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Buying property in Spain as a foreigner

Any foreigner can buy property in Spain. The process is safe if it is done in the right order: checks, deposit contract, signing at the notary and registration.

The steps

• Get your NIE and open a Spanish bank account.
• Request the nota simple from the Registro de la Propiedad (land registry): it confirms the owner and any charges or mortgages.
• Sign the deposit contract (contrato de arras), usually with a 10% deposit.
• Sign the title deed at the notary (escritura).
• Pay the taxes and register the property at the Registro de la Propiedad.

Taxes and costs

• Resale property: transfer tax (ITP), from about 6% to 10% depending on the region (7% in Andalusia).
• New build: 10% VAT plus stamp duty (AJD, about 1% to 1.5%).
• Notary, land registry and gestoría: allow an extra 1% to 2%.
• The municipal capital gains tax (plusvalía) is usually paid by the seller.

If you don't live in Spain

As a non-resident owner, you will pay the annual property tax (IBI) and non-resident income tax on the property every year, even if it is not rented out. The rate is higher for owners from outside the EU, including the UK.

Our advice

Before paying the deposit, have a lawyer or gestoría check the nota simple, the licences and that there are no unpaid community fees or IBI.

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