7 steps for foreigners buying and registering Spanish real estate in 2024

Before the coronavirus pandemic gripped the world, property prices in Spain were growing steadily from 2015 but had not yet reached the 2008 pre-crisis mark. Despite the current uncertainty, it’s still possible for foreigners to buy real estate in Spain – but it’s important to remember, always close a transaction properly. Never cut corners. Here are seven steps for foreigners buying real estate in Spain. 

Things to know before buying:

• foreigners can buy property without restrictions;
• the purchasing process takes about three months;
• extra registration-related costs: 12-15% of the property value without a mortgage – 14-19% with a mortgage;
• to close a transaction, it’s better to hire a lawyer to check the property to avoid problems, such as buying an illegally built property that might be demolished later;
• when purchasing one or several properties worth at least €500,000, the buyer is entitled to a Golden Visa and residency.

1. Open a bank account.

A Spanish bank account is needed to facilitate transactions and all related costs.

Documents required to open a Spanish bank account

The bank can also request proof of residential address, bank statements issued in the applicant's home country, and/or an employment agreement.

When adding more than €10,000 in cash to the account, the money must have been declared at customs if it was brought into Spain from abroad. The declaration proves the money's legal origin.

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2. Obtain an Identity Number (NIE)

An NIE is a taxpayer identification number necessary for any kind of financial or legal activity. It’s impossible to buy property without an NIE.

It can be obtained at a Spanish consulate in the applicant's home country or at a Spanish police department by appointment. The following documents are required before an NIE is issued:

3. Choose a property

It’s important to pay attention to the location of the property, its age, the materials it’s made from, and its overall condition. Check out Tranio’s Spanish property listings to get an overview of the market. 

4. Sign a preliminary agreement with the seller

Having chosen the property, the buyer contacts the seller to discuss the transaction terms. If both parties are happy with the terms, they sign a preliminary agreement with a deposit. There is no minimum deposit amount but it’s usually about 10% of the property's value.

If the buyer changes their mind about purchasing the property after signing the preliminary agreement, the seller retains the deposit. In case the transaction is cancelled by the seller, the buyer will receive a double deposit refund.

The buyer then has two months to complete the transaction registration procedure and pay the remaining account. 

5. Secure a mortgage if necessary

In Spain, mortgages are issued for up to 30 years at 2.5% per annum or higher. To issue a loan, the bank will require the applicant's passport, NIE, preliminary sales agreement, tax declaration, and bank statements from their home country.

Requirements for securing a mortgage.

6. Sign the final agreement

The buyer and the seller sign the sales agreement in the presence of a notary. The notary also certifies and issues copies of the documents.

The buyer transfers the remaining amount to the seller’s account and receives the original of the sales agreement no more than three months after the transaction.

7. Inscribe the real estate at a property register

The registration procedure takes about three months – the buyer then receives the registry extract.

Registration costs

• the VAT rate is 10% when buying a newly-built residential property and 21% if buying a commercial new-build;
• stamp duty equals 1% of the property’s value;
• notary and Land Registry property registration commission fees are 0.2-2% of the property value: the more expensive the property, the better the rate;
• real estate agent commission is 3-5 %;
• existing property transfer tax is 6-11%, depending on the region;
• the realtor's fee is paid by the seller.