Buying property in Spain as a foreigner is a straightforward and well-regulated process — but it does come with specific legal requirements that every buyer should understand before starting. This guide explains all the key legal requirements, including documents, the role of lawyers and notaries, tax obligations, due-diligence checks, and special rules that apply in certain areas.
NIE Number — Your Essential ID
Every foreign buyer in Spain must obtain an NIE (Número de Identificación de Extranjero). This is your Spanish tax identification number, and it's required at every stage of the buying process.
You can apply for your NIE at a Spanish National Police station, a Spanish consulate in your home country, or through an authorised lawyer with power of attorney. It's best to obtain the NIE early, as it is needed at every stage of the buying process.
Opening a Spanish Bank Account
While not legally mandatory, opening a Spanish bank account is practically essential. Most major Spanish banks offer non-resident accounts and English-speaking staff, making the setup quick and straightforward.
Independent Lawyer (Abogado)
Foreign buyers should always hire an independent, English-speaking lawyer who works exclusively for them. Your lawyer handles all legal checks and protects you from risks. Never rely solely on the seller's or agent's recommended lawyer — independence is essential for your protection.
Signing the Private Contract
Once due diligence begins, buyers usually sign a reservation agreement followed by a Contrato de Arras (deposit contract). This private contract secures the property, defines conditions and timelines, and typically requires a 10% deposit. It legally binds both parties — your lawyer must review the contract before anything is signed or paid.
The Role of the Notary
All property purchases in Spain must be formalised in front of a Spanish notary, a public official who ensures the legality of the transaction. The notary verifies identities, confirms compliance with Spanish law, reads and signs the Title Deed (Escritura de Compraventa), and ensures taxes are paid correctly.
Registering the Property
After signing the deed, your lawyer ensures that the property is formally recorded in your name at the Land Registry (Registro de la Propiedad). This protects your legal ownership and prevents disputes or fraudulent claims. Registration typically completes within a few weeks of the notary signing.
Taxes Foreign Buyers Must Pay
Foreign buyers must comply with several taxes when purchasing property. The specific taxes depend on whether you're buying a new build or resale property.
Ongoing Tax Obligations
Once you own the property, you'll have ongoing tax obligations including IBI (local council property tax), community fees, non-resident income tax, and rental income tax if you rent the property. Your lawyer or a fiscal representative can help with annual filings.
Mortgage Requirements
Foreigners can easily apply for Spanish mortgages. Non-residents typically get 60-70% loan-to-value, while residents can access up to 80%. Mortgages in Spain are regulated and secure, but you should compare offers before committing.
Special Cases and Restrictions
Foreigners can generally buy property anywhere in Spain, but a few exceptions apply. Your lawyer will check all special cases during due diligence.
Power of Attorney (Optional)
Foreign buyers who are not in Spain full-time often sign a Power of Attorney (POA) allowing their lawyer to act on their behalf. This simplifies the process and avoids unnecessary travel.
A Secure and Transparent Process
Spain's property buying process is well-regulated and provides strong protections for foreign buyers. With an independent lawyer handling due diligence, proper documentation in place, and understanding of tax obligations, you can purchase your Spanish property with complete confidence.