15.10.2024 
Spain is not only a country of sunshine, sea, and rich culture, but also an excellent place to invest in real estate. The buying process for foreigners is relatively straightforward but requires knowledge of local specifics. In this guide, we will explain where to start and how to properly prepare for purchasing property in Spain.
Can a foreigner buy property in Spain?
Yes, foreigners can purchase real estate in Spain without any restrictions. This applies to citizens of any country, regardless of their place of residence. However, there are a few mandatory steps that must be completed, which we will discuss below.
Where to start?
1. Define your purpose for buying
Before beginning, it's important to understand why you are purchasing property:
- For personal use: vacation or relocation.
- For rental income: investment.
- To obtain residency.
Your objective will influence your choice of property, location, and associated costs.
2. Obtain a Foreigner Identification Number (NIE)
This is the first and mandatory step. The NIE (Número de Identificación de Extranjero) is an identification number required for all legal and financial operations in Spain, including purchasing real estate.
How to obtain an NIE?
- In Spain: through local police stations or the "Oficina de Extranjería".
- Outside Spain: through the Spanish consulate in your country.
To apply, you will need:
- Passport (with a copy).
- Completed EX-15 form.
- Proof of payment for the fee (Modelo 790 Código 012).
The process may take several weeks, so it's best to apply in advance.
3. Open a bank account in Spain
Although it is possible to buy property using a foreign bank account, opening an account in a Spanish bank will significantly simplify the process. A local account allows you to:
- Make payments (taxes, utility bills).
- Manage finances while living in Spain.
To open a bank account, you will need:
- Passport.
- NIE (recommended).
- Proof of funds (as required by the bank).
How to find property?
Spain offers a diverse real estate market, ranging from cozy city apartments to luxury villas on the coast. The main ways to search for property include:
- Online platforms: Idealista, Fotocasa, Habitaclia – popular real estate websites.
- Real estate agencies: can help find properties and arrange viewings.
- Private sellers: interesting options may be found through local ads.
Tip: If the price seems too low, be cautious. There may be hidden issues, such as outstanding debts or illegal occupants. Consider verifying the property before purchase with professional assistance.
What documents are needed for the purchase?
The process of buying property in Spain as a foreigner does not require extensive documentation. You will need:
- Passport.
- Foreigner Identification Number (NIE).
- Bank account (recommended).
- Proof of financial solvency (in some cases, such as for large transactions).
What to consider when buying?
1. Legal status of the property
It is essential to check whether the property has any outstanding debts, encumbrances, or legal issues. Hiring a lawyer is recommended, as they can request a property registry report. You may also use document preparation services.
2. Taxes and fees
When purchasing property in Spain, the following taxes and fees apply:
- Property transfer tax (for second-hand properties) or VAT (for new properties).
- Stamp duty (for new properties).
- Notary and registration fees.
3. Utility and maintenance costs
Before purchasing, check the expected monthly expenses, including utility bills and community fees.
4. Location
Consider the convenience of the area: proximity to transport, beaches, and infrastructure. If your goal is rental income, research the demand in the region.
Signing the contract
Once you find the right property, the first step is to sign an arras contract. This is a preliminary agreement outlining the main terms of the transaction. The buyer pays a deposit (usually 10% of the price), and the seller agrees to withdraw the property from the market.
Important: If the buyer withdraws, the deposit is non-refundable. If the seller withdraws, they must return double the deposit amount.
Finalizing the purchase
At the final stage, the main contract is signed before a notary. After verifying the documents and transferring the funds, you officially become the property owner.
Useful tips
- Don’t rush: Make sure you fully understand the terms before signing any contracts.
- Hire a lawyer: An independent lawyer ensures the transaction is safe.
- Consider additional costs: Total expenses can range from 10–15% of the property price.
