Buying Property in Spain?
Here Is What You Need to Know

Buying property in Spain follows a legal process that is fundamentally different from purchasing in the UK, to give an example. The terminology is different, the searches are different, the taxes are different, and the risks — if the process is not handled correctly — can be severe and long-lasting. This guide sets out every stage of the conveyancing process for a resale property in Spain, so that you know what to expect and what questions to ask before you commit.

A — Before You Start: The Essentials

Step 1 — Instruct an independent lawyer before making any commitment

Do not sign a contract or pay a deposit before speaking to an independent lawyer. At this stage your lawyer will explain their terms, costs, and the likely timescales for your transaction. The lawyer you use should have no commercial or referral relationship with the estate agent marketing the property. If the agent recommends a lawyer, ask yourself: if a problem arises, whose interests will this lawyer protect?

Step 2 — Understand the full purchase costs

Buying property in Spain involves significant costs beyond the purchase price. For resale properties you will pay Transfer Tax (ITP), typically between 7% and 10% of the purchase price depending on the region. New builds attract VAT (IVA) at 10% plus Stamp Duty (AJD). On top of this, budget for Notary fees, Land Registry registration fees, and legal fees. Your lawyer should let you know how he or she charges at the outset so there are no surprises at completion.

Step 3 — Obtain your NIE number and register with the Spanish tax authorities

Every buyer in Spain requires a Número de Identificación de Extranjero (NIE) — Spain’s fiscal identification number for foreign nationals. You will not be able to register your purchase deed nor pay your purchase taxes without one. Your lawyer can assist you with the NIE application process, which can be completed in Spain at a police station or consulate, nor pay your purchase taxes, or through a power of attorney if you cannot attend in person.

Step 4 — Open a Spanish bank account

A Spanish bank account is strongly advisable for managing the financial aspects of the purchase and for handling ongoing outgoings after completion — IBI tax, utility direct debits, community charges, and insurance. Arrange this early in the process. Your lawyer can advise on whether a power of attorney linked to the account would be helpful for managing it remotely.

B — Checking the Property

Step 5 — Do not assume the property is legal

Hundreds of thousands of properties across Spain — particularly in rural Andalucía — have been sold with serious legal problems: lack of a first occupation licence, planning irregularities, undeclared extensions, or buildings registered at a different size from the physical reality.

If problems are identified, the options range from price renegotiation, to demanding that the seller resolves the issues before completion, to obtaining an AFO certificate for properties with planning irregularities. Your lawyer should explain the issues as well as the available paths and their implications.

Step 6 — Check the infrastructure

Before proceeding, visit the property and confirm that it has proper connections to essential services. The following are particularly important for properties in southern Spain:

• Mains sewage connection or a functioning septic tank
• Adequate storm drainage
• A tarmacked access road
• Street lighting and pavement (for urban properties)
• An official, metered water supply
• An official, metered electricity connection

Properties lacking legal connections to these services may face significant remediation costs or legal complications in the future, and their value and saleability are materially affected.

Step 7 — Speak to the neighbours

A brief conversation with neighbouring owners can reveal local issues that would not appear in any formal search: access disputes, planned developments nearby, recurring flooding, unresolved community conflicts, or noise issues. It is a simple step that can save considerable difficulty later.

Step 8 — Review the property documentation

Your lawyer will check and request the key documents relating to the property. For a typical resale property in Spain, these include:

• The nota simple (land registry search) — confirming the registered owner and the property’s legal description and the Land Registry search
• First occupation licence (licencia de primera ocupación) — or an AFO certificate for regularised properties in Andalucía
• Water and electricity installation bulletins
• The libro del edificio (buildings book)
• The 10-year structural guarantee (seguro decenal) where applicable
• Energy Performance Certificate (Certificado de Eficiencia Energética) — required for all sales

C — The Legal Searches

Step 9 — Land Registry search

Your lawyer carries out a search at the Spanish Land Registry (Registro de la Propiedad), obtaining a Nota Simple that confirms the registered owner, verifies that no mortgages, embargoes or other charges are registered against the property, and checks that the registered description corresponds to what is actually being sold. Any major discrepancies between the written description and the physical property should be discussed with you before completion.

