Buying Property in Spain as a Non-Resident: Step-by-Step Guide

Step 1: Get Your NIE Number

Before you can buy property in Spain, you need a Número de Identidad de Extranjero (NIE) — the tax identification number assigned to foreigners. Every party to the transaction (including a co-buying spouse or partner) must have their own NIE.

You can apply for a NIE:

• In Spain at a Policía Nacional station or a Foreigners' Office (Oficina de Extranjería). Book an appointment through the Sede Electrónica website. Bring your passport, completed Modelo EX-15 form, and a small fee (around €10).
• At a Spanish consulate in your home country — useful if you want to sort this before travelling. Processing times vary by consulate.
• Via a gestoría or abogado in Spain on your behalf, using a power of attorney.

A NIE is just a number — it does not grant you residency rights. Processing typically takes one to four weeks. Do not sign any binding contracts until all buyers have their NIE.

Step 2: Reserve the Property

Once you have agreed a price with the seller, you will typically sign a reservation contract (contrato de reserva or arras contract) and pay a deposit — usually 1% to 10% of the purchase price.

The most common form is the arras penitenciales contract under Article 1454 of the Civil Code. This is a two-way commitment: if you pull out, you forfeit your deposit; if the seller pulls out, they must return double your deposit. Make sure your reservation agreement specifies this clearly.

Step 3: Due Diligence — Before You Commit

Between signing the reservation and completing at the notary, your lawyer or gestoría should carry out thorough due diligence. The key document here is the nota simple (see our separate guide), but the full checklist includes:

• Nota simple from the Land Registry — confirms the owner, any mortgages, charges, or easements on the property
• IBI receipt (Impuesto sobre Bienes Inmuebles) — confirms property tax is up to date and establishes the catastral reference
• Community fees certificate — confirms no outstanding debts to the comunidad de propietarios
• Cédula de habitabilidad — confirms the property is legally habitable
• Energy performance certificate (certificado de eficiencia energética) — legally required for any sale
• Town planning check — verifies the property has all required licences and is not subject to urban planning orders

Step 4: Sign the Escritura at the Notary

The final purchase contract — the escritura de compraventa — is signed before a Spanish notary (notario). The notary is a neutral public official who verifies identities, confirms the transaction is legal, and records it.

On signing day:

1. The buyer brings certified funds (banker's draft or transfer) for the balance of the purchase price
2. Any existing mortgage on the property is cancelled by the seller
3. Both parties sign the escritura
4. The notary retains the original and issues a first copy to the buyer

If you cannot attend in person, you can give someone a power of attorney (poder notarial) to sign on your behalf. This power of attorney must itself be notarised and, for a document issued outside Spain, apostilled.

Step 5: Pay the Transfer Tax (ITP)

For resale properties (which is most of what non-residents buy), the main tax is Impuesto sobre Transmisiones Patrimoniales (ITP). This is a regional tax, set by the autonomous community where the property sits.

In the Balearic Islands, ITP rates are progressive:

ITP must be paid within 30 working days of signing the escritura, using Modelo 600 submitted to the Balearic tax authority (ATIB). Your gestoría or lawyer will handle this.

For new-build properties purchased from a developer, VAT (IVA) at 10% applies instead of ITP, plus Stamp Duty (Actos Jurídicos Documentados, AJD) at 1.2% in the Balearics.

Step 6: Register at the Land Registry

Once ITP has been paid, the escritura is presented to the Registro de la Propiedad (Land Registry) for registration in the buyer's name. Until this step is complete, ownership is not fully protected against third parties.

Registration typically takes two to six weeks. Your gestoría will present the stamped tax documents and the escritura. You will receive a certificate of registration once complete.

Full Cost Breakdown

After Completion

Once you are the registered owner, set up the following:

• Direct debits for IBI, rubbish tax (basura), and community fees from a Spanish bank account
• Modelo 210 annual non-resident income tax return (even if you do not rent the property out)
• Contents and buildings insurance in your name
• Utility contracts (electricity, water, gas) transferred to your name