How to buy a property in Spain as a foreigner: step by step

Buying a property is one of the biggest moments in many people's lives. In this article, we present you with a detailed guide of the steps you should follow when buying a property in Spain. As we are aware that you may have some queries, we want to offer you the information you need so you are prepared when making this investment. From searching for the ideal property to signing the purchase contract, we provide you with a detailed overview of the entire process.

Prepare the required documents

The only compulsory document you will need to purchase a property as a foreigner in Spain is the NIE (Foreigners’ Identity Number). The NIE is needed whether you are from the European Union or outside of the EU, and whether you are a resident or not. You can find out how to obtain your NIE in our article about what is the NIE and how to obtain it. Although it isn't mandatory, we also recommend opening a bank account in Spain. We recommend you start these formalities as soon as possible.

Additionally, if you don’t have a good grasp of Spanish, we advise you to look for a specialist to translate all the documents you will need to check throughout the purchase process.

Set your budget

This should be the first step in the process of buying your new home. Setting the budget you have available will help you to search more specifically and successfully. It is about calculating what property you could buy, taking into account your savings, your income and possibilities of accessing finance.

If you can purchase the property in cash, you will need the total cost of the property plus 10% extra to cover the costs of the purchase. If, on the other hand, you need to take out a mortgage, you should have approximately 30% of the value of the property (20% for the deposit and 10% for costs and taxes). Additionally, it is vital that you consider the monthly and yearly costs that you will have to pay as a property owner. Experts recommend that your monthly expenses don’t exceed 35% of your income.

It is important to be realistic with your budget so you can handle the expenses comfortably and avoid taking any unnecessary risks. Once you have established the amount you have available, start searching for your ideal property.

Define the property you are searching for

What are the essential characteristics?

Once you have set your budget, decide what type of property you would like to buy: chalet, semi-detached, flat, etc.

Additionally, we advise you to create a list of all the characteristics that you would like your new property to have, such as the number of bedrooms, swimming pool, garage, terrace, etc. Write this list in order of priorities, determining which ones are essentials for you. Once again, you have to be realistic and know that the property that matches your budget may not fulfil all the characteristics you would like. The more features, the higher the price will be.

Also think about whether you would like to buy a new-build property or a second-hand property. In general, new-build properties are more sustainable but they are also more expensive. On the other hand, second-hand properties are more affordable but can require some refurbishment.

What area do you want to live in?

It is important to choose an area that meets your needs and your lifestyle. Think about which factors are important for you in your everyday life, such as proximity to work, your family, supermarkets, schools, etc. Think about whether you would like to live in a big city or in a smaller town. This may also depend on the type of property you want to buy. In general, detached and larger houses are found on the outskirts of the city, while living in a flat is more common in the centre. As you can see, your budget will accompany you throughout the process, since the type of property and area you choose will also restrict this figure.

If you don’t have an area in mind and you would like to know which neighbourhoods best suit your lifestyle, we advise you to use our page Find your place in Spain. Here, you will be able to include filters, such as the climate or population, and receive a list of areas that could be perfect for you.

Locate the properties you are interested in

Once you are clear on your search criteria, it's time to search for properties. To do so, use our property search tool. Here, you will be able to include the area you desire and as many filters as you like to make your search more specific. If you want to know how to take maximum advantage of the options we offer you, for example, how to draw your area on the map or receive properties by email, we recommend our article on how to find your ideal property with thinkSPAIN.

It is also advisable to find out about the property market situation in the area in which you are interested. Research the market price of properties with similar characteristics to yours in that area and compare the offers.

View the properties

When you have located several properties you are interested in, contact the seller, either a private individual or an estate agent. This will enable you to find out more details about the property and agree a time to view it.

