05.10.2024 
Spain has long been one of the most attractive destinations for real estate purchases: a warm climate, beautiful beaches, and a high quality of life attract buyers from all over the world. But how can a foreigner buy property in this country? We have prepared a step-by-step guide to help you understand the process and avoid mistakes.
Why Spain?
Buying real estate in Spain is not just an opportunity to own a home on the Mediterranean coast but also a real chance to make a profitable investment. The real estate market here is stable, and property prices range from affordable to luxury. New developments offer modern infrastructure, while the secondary market provides a wide selection of cozy houses and apartments.
However, the buying process can be complicated for those unfamiliar with local laws and regulations. Our guide will help you navigate this journey with minimal risks.
Main Steps in Buying Property
1. Define Your Budget
Before starting your property search, it’s important to determine how much you are willing to spend. Consider not only the price of the property but also additional costs:
- Taxes: from 6% to 10%, depending on the region and type of property.
- Notary and registration fees.
- Agency commissions (if applicable).
- Legal and translation services.
Example: when purchasing an apartment worth €300,000 in the Valencia region, additional costs will amount to approximately 12-13% of the price.
2. Obtain a Foreigner’s Tax Identification Number (NIE)
Without an NIE, it is impossible to carry out transactions in Spain. This number is required for all legal and financial operations, including property purchases. The process of obtaining it can take from a few weeks to two months, so it is best to take care of this in advance.
3. Choose the Right Property
Spain offers a wide range of properties, from city apartments to coastal villas. The best platforms for searching include:
- Idealista and Fotocasa – the largest property listing portals.
- Real estate agencies – useful for finding properties not publicly listed.
Be cautious: if the price seems too low, there may be hidden problems. For example, the property might be occupied by illegal tenants. To minimize risks, consider verifying the property before purchase.
4. Sign a Preliminary Contract (arras)
Once you have found a suitable property, a contract known as arras is signed. This agreement sets out the main conditions of the transaction and includes a deposit payment (usually 10% of the property’s price).
Important: If the buyer backs out, they lose the deposit. If the seller backs out, they must return the deposit in double.
5. Prepare the Necessary Documents
Foreign buyers need a minimum set of documents:
- Passport.
- Tax identification number (NIE).
- Bank account (if planning to live in Spain).
All documents are signed before a notary, who ensures the transaction’s legality. You can get assistance with document preparation through document preparation services.
6. Payment and Completion of the Transaction
All payments in Spain are made via bank transfers. After signing the contract before a notary, you will receive the keys to your property. Congratulations, you are now a property owner in Spain!
Useful Tips for Buyers
- Understand the taxes: property taxes depend on the region and type of property. For example:
- Resale properties: ITP tax (6–10% of the price).
- New properties: VAT (10%) + stamp duty (0.5–1.5%).
- Consult a lawyer: a lawyer will check the legal status of the property, ensure there are no debts or encumbrances, and draft the contract.
- Consider annual expenses: after purchasing a property, you will be required to pay an annual property tax (IBI) and utility bills.
Why Is It Worth the Effort?
Buying property in Spain may seem like a complicated process, but it is worth it. You not only become the owner of a home in one of Europe’s most beautiful countries but also gain access to high-quality infrastructure, leisure opportunities, and investment potential.
