4 things to consider when buying a home in Spain

Buying a home in Spain is one of the most significant decisions you will make. It is an exciting process, but it can also feel overwhelming — particularly if you are navigating an unfamiliar legal system, a new language, and a market that works differently from your own.

This guide outlines four key areas to consider before and during your search, so you can move forward with confidence.

1. The property and location

Your choice of property type and location are closely linked decisions. The type of home you buy shapes your costs, lifestyle, and obligations — while its location determines everything from daily convenience to long-term value. A useful starting point is to prioritise what matters most to you: proximity to the coast, year-round living, rental potential, or long-term investment. This will help you narrow both the property type and the location at the same time.

Choosing the right property type

Apartments (pisos) are among the most popular choices for international buyers, particularly in coastal cities and resort areas. As an owner, you automatically become a member of the residents' association (comunidad de propietarios) and pay community fees (gastos de comunidad) for shared maintenance — the more facilities a building has, the higher those fees tend to be. Ask your lawyer to request the minutes from the community's most recent AGM, as this gives you a clear picture of the building's finances and any planned expenditure. For a full explanation of how residents' associations work, read our guide to what a community of owners is in Spain.

Townhouses (adosados/pareados) offer more space than an apartment at a lower price than a detached villa. Shared walls can mean less privacy, and community fees may apply depending on the development. Detached villas offer the most space and independence, though properties within complexes with shared facilities will also carry community fees.

Villas are one of the most sought-after property types in Spain, particularly among international buyers looking for space, privacy, and outdoor living. A private pool and garden are common features, though these come with higher maintenance costs. If the villa forms part of a complex with shared facilities, community fees will also apply.

New build and off-plan purchases can offer competitive pricing and the chance to customise finishes, but completion delays are not uncommon. Ensure stage payments are protected by a bank guarantee and that the developer holds all required licences. New builds are subject to VAT (IVA at 10%) rather than transfer tax, which affects your total purchase cost.

Rural properties (fincas/casas rurales) appeal to buyers seeking space and tranquillity, but they require particularly careful legal checks. Rural land classification and building regulations are complex, mains water and sewage are not guaranteed, and internet connectivity can be limited. Specialist legal advice is essential.

Choosing the right location

Spain is an extraordinarily diverse country, and price varies significantly from one area to another. Beyond budget, there are several practical factors worth thinking through: proximity to international airports with good connections to Europe, access to healthcare, which is generally stronger in urban and coastal areas than rural locations, and climate, which varies considerably from north to south and coast to interior.

Some areas have well-established international communities, which can be reassuring for first-time buyers. The Costa Blanca and Costa del Sol in Andalucía are particularly popular with British buyers, while the Balearic Islands and the Valencian Community attract many German buyers. Other parts of Spain — Galicia, Cantabria, Catalonia — offer a more immersive local experience.

Wherever you are looking, your lawyer should verify the planning status of the land. In Spain, land is classified as suelo urbano (development permitted) or suelo rústico (building rights heavily restricted). Unlicensed extensions and incorrectly classified land are among the most common legal problems foreign buyers encounter. It is also worth checking whether any local development plans could affect the property's value or surroundings in the future.

2. The legal and financial process

Understanding what the buying process involves — and preparing for it in advance — will save you time, reduce stress, and protect you from the most common risks.

Documents and registrations

The NIE (Número de Identidad de Extranjero) is a tax identification number required for any financial transaction in Spain, including a property purchase. Both EU and non-EU buyers need one — apply as early as possible, as the process takes time. For a detailed explanation, read our guide to what is a NIE and how do I get one. If you are a non-EU buyer planning to become a resident, you will also need a TIE — see our guide to how to get your TIE.

Once you have your NIE, you can open a Spanish bank account — required for your mortgage application and for paying purchase taxes and fees. Many foreign buyers also choose to grant power of attorney (poder notarial) to their lawyer, allowing them to complete the purchase without being physically present in Spain. If the power of attorney is signed outside Spain, it will need to be apostilled. Discuss this option with your lawyer early if you think you may need it.

The buying process: from offer to completion

Once you have found a property, the first formal step is the contrato de arras — a private purchase contract that sets out the agreed price and terms, and requires a deposit of around 10%. If you withdraw, you lose the deposit; if the seller withdraws, they must return double. For a full explanation, read our guide to what is the contrato de arras in Spain.

