The Property Buying Process in Spain: What Foreign Buyers Should Know

Buying real estate in Spain is a dream for many seeking sun, a relaxed lifestyle, or a safe investment. However, for foreigners, especially those unfamiliar with the Spanish system, the process may seem complex. That’s why I’ve prepared a detailed step-by-step guide explaining how to purchase property on the Costa del Sol – from first contact to receiving the keys.

1. Defining your needs and budget
The first step is to clearly define your preferences: location, type of property, purpose (personal use, rental, or investment), quality standards, and budget. Based on these, I prepare an initial selection of properties that meet the client’s individual expectations.

2. Obtaining a NIE number
The NIE (Número de Identificación de Extranjero) is a mandatory tax identification number for foreigners in Spain. It is required for purchasing property, opening a bank account, or signing a pre-contract. I assist my clients in obtaining this document – either locally or through a power of attorney.

3. Opening a Spanish bank account
A Spanish bank account is required to complete the transaction. I guide clients through the entire process of opening the account, helping them choose the right bank, including the best options for non-residents.

4. Property reservation and preliminary contract
After selecting a property, a reservation or pre-sale agreement (Contrato de Reserva / Contrato de Arras) is signed. It commits both parties until finalization. The buyer typically pays a deposit (usually €6,000–€10,000 or 10% of the price) to secure the transaction.

5. Legal due diligence
At this stage, I cooperate with a legal office that thoroughly examines the legal status of the property: title deeds, absence of debts or encumbrances, building legality, and urban planning compliance. This critical step protects the buyer's interests.

6. Finalizing the transaction – Notarial deed
The transaction is formalized before a notary through the signing of the Escritura Pública. The buyer (or legal representative) makes the final payment and covers notary fees, taxes, and registration costs. Upon signing, ownership is officially transferred and registered.

7. Property registration and utilities
After purchase, the property is registered in the land registry and all utilities and tax records are updated (IBI tax, water, electricity, community administration, etc.). I support clients in handling all post-purchase formalities.

8. After-sales service and advisory
The purchase is only the beginning. I offer complete after-sales support: property management, short- or long-term rental services, investment advice, and assistance with settling in Spain (schools, healthcare, legal translations, etc.).

Purchase costs in Spain
Total transaction costs are usually around 10–13% of the purchase price and include:

Transfer tax (ITP) or VAT (IVA), depending on the property type
Notary and registration fees
Legal services and translations
Bank fees and international transfers
Summary
While buying property on the Costa del Sol follows clear legal rules, it requires precision, knowledge of local procedures, and professional support. As an experienced real estate agent, I provide comprehensive services in Polish, English, and German – ensuring safety and smooth handling of your transaction.