How to Buy Property in Spain Step by Step (2026)
How to Buy Property in Spain Step by Step (2026)
Buying a home in Spain is straightforward once you know the order of things. The tricky part for most foreign buyers is not the paperwork itself but the differences from home: the notary plays a different role, the preliminary contract works differently, and you need a Spanish tax number before you can sign anything important.
This guide walks you through the process as it usually unfolds on the Costa Blanca and in the Region of Murcia. It is general information, not legal advice. For your own purchase, use an independent lawyer (abogado) and, for tax questions, a tax adviser (asesor fiscal).
Step 1. Set a realistic budget
The asking price is not the final bill. On top of it you pay a purchase tax, notary and Land Registry fees, legal fees and, with a mortgage, valuation and bank costs. As a rough guide, buyers of resale homes typically budget around 10–14% of the price for costs. New builds have a different structure (VAT instead of transfer tax) but a similar total.
Rates are set by each autonomous region: the Comunitat Valenciana (Alicante, Torrevieja, Benidorm, Dénia) and the Región de Murcia have different scales, and both review them from time to time. Our guide to buying costs in Spain goes into the details.
If you need finance, look into it early. Spanish banks do lend to non-residents, usually with a lower loan-to-value than for residents. See our guide to Spanish mortgages for foreigners.
Step 2. Get your NIE
The NIE (Número de Identidad de Extranjero) is your identification number as a foreigner in Spain. You need it to sign the deed, pay the taxes and put utilities in your name. You can apply in Spain with an appointment, at a Spanish consulate in your home country, or through a representative with power of attorney. Appointments can take weeks, so start here. Our guide to the NIE number covers it step by step.
Step 3. Open a Spanish bank account
You can technically buy without one, but a local account makes life much easier: the IBI property tax, community fees, electricity and water are all paid by direct debit. Non-residents open a non-resident account. Expect to show your passport, NIE, proof of where the money comes from and often a non-residence certificate. Anti-money-laundering rules mean banks ask detailed questions about the source of funds, so keep bank statements, sale contracts or payslips at hand.
UK buyers in particular should remember that, since Brexit, they are treated as non-EU citizens for residence purposes — owning a home does not in itself give the right to stay longer than the usual short-stay limit.
Step 4. Choose the property and reserve it
Once you have found the right place, you usually sign a short reservation agreement and pay a small deposit so the owner takes it off the market for a few days or weeks. Use that time for the legal checks. Before paying, make sure the agreement says when the deposit is refunded if a problem comes to light.
Step 5. Due diligence: what gets checked
This is the stage where a lawyer earns their fee:
- Nota simple from the Registro de la Propiedad: owner, size, mortgages, charges and embargoes.
- Paper vs reality: are the enclosed terrace, the pool or the extension recorded in the Land Registry and the Catastro? Mismatches are common.
- Debts: any outstanding mortgage (to be cancelled at completion), unpaid IBI and local charges. Some debts attached to a property can pass to the new owner.
- Community of owners: a certificate from the administrator confirming fees are paid, and ideally recent minutes showing planned works or special levies (derramas).
- Licences and technical documents: an energy performance certificate is compulsory; depending on the region and town, the document confirming the home is fit for habitation is also checked. For rural properties, the planning status deserves a closer look.
- Latest IBI receipt: confirms the cadastral reference and value.
If you plan holiday lets, check before committing that the town hall and the community rules allow them. Regulation has become stricter — see our guide to holiday rentals on the Costa Blanca.
Step 6. The arras contract
With the checks done, you sign the contrato de arras. The most common type is arras penitenciales: the buyer pays a deposit, often around 10% of the price, although this is negotiable. If the buyer walks away, the deposit is lost; if the seller pulls out, they normally have to repay double. The contract sets out the price, the latest completion date, what furniture is included and who pays which costs.
Step 7. Signing at the notary
On completion day, buyer and seller sign the escritura pública de compraventa before a notary, normally chosen by the buyer. The notary checks identities, powers of attorney and the registry status and reads out the deed — but is neutral and does not act for either party. That is why your own lawyer matters. Payment is usually by banker's draft or a transfer confirmed at signing.
If the seller is not tax resident in Spain, the buyer must withhold a percentage of the price (currently 3%) and pay it to the tax office on account of the seller's tax. Your lawyer or the notary will flag this.
You don't have to be there in person. You can grant a power of attorney (poder notarial) to your lawyer or someone you trust. A power signed abroad usually needs an apostille and, if not in Spanish, a sworn translation.
Step 8. Taxes and Land Registry
After signing, the purchase tax must be paid within the legal deadline: ITP (transfer tax) on resale homes, or VAT (IVA) plus stamp duty (AJD) on a new build bought from the developer. The deed is then filed with the Land Registry. Registration is what fully protects your ownership against third parties. A lawyer or gestoría normally handles this.
Step 9. Utilities and notifications
Transfer the electricity, water, gas and internet contracts into your name and set up direct debits from your Spanish account. Tell the community administrator about the change of owner. Also check that the change shows up in the Catastro and in the town hall's IBI records.
Step 10. Ongoing taxes after you buy
| Tax / charge | What it is |
|---|---|
| IBI | annual local property tax |
| Rubbish collection (basura) | local charge, sometimes billed with IBI |
| Community fees | upkeep of shared areas |
| IRNR (non-residents) | imputed income tax if not let, or tax on rental income |
| Wealth tax | only for larger estates; allowances vary by region |
You may also have to report the property or rental income in your country of tax residence. Spain has double taxation treaties with many countries, including the UK, but how they apply to you is a question for a tax adviser.
Common mistakes
- Paying a large deposit before seeing the nota simple.
- Assuming the notary replaces a lawyer.
- Leaving costs out of the budget.
- Buying for holiday lets without confirming a licence is possible.
- Applying for the NIE too late.
Finally, note that Spain abolished the property-based "golden visa" in 2025, so buying a home no longer leads to residence on its own.
Buy with CasaAqui Costa
At https://casaaqui.eu you'll find around 1,660 homes for sale on the Costa Blanca and in the Region of Murcia. We help with the NIE, the bank account, preparing for the notary and translations — and after you buy, we can manage holiday lets and guest care for you. Message us on WhatsApp: +34 652 899 274.