in the notarial process.

Derrama

An extraordinary payment requested from owners by the community of propietarios, usually for an expense beyond ordinary community charges — for example, significant building works.

Why it matters: A property with apparently reasonable community fees can have substantial additional costs if major works have been approved.

A few numbers worth remembering

9%
General ITP rate in the Valencian Community under €1 million.

11%
ITP rate where the value of the immovable property or right exceeds €1 million.

10%
General IVA rate for a new dwelling.

1.4%
General AJD rate for the residual category in the Valencian Community from 1 June 2026.

0.1%
AJD rate for certain deeds documenting the acquisition of a habitual residence.

These are general rates, not a calculation of the tax you will personally pay. The applicable rate and taxable base depend on the property, transaction and buyer’s circumstances.

The short version

Nota simple → What’s registered against the property?

Catastro → What does the cadastral record say about it?

Valor de referencia → What value may be relevant for calculating tax?

IBI / Comunidad → Are the property’s ongoing payments up to date?

ITP / IVA / AJD → Which taxes apply to this particular purchase?

Arras → What are you committing to before completion?

Escritura pública → What is formally signed before the notary?

Registro de la Propiedad → Has the new ownership been registered?

Derramas → Are there extraordinary community costs to consider?

You don’t have to work all of this out yourself.

These are the terms you’ll encounter. Our role is to help you understand what they mean, coordinate the appropriate professionals and make sure the right questions are being asked before you commit.