How to Buy Property in Spain: A Step-by-Step Guide
Spain, as a member of the European Union, has a robust title deed conveyance system that is applicable to everyone, whether they are local or foreign buyers. Purchasing real estate is a task that demands knowledge and expertise. Proceeding with professional assistance is essential for ensuring easy transactions of keys and property title deeds. The registry of the property takes 1 to 2 months after you choose your home, depending on the property.
TEKCE Real Estate’s skilled sales agents will assist you in locating the ideal property that meets your needs. The company's experienced property lawyers will manage the due diligence and procedures with you or on your behalf, ensuring legal responsibilities are in order.
There are 8 easy steps to buying real estate in Spain, from finding the right property to getting your title deed.
Here is a detailed, step-by-step guide to the property acquisition process in Spain:
- Listening to Your Wishes and Finding Your Dream Property
- Property Viewing Tour
- Reservation
- KYC & AML Checks
- Signing the Contract
- Getting the NIE number & Opening a Bank Account
- Signing Deed at Notary
- Registering the Title Deed
Buying Property in Spain: Full Timelines and Step-by-Step Process for Off-Plan vs Resale
Below are the step-by-step procedures for purchasing a resale (second-hand) property and an off-plan (new-build) property in Spain.
Buying Resale (Second-hand) Properties
Resale properties generally offer a quicker completion process. After selecting the property, the transaction typically proceeds to the notary stage within 1–2 months.
Listening to Your Wishes and Finding Your Dream Property (1–3 days)
Prepare a wish list and shortlist properties.
Property Viewing Tour (1–3 days)
Visit properties or use the TeleProperty service.
Reservation (Deposit) (1–3 days)
Place a reservation deposit.
KYC & AML Checks (3–15 days)
Complete verification processes.
Signing the Contract (3–15 days)
Sign purchase agreement and pay deposit.
Obtain NIE & Open Bank Account (1–15 days)
Obtain a NIE (foreigner identification number) and open a bank account.
Signing Deed at Notary (15–60 days)
Sign deed and complete payment.
Title Deed Registration (20–30 days)
Registered officially.
Mortgage Note (Resale): If financing is needed, allow at least an extra 30 days between signing the contract and attending the notary, to complete bank valuation and loan approval procedures.
Buying Off-Plan Properties
Off-plan purchases usually take longer, as the timeline depends on construction progress and the issuance of building permits.
Listening to Your Wishes and Finding Your Dream Property (1–3 days)
Prepare a wish list and search new developments.
Property Viewing Tour (1–3 days)
See the development site or visit a model unit.
Reservation (Deposit) (1–3 days)
Sign a reservation contract.
KYC & AML Checks (3–15 days)
Complete the verification processes.
Signing the Contract (3–15 days)
Sign purchase agreement and pay deposit.
Obtain NIE & Open Bank Account (15–30 days)
Required before completion.
Signing Deed at Notary (On Delivery)
Sign deed and complete payment.
Title Deed Registration (20–30 days)
Registered officially.
Mortgage Note (Off-Plan): If you intend to use mortgage financing, the application process should begin at least two months before the notary appointment (handover date) to ensure the funds are available for the final signing.
Overview of Resale and Off-Plan Property Purchases in Spain
Step | Resale Property | Off-Plan Property |
1. Property Search/Project Selection | 1-3 days - Define wish list, shortlist properties | 1-3 days - Select a unit from a new project |
2. Viewing Tour | 1-3 days - In-person or remote viewings | 1-3 days - Site visit or show unit |
3. Reservation & Deposit | 1-3 days - Reservation deposit, possible price negotiation | 1-3 days - Reservation deposit and unit selection |
4. KYC & AML | 3-15 days - Know-Your-Client and Anti–money laundering checks | 3-15 days - Know-Your-Client and Anti–money laundering checks |
5. Contract Signing | 3-15 days - Contrato de Arras, usually 10% payment | 3-15 days - (or +15-30 days if licence pending) |
6. NIE & Bank Account | 1-15 days - Required before completion | 15 - 30 days - Needed for installment and taxes |
7. Signing Deed at Notary | 15-60 days - after contract signing | On delivery/handover date (depends on construction) |
8. Title Deed Registration | 20-30 days after notary signing | 20-30 days after notary signing |
Mortgage Considerations | Add 30 extra days before the notary | Apply at least 2 months before handover |
What are the Required Documents to Buy a Property in Spain?
