Top 20 Questions Expats Ask Before Buying Property in Spain
Most people buying property in Spain for the first time arrive with the same set of questions. The process is straightforward once you understand how it works – but the gap between how property is bought in Spain and how it is bought in Northern Europe or North America creates genuine confusion. Here are the twenty questions we hear most often, answered directly.
Before you start
1. Can foreigners buy property in Spain?
Yes, without restriction. Spain does not limit property ownership by nationality. Any individual – regardless of citizenship or residency status – can purchase property in Spain. The purchase process, taxes, and legal framework are the same for all foreign buyers.
2. Do I need to be in Spain to buy a property?
No. You can complete a Spanish property purchase without being physically present by granting a power of attorney (poder notarial) to your Spanish solicitor. They can then sign all contracts, conduct the due diligence, and complete the notary signing on your behalf. This is commonly used by buyers who cannot travel to Spain for each stage of the process.
3. Do I need a NIE to buy property in Spain?
Yes. The NIE (Numero de Identificacion de Extranjero) is a tax identification number required for any significant financial or legal transaction in Spain – including property purchase, opening a bank account, and paying taxes. Obtain it before starting the purchase process. It can be applied for at a Spanish National Police station in Spain or at a Spanish consulate in your home country. See our detailed guide on how to get your NIE in Spain.
4. Do I need a Spanish bank account?
Yes, in practice. While not strictly a legal requirement, a Spanish bank account is needed to transfer purchase funds at the notary (Spanish banks issue the banker’s cheques used at completion), to pay ongoing taxes by direct debit, and to manage utility bills. Open one as early as possible in the process – you need your NIE and passport to do so.
The purchase process
5. What is the typical purchase process in Spain?
The standard sequence: (1) agree a price with the seller, (2) pay a reservation deposit to take the property off the market, (3) sign the contrato de arras (a binding preliminary contract with 10% deposit), (4) your solicitor conducts legal due diligence, (5) sign the final purchase deed (escritura) before a Spanish Notary and transfer the remaining funds. From agreeing a price to completion typically takes 6-12 weeks.
6. What is the Contrato de Arras?
The Contrato de Arras is the preliminary purchase contract signed once a price is agreed and due diligence is underway. It typically involves a 10% deposit from the buyer. Crucially, it binds both parties: if the buyer pulls out, the deposit is forfeited. If the seller pulls out, they must return double the deposit to the buyer. This mutual commitment makes it a significant moment in the process – sign it only once your solicitor has confirmed the due diligence picture is clean.
7. What does a Spanish solicitor do, and do I need one?
A Spanish solicitor (abogado) who represents you – not the seller – is essential. They check the Land Registry to confirm the seller has clear title and no debts or charges on the property, verify the property has valid planning permission, review all contracts before you sign, confirm community fees and any pending obligations, and manage the legal process through to completion. Budget 1-1.5% of the purchase price for legal fees. This is not a cost to economise on.
8. What is the difference between a solicitor and a notary in Spain?
These are distinct roles. The solicitor (abogado) works for you – conducting due diligence, advising on contracts, and protecting your interests. The notary (notario) is a state official who witnesses and authenticates the final purchase deed. The notary does not act for either party and does not conduct due diligence – that is the solicitor’s job. Both are required; their roles do not overlap.
9. What is a nota simple?
A nota simple is an extract from the Spanish Land Registry (Registro de la Propiedad) that shows who owns a property, its physical description, and any charges, mortgages, or encumbrances registered against it. Your solicitor obtains it as the first step of due diligence. You can also request one yourself from the Land Registry website. Check it before paying any deposit.
10. How long does the property purchase take in Spain?
From agreeing a price to signing at the notary: typically 6-12 weeks for a straightforward resale purchase. New build purchases on an off-plan basis have a much longer timeline – 18-30 months from reservation to keys. If a mortgage is required, add 3-6 weeks for the bank’s approval and valuation process. Complex situations – title disputes, planning queries, inheritance issues on the seller’s side – extend the timeline.
Costs and taxes
11. How much does it cost to buy property in Spain on top of the purchase price?
Budget 10-13% of the purchase price in taxes and fees for a resale property in the Valencian Community: ITP transfer tax at 10%, notary and Land Registry fees at approximately 0.5-1%, and legal fees at 1-1.5%. For new build: IVA (VAT) at 10% replaces ITP, plus AJD stamp duty at 1.5%. The total additional cost is similar either way.
