Buying Property in Spain

Buying Property in Spain: A Complete Guide for Foreigners 2025

Dreaming of a sun-drenched life in Spain? You're not alone. But for many international buyers, the process can seem complex and overwhelming. This guide is here to change that. Consider this your complete, step-by-step roadmap to making your Spanish property dream a reality, covering everything from the initial legal steps to finding the perfect home and getting the keys in your hand.

Why Buying Property in Spain? Your Dream Lifestyle Awaits

Beyond the obvious appeal of over 300 days of sunshine a year, owning property in Spain offers a unique blend of benefits. From the vibrant culture and world-class cuisine to the relaxed pace of life, it’s an investment in your well-being. The Spanish property market has also shown resilience and stability, making it an attractive option for both personal use and long-term investment. Before you dive in, it’s wise to consider your goals: are you looking for a holiday home, a permanent residence, or a rental investment? Clarifying this will guide your entire search.

Can Foreigners Easily Buy Property in Spain?

Absolutely! One of the biggest advantages is that Spain has no restrictions on foreign property ownership, whether you are an EU citizen or not. The process is well-defined and secure. For non-EU investors, Spain also offers a "Golden Visa" program, which grants residency for property investments over €500,000. While the process is clear, it is crucial to have professional guidance to ensure every step is handled correctly, making the journey smooth and secure.

Popular Regions for International Buyers

Spain offers a diverse landscape of regions, each with its unique charm. The Costa del Sol remains the classic choice, famous for its glamorous marinas, world-class golf courses, and bustling social life. For those seeking stunning beaches and excellent value for money, the Costa Blanca is a top contender. And if you’re looking for a taste of authentic Spain with one of the best climates in Europe, the regions of Murcia & the Costa Cálida are fantastic options. Feeling inspired? Explore properties in Spain's most desirable regions.Feedback & RecreateDelete

The Complete 7-Step Buying Process for Foreigners

At Red Rose Property Spain, our goal is to make the buying process simple, transparent, and stress-free. We’ve broken it down into seven clear steps. Follow this checklist to navigate your purchase with confidence and avoid common pitfalls.

Step 1: Secure Your Finances and Set a Budget

Before you start browsing, it's essential to understand the full cost. A good rule of thumb is to budget for an additional 10-15% on top of the property's purchase price to cover taxes and fees. These costs include:

• Property Transfer Tax (ITP): This applies to resale properties and varies by region (typically 7-10%).
• VAT (IVA) & Stamp Duty (AJD): These apply to new build properties, with VAT at 10% and Stamp Duty around 1.2-1.5%.
• Other Fees: Include notary fees, land registry fees, and legal fees.

If you need a mortgage, it's wise to explore options for non-residents early on to get pre-approval.

Step 2: Get Your Essential Spanish Paperwork (NIE)

Every foreigner who buys property in Spain needs an NIE number (Número de Identificación de Extranjero). This is your official identification and tax number, and you cannot complete the purchase without it. You can apply for your NIE at a Spanish consulate in your home country or in person at a police station in Spain. You will also need to open a Spanish bank account to handle the payments for the property, taxes, and utility bills.

Step 3: Find a Trusted Real Estate Agent

Your real estate agent is your most valuable asset in this journey, especially a multilingual one who understands the needs of international buyers. A good agent doesn't just show you properties; they act as your guide, advocate, and local expert. They will help you find the right properties, negotiate the best price, and connect you with trusted lawyers and mortgage advisors. Our dedicated team provides full support from the first search to the final signing. Meet the Red Rose Property Spain team.

Step 4: The Property Search and Viewings

This is the exciting part! Start by defining your key criteria: what are your must-have features? Which locations appeal to you most? What is your ideal property type—a villa, apartment, or townhouse? Once you have a shortlist, your agent can arrange viewings, either in person or virtually. During a viewing, don't be afraid to ask detailed questions about the property, the community, and running costs.

Step 5: Making an Offer and the Reservation Agreement

Once you’ve found your perfect property, you’ll make a formal offer through your agent. If the offer is accepted, the next step is to sign a reservation agreement (contrato de reserva) and pay a small deposit (typically €3,000 - €6,000). This agreement officially takes the property off the market and freezes the price while your lawyer conducts the necessary legal checks.

Step 6: The Private Purchase Contract and Legal Checks

During the reservation period, your lawyer will perform crucial due diligence. This includes checking the Land Registry for debts, verifying ownership, and ensuring all building permits are in order. Once everything is confirmed, you will sign the private purchase contract (contrato de arras). At this stage, you will typically pay a deposit of 10% of the purchase price (less the initial reservation fee).

Step 7: Completion at the Notary and Getting the Keys

The final step is the completion meeting at a public notary's office. All parties—you (or your legal representative), the seller, and representatives from the banks—will be present. The final deed of sale (Escritura de Compraventa) is signed, the final payment is made, and you are officially handed the keys to your new Spanish home. Your lawyer will then register the property in your name at the official Land Registry, completing the process.

Frequently Asked Questions When Buying Property in Spain

What is an NIE number and why do I need it to buy property?

The NIE is a unique identification number for foreigners in Spain. It is mandatory for any major financial transaction, including buying property, opening a bank account, paying taxes, and setting up utility contracts. It is the first legal document you should obtain.

How much are the taxes and fees on top of the property price?

You should budget for approximately 10-15% of the purchase price to cover all taxes and fees. This includes property transfer tax (for resale homes) or VAT (for new builds), plus notary fees, land registry costs, and legal expenses.

Can I get a mortgage in Spain as a non-resident?

Yes, Spanish banks offer mortgages to non-residents, typically covering up to 60-70% of the property's purchase price. It is advisable to seek pre-approval from a bank or mortgage broker before you start your property search.

Do I need a Spanish lawyer to buy a property?

While not legally mandatory, it is highly recommended. An independent lawyer will represent your interests, conduct all necessary legal checks (due diligence) on the property, review contracts, and ensure the entire process is legally sound and secure.

What is the difference between a resale and a new build property?

A resale property is one that has been previously owned. A new build is a brand-new property, often purchased directly from a developer, sometimes off-plan before it is even built. The primary difference for a buyer is the tax structure: resale properties are subject to Transfer Tax (ITP), while new builds are subject to VAT (IVA) and Stamp Duty (AJD).

Buying a home in Spain is an exciting journey, and with the right preparation and guidance, it can be a smooth and rewarding experience. By understanding these key steps, you are already well on your way to turning your dream into a reality. Our multilingual team has helped hundreds of clients navigate this process and is ready to offer complete support, from legal advice to mortgage assistance. Start your search for your dream Spanish home today!

Red Rose Property Spain has now an official Dutch office in the Netherlands.