Buyers should prepare certain documents to finalize the purchase of the property in Spain. These documents are needed to proceed with the transfer of ownership between buyer and seller. Here are documents to buy a real estate in Spain:
- Valid passport of the buyer
- NIE number
- Power of attorney if the procedures will be followed by a representative
- Sales contract
- A statement that there are no encumbrances on the property
Fundamentals of Buying Real Estate in Spain
- Financing the purchase of property: If your dream property’s price exceeds your planned budget, banks in Spain are willing to finance both local and international buyers. Spain has the average interest rates of European Union banks, which are appropriate for long-term mortgages. They provide various mortgage rates. Mortgages in Spain are quite advantageous with low interest rates and flexible payment periods. Interest rates may vary for foreign purchasers as the risk is somewhat higher than for locals.
- Purchasing expenses: There might be additional purchase expenses along with the property’s sales amount. There will be legal fees, one-time or annual taxes, valuation fees, and more. Not to be surprised with unexpected costs, it is essential to calculate all expenses beforehand.
- Buying with Cryptocurrency: Since there isn’t a certain restriction about property purchases with cryptocurrency, buyers can use their crypto assets for it. TEKCE has brought hundreds of crypto-holders with their dream homes on purchases with Bitcoin.
FAQ
How long does it take to buy a property in Spain?The property buying process in Spain usually takes 4 to 8 weeks. This time is from viewing the property to transferring the title deed. The exact time depends on how complex the transaction is, how documents are prepared, and bank procedures.
First, the buyer needs to get an NIE number. Next, the property’s legal status is checked. This checks for any debts, mortgages, or legal issues. This step is called due diligence. During this time, KYC (Know Your Customer) and AML (Anti-Money Laundering) checks are also done.
Bank transfers, payment plans, and mortgage applications can make the process longer. If a mortgage is involved, it usually adds about one extra month.
The availability of notary appointments, the land registry workload, and complete documents affect the speed. If everything goes well, the whole purchase process can be done in 2 to 4 weeks with good planning.
What is the impact of autonomous regions in Spain on real estate processes?In Spain, buying real estate involves different taxes and rules based on the region. For example, the Transfer Tax (ITP) on second-hand homes is 7% in Málaga but 10% in Alicante. Also, local authorities manage building permits, zoning rules, and tourism licenses. So, it is important to research the rules in the area where you want to buy property. If you plan to earn money from short-term rentals, check the laws in your local area and autonomous region.
What is a reservation contract in Spain when buying real estate?When buying property in Spain, the buyer and seller usually sign a contract called a “Contrato de arras.” This contract secures the sale and shows that both sides are serious. At this stage, the buyer pays a deposit. This deposit is usually between €6,000 and €10,000, depending on the property price.
The reservation contract takes the property off the market until the sale deed is signed. It gives the buyer the right to buy the property. The contract includes details about both parties and the property. It also states the agreed price, the payment plan, who pays which costs, and the cancellation terms.
In most cases, if one party cancels the deal after signing the contract, they must pay a penalty. This penalty is equal to the deposit amount. For this reason, it is important to review the contract carefully before signing.
How much deposit to buy a house in Spain?When buying property in Spain, the deposit amount depends on the property type, price, and sales terms. For resale properties, the deposit is usually around €6,000. For off-plan properties, it typically ranges between €3,000 and €25,000. For villas, the deposit is higher and usually falls between €25,000 and €100,000.
For new developments, deposit amounts are generally fixed and not negotiable. For resale properties, the deposit can sometimes be negotiated. The deposit is paid to secure the sale and is clearly stated in the reservation agreement.
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