12. What is the difference between ITP and IVA when buying in Spain?
ITP (Impuesto de Transmisiones Patrimoniales) is the transfer tax paid on resale properties – 10% of the purchase price in the Valencian Community. IVA (Impuesto sobre el Valor Anadido) is VAT, which applies to new build properties purchased from a developer – also 10% in Spain. You pay one or the other, not both, depending on whether the property is resale or new build.
13. What taxes will I pay every year as a non-resident property owner?
Three main annual obligations: IBI (local council tax, typically €300-€1,500 per year), IRNR imputed income tax via Modelo 210 (even if you do not rent the property – typically €300-€800 per year for a mid-range property), and possibly wealth tax if your Spanish assets exceed €500,000. A Spanish gestor can file all of these on your behalf for €150-€400 per year. See our full guide to annual property taxes in Spain for non-residents.
Residency and living in Spain
14. Does buying property in Spain give me the right to live there?
Not automatically. Property ownership and residency rights are legally separate in Spain. EU citizens (Dutch, German, French, etc.) can reside in Spain freely as EU nationals and simply register their residency. Non-EU citizens (British, Canadian, American, Australian, etc.) must apply for a visa if they want to live in Spain for more than 90 days in any 180-day period. The Non-Lucrative Visa is the most common route for non-EU buyers with sufficient passive income. See our guide to the Non-Lucrative Visa Spain.
15. What is the 90-day Schengen rule?
Non-EU nationals (British, Canadian, American, Australian, and others) can stay in the Schengen Area – which includes Spain – for a maximum of 90 days in any rolling 180-day period without a visa. This is not 90 days per calendar year; it resets on a rolling basis. Many non-EU buyers use their Spanish property as a holiday home within this 90-day allowance. Those who want to spend more time in Spain need to apply for the appropriate visa.
Mortgages and financing
16. Can I get a mortgage in Spain as a foreign buyer?
Yes. Spanish banks offer mortgages to non-resident foreign buyers. The standard loan-to-value for non-residents is 60-70% (versus 80% for Spanish residents), meaning a 30-40% deposit is required in addition to the buying costs. A full documentation package – income evidence, tax returns from your home country, bank statements – is required. See our guide to Spanish mortgages for foreigners for the full process.
Renting and managing your property
17. Can I rent out my property in Spain?
Yes, but short-term tourist rentals require a licence. The Valencia region (Comunitat Valenciana) operates a tourist rental licensing system – you must register with the regional government and display the licence number in all advertising. Unlicensed tourist rentals carry significant fines. Long-term rentals (over 11 months) do not require a tourist licence but are subject to Spanish tenancy law, which provides significant tenant protections. Confirm a property’s licence status before buying if rental income is part of your plan.
18. Do I need to declare Spanish rental income in my home country?
Yes, in almost all cases. Most countries tax their residents on worldwide income, and rental income from a Spanish property counts. Spain also taxes the rental income via IRNR. Double taxation treaties between Spain and most countries (UK, Netherlands, Germany, Canada, USA, etc.) allow you to credit the Spanish tax paid against your home-country tax liability, so you do not pay full tax twice. You do need to report in both jurisdictions. A tax advisor familiar with both tax systems is strongly advisable.
Practical concerns
19. What is a community of owners (comunidad de propietarios)?
If your property is part of a development with shared areas – an apartment building, a villa urbanisation with shared pool or gardens, or a gated community – you will automatically become a member of the community of owners (comunidad). The community manages and funds the shared areas through annual fees. These fees can range from €500 to €5,000+ per year depending on the facilities. Before buying, ask for the last three years of community accounts, the current annual fee, and details of any pending major works assessments. Your solicitor should review these as part of due diligence.
20. What happens if I find a problem with the property after I buy it?
Spanish law provides some protection. Sellers are liable for hidden defects (vicios ocultos) that were not disclosed and were not apparent on inspection – the claim period is six months from discovery. New builds carry a 10-year structural guarantee (seguro decenal), a two-year guarantee on installations, and a one-year guarantee on finishes. These are legal minimums. Prevention is significantly easier than remedy: a thorough pre-purchase inspection by an independent surveyor, and comprehensive legal due diligence by your solicitor, is the practical answer. Do not skip either.
One thing most buyers do not ask – but should
Who does the agent work for? In Spain, most estate agents represent the seller. They are paid by the seller and their commercial interest is in completing a sale at the highest price. This is not a criticism – it is simply how the market is structured. But it means the advice you receive from a listing agent is filtered through a different lens than advice from an independent buyer representative.
reSELECTA works exclusively on the buyer’s side. We conduct independent property search, provide honest market assessments, and represent your interests through the entire process – not the seller’s. If that model makes sense for how you want to approach your purchase, start with our current selection or get in touch to discuss what you are looking for.