We recommend you go to these viewings prepared and inspect the property in great detail:

• Enter all the rooms and make a note of the small details, like wardrobes, doors and windows.
• Check whether it is noisy and if you can hear the neighbours, bars or surroundings.
• Bear in mind the orientation of the property to know if it is light and find out what time it gets the sunlight. A property with little natural light may mean higher electricity bills.
• Check the condition of the building and communal areas. Communal areas that are in poor condition may mean you have to pay contributions later.
• Check the condition of the electrical installations and other fixed installations.
• Make notes and ask all the questions you think are necessary. Even though queries can arise after the viewing, try to think about what you would like to ask before attending the viewing so you don’t come home with unanswered questions.

If you don’t know the area, research the neighbourhood thoroughly. Visit the neighbourhood at different times of the day, calculate the distance to services that are important to you, such as schools or health centres, explore whether it is well communicated, find out if it is a safe neighbourhood, etc.

If you are going to purchase the property from your home country, it is highly recommended that you plan a trip to Spain to visit that property. Moreover, if you are interested in several properties, try to arrange all of those viewings when you are going to be in Spain. We explain more about this in our article Why you should book a property viewing trip and how to prepare for it.

Find out about the status of the property

Finding out about the administrative status of the property is vital. You can request a ‘nota simple’ (property report) at the Spanish Land Registry to check the property is free of charges, distraints or mortgages, and that the seller is the genuine owner. You can also ask for other documents like the energy certificate or the payment of the IBI (property tax). To find out which documents enable you to find out about the status of the property, we recommend you read our article 10 documents you should ask for before buying a property.

Make an offer

If you are sure and everything is in order with regard to the condition of the property, it’s time to make an offer and negotiate the price. Here are some tips about how to negotiate a good price. If you reach an agreement with the seller, the next step will be to sign a deposit contract (known as ‘contrato de arras’) to reserve the property.

Reserving the property with a deposit contract (contrato de arras)

Once an agreement has been reached between both parties, the deposit contract or ‘contrato de arras’ will be signed to formalise the purchase commitment. At this time, the buyer must pay a negotiated amount, normally 10% of the property price, as a down payment to reserve the property. This grants the buyer time to look for a mortgage or complete other formalities without anyone else being able to buy the property. Generally, penalties are involved if either of the two parties breaches the contract.

The deposit contract should include:

• The price of the property
• The down payment amount
• The maximum deadline by which the purchase contract must be signed
• The personal details of the buyer and seller
• Information about the property

Remember to check all the documents about the condition of the property that we have mentioned before signing the deposit contract.

Start the search for financing

As happens with most buyers, you usually need to take out a mortgage to finance the purchase of your property. This is one of the most difficult moments, so we recommend collecting information from different banks so you can choose the most suitable one for you. If you are purchasing a property through an estate agent, the agency is likely to have specialists that can negotiate the best conditions for your mortgage. This is a much simpler solution.

To grant you the mortgage, the bank will do a valuation of the property and finance it, normally up to a maximum of 80% of the property’s value. As we mentioned in the previous section, you will need to have saved around 30% of the purchase price in order to be granted a mortgage. The bank will also take into account other aspects such as whether you have a stable income or the existence of other debts.

If you are purchasing the property without being a Spanish resident, you can find more information on mortgages for non-residents.

Sign for the purchase of the property in front of a notary

This will be the final step. Once you have been granted the mortgage, you just need to choose a date and sign the purchase deeds in front of the notary. Check all the documents that the seller will provide in the purchase and read the property deeds carefully. If everything is correct, sign and the property will be yours!

Register the property and pay the taxes

With the purchase deeds already signed, you will be able to register your property with the Land Registry in Spain. This process will make the change of owner of the property official and protect your rights as an owner. You can do this yourself or do it through an agent (‘gestoria’). We tell you more about how to do it in our article How to and why register a property in the Land Registry.

Additionally, you will have to pay different taxes that correspond to you as the buyer. Here we explain what these taxes are and the deadlines for paying them.

Move into your new home!

Now you have completed all the formalities, all that’s left to do is enjoy your new home. If you want to make sure you don’t forget anything in the move, you can read our moving checklist.