How to buy property in Spain: the step-by-step process

The NIE (Número de Identificación de Extranjero) is a mandatory tax identification number for any foreign buyer in Spain. It is required to sign a contract, open a bank account, pay purchase-related taxes, and set up utility contracts. It can be obtained from a national police station in Spain, a Spanish consulate abroad, or via a power of attorney granted to a lawyer, which often avoids a dedicated trip.

Processing time varies depending on where it is requested: from a few days to several weeks depending on demand at the relevant police station or consulate. It is advisable to start this process early, even before a property has been identified.

A Spanish bank account is not strictly required for the purchase itself, but is practically indispensable: it makes it easier to pay the price, notary and agency fees, and later to set up direct debits for utilities (electricity, water, the IBI property tax, community fees). Opening one usually requires the NIE, proof of address, a passport, and sometimes proof of income, with requirements varying by bank.

It is strongly advisable to appoint an independent lawyer (abogado), separate from the estate agency and the seller, specialising in Spanish property law. Their role covers legal due diligence on the property, reviewing or drafting the arras (deposit) contract, coordinating with the notary and, if needed, representing the buyer under power of attorney at signing.

Legal fees for a property transaction generally range between 1% and 1.5% of the purchase price, often with a flat minimum of around 1,500 to 3,000 euros depending on the firm and the complexity of the file, to be confirmed case by case. This cost is separate from the fees and taxes detailed in the guide on acquisition costs.

Once a property has been identified, the buyer makes an offer, often accompanied by a small reservation deposit (a few thousand euros) that temporarily takes the property off the market while the lawyer begins due diligence. This reservation deposit is distinct from the arras contract.

The contrato de arras (deposit contract) is the central contractual step before the notarial deed. It sets out the price, any conditions precedent (such as financing, covered in the financing guide), the planned date for signing the escritura, and the deposit amount, typically 10% of the price. This contract has real legal weight: if the buyer withdraws, the deposit is generally forfeited; if the seller withdraws, they must generally repay double the amount received, unless otherwise agreed (penalty-type arras versus confirmatory arras). The precise wording of these clauses is a key reason to use a lawyer.

Before committing, the lawyer carries out a series of essential checks:

• the nota simple issued by the land registry (Registro de la Propiedad), which identifies the legal owner, describes the property, and lists any charges (cargas) such as mortgages, seizures or easements;
• confirmation that there are no outstanding community fees and that the IBI annual property tax is up to date;
• planning compliance and, for recently built properties or extensions, the existence of a first occupation licence (licencia de primera ocupación) or equivalent, often required to connect utilities and sometimes to obtain financing;
• for properties within a community, the bylaws, internal rules, and minutes of recent general meetings;
• for off-plan purchases, additional specific checks detailed in the guide on new-build versus resale properties.

This stage helps secure the transaction and, where an irregularity is found, allows the price or conditions to be renegotiated.

Signing the escritura de compraventa before a Spanish notary formalises the transfer of ownership. Buyer and seller (or their representatives under power of attorney) sign in the notary's presence; the notary checks identities, reads out the deed, and confirms that payment has been made, typically by certified banker's draft or bank transfer, with proof presented on the day.

The balance of the price, net of the deposit already paid, is settled at this point, along with notary fees. Acquisition taxes (ITP for resale properties, VAT and AJD for new builds) and other associated costs are detailed in the guide on costs and taxes; it is worth budgeting for these amounts in advance rather than on completion day.

After signing, the notary hands over a simple copy of the deed and forwards the information to the land registry for final registration.

The signed escritura must then be submitted to the land registry for final registration in the new owner's name, once the corresponding taxes have been paid. This process is generally handled by the lawyer or by a gestoría (administrative management firm) appointed for the purpose.

Registration makes ownership enforceable against third parties and fully secures the property, even though the buyer is legally the owner from the moment the escritura is signed. Registration timeframes vary between registries, generally taking a few weeks to two or three months.

Once the buyer becomes the owner, several steps should follow quickly: transferring utility contracts (electricity, water, and where applicable gas and the household waste tax, often called basura) into the new owner's name, setting up direct debits for the IBI tax and community fees, and notifying the owners' association (comunidad de propietarios) of the change of ownership.

These steps are generally handled, in whole or in part, by the gestoría or lawyer, but it is worth the buyer personally checking that meters and contracts are indeed registered in their name within the weeks following the purchase, to avoid any service interruption or billing under the previous owner's name.