Costa del Sol · Buying in Spain
The complete process from NIE to notary deed, taxes and land registry — explained in plain English
Buying property in Spain is straightforward when you understand the process — but there are more legal steps involved than most international buyers expect, and the sequence matters. Skip or rush any stage and you risk financial loss, delays, or being unable to use the property as intended.
This guide walks through the complete buying process for non-residents purchasing property on the Costa del Sol, in the order the steps actually happen. It covers timelines, costs, and where legal advice is essential at each stage.
A typical resale purchase on the Costa del Sol takes between 6 and 12 weeks from finding a property to signing at the notary. New-build purchases can take longer depending on the development stage. Budget approximately 10–13% of the purchase price on top of the property price to cover all taxes, fees, and costs.
Typical additional costs for a resale property:
New-build properties: VAT (IVA) at 10% + stamp duty (AJD) at 1.2% instead of ITP.
The first step in any Spanish property purchase should be instructing an independent lawyer — one who acts exclusively for you, not for the estate agent or developer. This is not a formality and it is not optional if you want to protect yourself.
Your lawyer will guide you through every subsequent step, carry out all legal searches, review and negotiate all contracts, and represent you at the notary if you grant a power of attorney. Instructing a lawyer early — before you have found a property — allows them to begin preparatory work, including the NIE application, immediately.
Spain's tax identification number for foreign nationals is required at every stage of the purchase. You cannot sign a contract, pay taxes, or register a property without it. Each buyer needs their own NIE — it cannot be shared.
The NIE can be obtained at a Spanish consulate in your home country, in person at a police station in Spain, or by your lawyer using a power of attorney. The power of attorney route is the most efficient: we handle the entire application without you needing to visit a police station at all.
Allow 2–6 weeks for the NIE depending on the route chosen. Start this process as early as possible — it is the most common cause of transaction delays. See our dedicated NIE Number Guide for full details.
You will need a Spanish bank account to receive mortgage funds (if applicable), make the final payment at the notary (typically by banker's draft), and pay ongoing property taxes and community fees after completion.
Most Spanish banks allow non-residents to open accounts. The process typically takes 1–2 weeks and requires your NIE, passport, and proof of address. Some banks can open accounts for non-residents remotely or via video call — your lawyer can recommend a suitable bank.
Note: you will need the NIE before you can open a Spanish bank account in most cases, which is another reason to start the NIE process as early as possible.
Once your NIE application is underway and you have legal representation in place, you are in a position to search for and make offers on properties. When you find a property you want to buy, your lawyer should be notified immediately — before you pay any money or sign anything.
Verbal offers and informal agreements are not legally binding in Spain. However, paying even a small reservation deposit without having first taken legal advice can create complications. Always ensure your lawyer reviews the terms of any reservation before you commit any funds.
Once an offer is verbally agreed, the typical next step is a reservation contract (contrato de reserva) accompanied by a small deposit — usually €3,000 to €6,000. This takes the property off the market while due diligence is carried out.
The reservation contract should specify: the agreed price, the identity of the parties, the property details, the deadline for signing the private purchase contract, and what happens to the deposit if either party withdraws. Your lawyer should review this document before you sign.
Once the reservation is signed, your lawyer carries out a full legal investigation of the property. This covers the Land Registry title, any mortgages or charges, community fee debts, IBI arrears, planning and building compliance, cadastral data, first occupation licence, and any pending legal proceedings.
This is the stage where problems are identified — and where a good lawyer earns their fee. If serious issues are found, you have the opportunity to renegotiate, require the seller to resolve them, or withdraw before you are contractually committed. See our dedicated Due Diligence Guide for a full breakdown of every check your lawyer should make.
If due diligence is satisfactory, the parties sign a private purchase contract. In Spain, the most common form is the contrato de arras penitenciales under Article 1454 of the Civil Code. Under this contract:
The arras contract sets the completion date (usually 4–8 weeks ahead) and defines all the conditions of the sale. Your lawyer must review and negotiate this contract carefully — it is the document that defines your rights if anything goes wrong.
If you are financing the purchase with a Spanish mortgage, the mortgage application must run in parallel with the due diligence and contract stages. Spanish banks typically lend non-residents up to 60–70% of the property's appraised value, compared to 80% for residents.
You will need to provide income documentation, tax returns, bank statements, and employment confirmation. The bank will commission a formal valuation (tasación) of the property. Once approved, the mortgage offer is tied to the notary appointment — the bank's notary representative attends the same signing.
The mortgage process typically takes 4–8 weeks from application to offer. Start as early as possible to avoid delaying completion.
Completion in Spain takes place at a Spanish notary's office. The buyer, seller (or their legal representatives with powers of attorney), and the bank (if there is a mortgage) all attend. The notary reads the deed, verifies the identity of the parties, and witnesses the signatures.
Payment at the notary is typically made by banker's draft (cheque bancario) drawn on a Spanish bank account. The notary fee is paid at this stage.
If you cannot attend in person, your lawyer can represent you under a power of attorney. Many international buyers complete their Spanish property purchase without ever attending the notary themselves.
Once the deed is signed, you receive a certified copy and the keys are handed over. You are now the owner.
Signing the deed is not the end of the process. Within 30 working days of the deed, the applicable taxes must be paid and the property must be registered in your name at the Land Registry. Your lawyer handles both.
For resale properties, the tax is ITP (Impuesto sobre Transmisiones Patrimoniales) — 7% of the declared purchase price in Andalucía. For new-build properties from a developer, the tax is IVA at 10% plus AJD (Actos Jurídicos Documentados) stamp duty at 1.2%.
After tax payment, the deed is presented to the Land Registry. Registration typically takes 2–8 weeks. Once registered, your title is fully protected and the transaction is complete.
Post-completion, your lawyer should also register you for non-resident income tax (IRNR), update the community of owners with your details, and arrange transfer of utilities into your name.
We guide international buyers through every step of the Spanish buying process — in plain English. Contact us for a free initial consultation and we will explain exactly what your purchase involves.