Buying a home in Spain doesn’t need to be complicated. In fact, the process is quite straightforward and transparent when you know what to expect.
To help you get started, here’s a clear step-by-step guide through the main stages of buying your new home in Spain.
1. Reserve Your Property
Once you’ve found the home that feels right for you, the rst step is to secure it. A reservation agreement conrms the rights of both buyer and seller, while also taking the property o the market in exchange for a deposit. This ensures the home is reserved for you while you arrange payment or nancing.
2. Appoint a lawyer
Having a trusted lawyer by your side makes the process smoother. They will check all the paperwork, ensure the land and licences are in order, and review the developer’s contract. Buying a new-build o-plan is usually more straightforward than purchasing a resale property, which may come with debts or complications.
3. Sign the Private Purchase Contract
Once your lawyer gives the green light, a private purchase contract is drawn up. This outlines the developer’s payment plan and construction timeline. Thanks to consumer protection laws introduced in 2016, developers must also provide bank guarantees to safeguard your payments until completion. These measures have made buying o-plan even safer and more attractive.
4. Final Payment and Handover
Before completing your purchase, you’ll need to obtain a N.I.E. (Foreigner’s Identication Number) – a requirement for all non-Spanish buyers. When construction, landscaping, and communal areas are nished, the developer registers the property and obtains the occupancy licence. At this point, you make your nal payment and receive the keys to your new home.
5. Register Your Home and Set Up Utilities
After completion, your lawyer registers you as the new owner in the Land Registry. You’ll also need to cover legal fees, purchase taxes, and notary costs. Setting up a Spanish bank account will allow you to pay local taxes and arrange direct debits for utilities such as water and electricity.
6. Understand the Taxes and Fees
The exact costs depend on whether you are a Spanish resident and how you intend to use your property (personal use or rental). It’s best to discuss this in advance with your lawyer or accountant. Typical costs include:
▪ VAT (IVA): 10%
▪ Stamp Duty: 1.5%
▪ Land Registry fees: 0.1% – 0.2%
▪ Notary fees: 0.1% – 0.2%
▪ Legal fees: 1% – 2%
Buying in Spain Can Be Simple
With the right guidance, buying a home in Spain is a clear and secure process. Take the time to prepare, get good advice, and enjoy the excitement of becoming the proud owner of your new property in Spain.