Before signing any contract, your lawyer should carry out thorough due diligence. This legal work is not optional — it is what protects you from the most common and costly mistakes. For a full list of what to request, read our guide to the documents you should ask for before buying a property in Spain. It should cover:

• Verifying the land registry entry and confirming there are no outstanding debts or encumbrances. In Spain, certain debts — such as unpaid community fees or IBI — can attach to the property rather than the previous owner, making them your responsibility on purchase
• Checking that the cadastral record is consistent with the land registry entry. Discrepancies are not uncommon and can complicate the sale
• Confirming the built size matches the registered size. Unlicensed extensions are common in Spain and can be costly to resolve
• Verifying that the property holds a valid habitation certificate (cédula de habitabilidad or licencia de primera ocupación). Without this, the property cannot legally be connected to utilities or used as a residence
• Checking the planning status of the land and confirming all construction has the correct licences

For older or rural properties, commissioning an independent structural survey is also strongly advisable. Unlike in the UK, surveys are not standard in Spain — but they can uncover issues not visible during a viewing and may give you grounds to renegotiate the price.

Completion takes place before a Spanish notary, where the escritura pública (public title deed) is signed, the remaining funds are transferred, and the keys are handed over. From offer to completion typically takes one to three months for a resale property, though delays are common, particularly when mortgages or legal issues are involved.

In Spain, property listings are often non-exclusive, meaning the same property may appear with multiple agencies at slightly different prices — this is normal. A good agent will guide you through the local market, but their primary obligation is to the seller. For guidance on what to look for, read our guide to working with Spanish estate agents.

Mortgages and currency

Many Spanish banks offer mortgage products for non-resident buyers, though you can typically borrow up to 70% of the property’s value — meaning a minimum deposit of 30%, plus funds for taxes and fees. Mortgages are available on fixed, variable, and mixed rate terms. For a guide to the options and key terminology, read our articles on fixed, variable and mixed mortgages in Spain and our Spanish mortgage glossary.

If your savings are held in sterling or another non-euro currency, exchange rate movements can significantly affect the true cost of your purchase. A 5% movement on a €300,000 purchase changes your cost by €15,000 — often more than your legal fees. Many buyers use forward contracts to lock in an exchange rate in advance. Speaking to a currency specialist before transferring large sums is strongly advisable.

3. The costs involved

The purchase price is only part of the financial picture. As a general guide, budget for 10–15% on top of the purchase price to cover all taxes and purchase costs.

Upfront purchase costs

• Property transfer tax (ITP): typically 6–10% for resale properties, varying by region
• VAT (IVA at 10%) and stamp duty (AJD at 0.75–1.5%): apply to new build purchases instead of ITP
• Notary and land registry fees: approximately 0.5% in total
• Legal fees: variable, but a necessary investment

Ongoing ownership costs

For a full breakdown of recurring costs, read our guide to the fixed costs of owning a property in Spain. These typically include community fees, annual IBI property tax, utility bills, and — for non-residents — an annual non-resident income tax return (Modelo 210), even if the property is not rented out. Capital gains tax will also apply if you sell the property in the future.

4. Owning and renting out your property

Once you own a home in Spain, there are several practical considerations that will shape your experience as an owner — whether you plan to use the property yourself, rent it out, or both.

Renting out your property

Short-term holiday rentals are regulated at regional level and the rules have tightened considerably in recent years. In some areas, obtaining a new tourist licence is no longer possible, regardless of the property. In many other popular locations — including parts of the Balearic Islands, Canary Islands, Andalucía, and Catalonia — licences are heavily restricted or subject to moratoriums. Some buildings ban short-term lets through community rules, regardless of local authority permissions. Verify whether a tourist licence can be obtained for the specific property before purchasing with rental income in mind. For a full overview, read our guide to tourist licences for holiday rental properties in Spain.

Rental income from a Spanish property is taxable in Spain regardless of your residency status. Non-residents pay a flat rate of 19% (EU/EEA residents) or 24% (non-EU residents) on gross rental income. For a full overview of your tax obligations as a property owner, read our tax guide for expats in Spain.

Insurance

Fire, water damage, and third-party liability are the key risks every property owner in Spain should be covered for. Building insurance is required by Spanish banks if you take out a mortgage and is strongly advisable in all cases. Contents insurance and liability insurance are particularly important if you have a pool or plan to rent the property out. You can read our guide to home insurance in Spain for more details.

Utilities and infrastructure

Before completing on any property, confirm that electricity, water, and gas (where applicable) are connected and working. For rural properties, check whether water comes from the mains or a private well, and whether the property has mains sewage or a septic tank — both carry different maintenance responsibilities. If you plan to work remotely, check broadband availability in advance, as coverage varies significantly outside urban and coastal areas.

Taking the next step

Taking the time to research thoroughly — from property type and location to legal checks and financing — will make the process smoother and significantly reduce risk.

When you are ready to move forward, explore properties for sale across Spain using our search filters to match your needs, budget, and preferred location.