Essential document checklist for buying property in Spain

Purchasing a property is always a multifaceted task that goes beyond just finding the ideal home. Once you've identified your home, it's crucial to ensure you have all the necessary documents in order to complete the purchase. Both the seller and buyer play key roles in this process, with each party responsible for specific documentation. This guide will help you understand the essential documents required at each stage of the process and offer advice to make your property-buying experience in Spain much smoother.

NIE: The essential document for buying a property in Spain as a foreigner

The only document required to purchase a property as a foreigner in Spain (in legal terms) is the NIE (Número de Identificación de Extranjero). This is a unique identification number for foreigners. The NIE is needed when buying a property, whether you are from the European Union or outside the EU, and whether you are a resident or not. To apply for your NIE, you will need the following documents:

• Completed EX-15 application form
• Original and copy of valid passport
• Two recent passport-size photos (if applying in Spain)
• Documentation justifying the request (e.g., pre-contract for property)
• Form 790, code 12, and payment of corresponding fee (if applying in Spain)
• Notarised power of attorney (if using a representative)

If you're not a Spanish resident, opening a Spanish bank account is highly advisable. This makes it easier to manage direct debits for taxes and utility expenses. Also, if your income is not in Euros, you are encouraged to open a Spanish bank account. Especially if you plan to take out a Spanish mortgage. To do this, you will need to provide:

• Valid passport or national ID card
• NIE number
• Proof of address outside of Spain (e.g., utility bill, bank statement)
• Certificate of Non-Residence (Certificado de No Residente)
• Proof of employment status or source of income (e.g. payslips, tax returns)
• Minimum initial deposit (may be required by some banks)

Key documents you need before purchasing your Spanish property

Due diligence and legal checks are essential. Engage your qualified Spanish lawyer to conduct thorough investigations. This includes verifying the property's legal status at the Land Registry, ensuring it is free of debts or encumbrances, and confirming compliance with planning regulations. Your lawyer will also check for outstanding taxes, community fees, and potential legal disputes. This crucial step protects you and your investment from unforeseen issues and ensures a secure property transaction. The seller will need to provide the following documents to ensure you are purchasing a legal property:

• Nota simple (Property Registry Extract): To verify ownership and check for encumbrances
• Title deed (Escritura Pública): To confirm the seller's legal ownership
• Catastro information: Cadastral reference number
• Building licences and permits (Licencia de pimera ocupación): To ensure legality of construction
• Certificate of completion (Certificado de fin de obra): For recent construction.
• Certificate of habitability (Cédula de Habitabilidad): To confirm the property is legally habitable
• Receipts for Impuesto sobre Bienes Inmuebles (IBI): To check for up-to-date payments
• Community of owners' documentation (if applicable): Community bylaws (estatutos de la comunidad) and certificate of no outstanding fees
• Recent utility bills: To verify payment status
• Energy efficiency certificate
• DAFO certificate (Declaración de Asimilación al Régimen de Fuera de Ordenación, if applicable, for rural properties): A certificate clarifying the status and legality of the property, especially relevant for properties on rustic land.
• ITE certificate (only applicable for buildings over 45 years old): To confirm structural integrity
• Certificate of outstanding mortgage debt (if applicable): If the seller has a mortgage

Documents you will need when applying for a Spanish mortgage

If you are financing your Spanish property with a mortgage, begin by gathering the necessary documentation and start approaching Spanish banks or mortgage brokers. Be prepared for a thorough evaluation of your financial situation, as Spanish banks are typically conservative. Once approved, the bank will conduct a property valuation, and your lawyer will review the mortgage contract to ensure your interests are protected.

• Personal identification: Valid passport and NIE
• Proof of income:
  • Payslips (last 3-6 months)
  • Tax returns (potentially last 3 years)
  • Bank statements (last 3-12 months)
  • Employment contract or letter from employer
  • For self-employed: Corporate tax returns, business account bank statements, accountant's letter
  • For retired: Proof of pension payments
• Existing debts: Documentation of other loans or financial commitments
• Proof of funds: Evidence of down payment and associated costs
• Property documents:
  • Earnest money contract (contrato de arras) or reservation contract
  • Property valuation certificate (tasación): Here you can see an example of a valuation.
  • Land registry note (Nota Simple)
  • Formal purchase contract (Contrato de compra de la vivienda)
• Other documents:
  • Recent credit report
  • Certificate confirming non-residency in Spain (if you are a non-resident)
  • Documentation confirming marital status
  • Tax residence certificate
  • Last three receipts of any recently settled debts (potentially)

Necessary documents when signing the property purchase contract in Spain

The purchase contract or escritura pública in Spain is a notarised public deed crucial for legal transactions, especially property sales. The notary ensures legality and understanding before the buyer and seller sign, officially transferring ownership. This document, containing property details and transaction terms, is then registered at the Land Registry, providing legal security and establishing the buyer's official ownership. For your reference, here is an example of a Spanish purchase agreement. It's a fundamental step for validating and recording property transfers in Spain.

• Buyer's documents:
  • Valid ID (Passport and NIE)
  • Documentation confirming marital status
  • Documentation of matrimonial property regime
  • Proof of current residential address
  • Earnest money contract: See example of contrato de arras
  • Proof of payment of the agreed purchase price (e.g., bank transfer confirmation)
  • Power of attorney (if applicable)
  • Debt and charge certificates (if applicable)

• Seller's documents:
  • Valid ID
  • Documentation confirming marital status
  • Proof of current residential address
  • Title deed of the property
  • Energy efficiency certificate
  • Certificate of habitability
  • Receipt for the last IBI payment
  • Certificate of being up to date with community expenses (if applicable)
  • Last utility bills paid
  • DAFO certificate (if applicable)
  • Certificate of outstanding mortgage debt (if applicable)
  • Power of attorney (if applicable)

Required documents for registering your property with the Spanish land registry

Following the signing of the escritura pública, the next stage involves registering your property at the land registry (Registro de la Propiedad). This crucial step officially records your ownership, making it public knowledge and providing legal protection against claims. Your notary typically facilitates this process by submitting the public deed of sale and paying the associated registration fees. This registration establishes your legal title, confirms the property's status, and ensures that any future transactions are properly recorded.

• Notarised copy of the public deed of sale (Escritura Pública de Compraventa)
• Self-assessment form confirming payment of the Property Transfer Tax (ITP) or Value Added Tax (VAT)
• Proof of payment of the municipal capital gains tax (plusvalía municipal)
• Buyer's identification documents (NIE and Passport)

Important considerations for foreign buyers in Spain

• Official translation of documents: Any documents not in Spanish will need to be officially translated by a certified translator.
• Legalisation or apostille of documents: Depending on the country of origin, documents may need to be legalised or apostilled to be valid in Spain.

This checklist, although detailed, is a general guide, and specific requirements can vary depending on the autonomous region in Spain, the specific property, your individual circumstances, and the financial institution involved. Being well-prepared with the right documents and advice can ensure a smooth transaction and safeguard your investment. When you decide to buy a property in Spain, we highly recommend you consult a qualified lawyer specialising in Spanish property law. This will ensure that you have all the necessary documentation for your specific situation. Browse through our directory if you are looking for a legal expert to assist you with your Spanish property purchase.