Step 10 — Catastro search

The Catastro is Spain’s property cadastre — a government database that records the physical description and tax value of land and buildings. It is managed separately from the Land Registry, and the two do not always agree. Your lawyer checks the catastral reference and description against the title deed to inform you of any mayor discrepancies, for example, a registered surface area that does not match the actual building.

Step 11 — Planning report

The conveyancing process does not involve considering the planning aspects of the property in depth, and if you wish your lawyer could commission an independent planning report on the property to see if any planning issues exist.

In many parts of Spain planning irregularities have occurred, so if you are concerned, or your lawyer spots a major planning problem, such a planning report may be advisable.

Step 12 — Last receipts for outgoings

Your lawyer requests up-to-date payment receipts from the seller for all regular outgoings. This matters because unpaid IBI (property tax) and community charges can pass with the property to the new owner under Spanish law:

• IBI (Impuesto sobre Bienes Inmuebles) — the annual property tax
• Water and electricity bills
• Community fees (if applicable)
• Refuse collection (basura)
• Telephone or broadband (if applicable)

Any arrears identified at this stage should be resolved before completion, either through payment by the seller or through a financial retention from the purchase price.

D — Completion at the Notary

Step 13 — Review the draft Notary deed

Before completion, your lawyer reviews the draft escritura de compraventa (purchase deed) prepared by the Notary. The purpose of this review is to see that the parties are correctly identified, the purchase price is accurately stated, the property description matches what you are buying, and the property is being sold free of all charges and encumbrances. Any major errors or discrepancies at this stage should be corrected before you sign.

Step 14 — Arrange and verify the funds

Your lawyer sets out a clear breakdown of the total funds required for completion — covering the purchase price payable to the vendor, the applicable purchase tax, Notary fees, Land Registry registration costs, and legal fees. Funds are typically transferred by bank transfer or banker’s draft on the day of completion. Everything should be set out in writing in advance with no last-minute surprises.

Step 15 — Non-resident vendor retention

Where the seller is not a Spanish tax resident, Spanish law requires the buyer to withhold 3% of the purchase price and pay it directly to the Spanish Tax Agency (Agencia Tributaria) on the seller’s behalf, as an advance against any capital gains tax liability. Your lawyer handles this process so that the retention is correctly calculated and paid, and that you are protected from any residual liability.

Step 16 — Negotiate financial retentions

Where there are outstanding or uncertain liabilities — unpaid plusvalía (the municipal land value tax), unresolved community arrears, or other pending matters — your lawyer can negotiate appropriate financial retentions from the purchase price at completion. These retentions are held until the outstanding matters are resolved, to protect you from inheriting the seller’s financial obligations.

Step 17 — Independent interpreter at the Notary

If you do not speak Spanish, under Spanish law you need to have an independent interpreter present at the Notary to ensure you fully understand the document you are signing. Vázquez Lawyers arranges this as a matter of course. The interpreter should be genuinely independent — not provided by the other party or the estate agent.

E — After Completion

Step 18 — Registration and tax returns

After completion, the purchase tax return must be filed and the signed deed must be registered at the Land Registry in your name. Your lawyer manages this process and confirms registration once complete. The original registered deed is then forwarded to you. This step is not instantaneous: Land Registry registrations in Spain typically take several weeks.

Step 19 — Transfer of utilities and services

Water, electricity, and other services must be transferred into your name following completion. Your lawyer guides you through the changeover process. Follow up to check that the transfers have been completed correctly and that direct debits are set up in your name.

Step 20 — Make a Spanish will and protect your investment

Once you own property in Spain, making a Spanish Will is one of the most important steps you can take for your own peace of mind and for your beneficiaries. Spanish inheritance law differs significantly from UK law and other legal systems: without a properly drafted Spanish Will, your heirs may face a more complex, expensive and time-consuming inheritance process. Vázquez Lawyers can prepare a Spanish Will and other legal systems for you at any time, if you are a non-resident.

You should also appoint a fiscal representative to manage your ongoing Spanish tax obligations if you are a non-resident property owner, and arrange adequate buildings insurance from the date of completion.

A Note on Building Surveys in Spain

Unlike in the UK for example, it is not standard practice in Spain to commission a structural or building survey before purchasing a property. This creates a real and underappreciated risk, particularly for older properties or those that have been extended or modified over the years. You should therefor consider the physical condition of the property carefully before proceeding, and Vázquez Lawyers can assist you to commission an independent technical report from an architect if you wish.