Guide To Buying Property In Spain

Is it Easy for British Citizens to Purchase Property in Spain?

Yes, British citizens can purchase property with relative ease in Spain. There are no legal restrictions that are specific to non-EU citizens, but you do need to obtain a foreigner identification number or NIE.

NIE Number

The NIE (Número de Identificación de Extranjero) is a unique tax identification number from the Spanish government is required for all property owners in Spain, whether citizens or foreign nationals. It’s vital to be in possession of an NIE to carry out any transaction in Spain; this number must appear on all signed documents in Spain.

You can apply for your NIE through the nearest Spanish consulate or embassy in your home country, or in person once in Spain. You do not need a Spanish bank account to buy a property in Spain, but it’s often recommended.

The Golden Visa

Aimed at non-EU investors, the Golden Visa is a residency programme that gives investors and their families the right to live in Spain. To quality, you need to make an investment in Spain, like purchasing a property that is worth at least €500,000. The visa programme offers several advantages.

It grants you and your immediate family the right to live in Spain, allows for visa-free travel in the Schengen Zone, and after five years, investors can apply for permanent residency, subject to meeting certain criteria.

Open a Spanish Bank Account

You’ll need a local bank account in order to manage the financial aspect of the property purchase, such as the deposit, taxes and ongoing utility costs. Most banks will need you to provide your passport, NIE, proof of income or employment, and may also need proof of address.

Start Your Property Search

If you’re confident in your research skills, you can explore property listings through online portals. However, partnering directly with an experienced and professional Spanish estate agency like, Windsor, tends to lead to better results. Visit potential properties in person so you can assess their condition and suitability.

When you’ve found a property you’re interested in, be sure to carry out due diligence and legal checks. Although it’s not a legal requirement, we highly recommend having a property survey carried out to check the condition of the property and uncover any potentially costly issues.

You also need to check the property complies with local zoning and urban planning laws, especially if you’re considering purchasing a new build or rural property where they may be restrictions in place.

Be Clear on Ownership Laws

Spain has specific rules regarding foreign property ownership, but they are no more complicated than buying in any other destination. Unlike in the UK, the concepts of freehold and leasehold land don’t explicitly exist in Spain. If you buy a property then you own it outright, including the land that a house or villa may sit upon, and the ceiling, floor and walls that an apartment may be contained within. You have full rights to sell, rent out, or pass the property to heirs or beneficiaries in your will and testament.

It’s important to understand the ‘Ley de Propiedad Horizontal’ (Law of Horizontal Ownership) when buying Spanish properties in complexes or urbanisations. The horizontal property law stipulates the rights and obligations of you as the property owner towards the community.

It applies to and covers terraced or detached properties or apartments in which there are communal sections or areas. Horizontal ownership costs would apply to property owners that share the costs of maintaining these communal areas, which will vary depending on the area and size of the property and amenities.

This is why it is imperative to seek legal guidance to determine the most appropriate ownership structure and what rights you are entitled to.

Hire an Independent Lawyer

When purchasing property in Spain, enlisting an independent Spanish property lawyer (abogado) to safeguard your interests is essential, just as you would when buying a home in the UK. It’s crucial to select a reputable and qualified Spanish legal professional with fluent English and extensive experience supporting international buyers.

Your lawyer will be responsible for vital tasks, including verifying property titles, reviewing contracts, managing paperwork and associated fees, and ensuring full compliance with local ownership laws. Having a knowledgeable property lawyer by your side helps prevent misunderstandings and protects you from potential exploitation.

Arrange Financing

As with any mortgage or loan, pre-financing your Spanish property investment is crucial to have in hand ready to go once you have identified a house you like.

Bear in mind that obtaining a mortgage in Spain can take between 4-6 weeks, spending on the bank’s processes and documentation requirements, so factor this into your schedule. Locking in financing early before you house hunt allows you to peruse the market confidently knowing your price range, monthly outgoings, and affordability.

Many Spanish banks, such as BBVA, CaixaBank and Santander, offer mortgages to foreign investors but the terms and conditions may vary compared to those offered to residents. For example, non-residents typically require at least a 30% deposit plus taxes and fees. Interest rates vary but some banks offer very competitive rates for non-residents, ranging from 2.75% to 3.70% at the time of writing.

How to obtain a mortgage

To apply for a mortgage, you’ll need a valid passport, NIE, proof of income, recent bank statements, a credit report from your home country, proof of residence, and proof of your deposit. You should be able to provide these documents in English without needing them to be translated but check this with your bank. Make sure any necessary documentation for the property is up to date, such as the energy certificates and deeds.

Understand Taxes & Fees

Spain has several property transaction taxes and fees that you must budget for and factor into your overall investment costs. These differ depending on whether you are buying a new build home or a second-hand property in Spain.

It’s important to understand new and resale purchase taxes for properties in Spain to avoid any ambiguity.

Resale Property Taxes

• Property transfer tax – 7% on all property types and prices in Andalusia
• Notary & Land Registry fees – Approximately 1 – 1.5% combined
• Lawyers’ fees – Typically 1 – 1.5% of the purchase price

Off-Plan or Newly Constructed Property Taxes

• IVA (VAT) – For new construction and first sales, 10% VAT applies
• AJD – (Documented legal acts tax or stamp duty) which is a further 1.2% of the purchase price for properties purchased in Andalusia

When it comes to selling your property and understanding all the taxes that come with that, please consult with your legal representative. We will be unveiling a detailed guide on the taxes on Spanish property sales in due course.

If you are a resident, you are subject to Income Tax and Real Estate Tax (IBI). If you are a non-resident, you are subject to Income Tax, Property Tax, and an additional Non-resident Tax. Again, consult with your lawyers so you are fully aware of the precise figures associated with your purchase.

Review the Sales Contract

A buyer typically pays a fee and reserves the right to acquire the property for a set length of time (i.e., the reservation term), known as a reservation agreement. During this period, it’s agreed that the property will not be sold to another party. A letter of intent may be distributed from the buyer to the vendor and subsequently negotiated.

The contract of sale (contrato de compraventa or contrato de arras) outlines the legal terms and obligations between buyer and seller. Your lawyer will translate and analyse the contract in detail before presenting it to you for signing.

Key clauses will typically include:

• Sale price and payment timeline, including deposit amount.
• Property description – location, size, age, reference number.
• Inclusion of fixtures – kitchen appliances, lighting, etc.
• Possession date when you assume ownership.
• Penalties if either party breaches the contract.

Don’t sign anything if you do not clearly understand it. The sales contract is legally binding under Spanish law once signed by both parties.

Arranging Payment & Completion

In most Spanish property transactions, you’ll typically pay the reservation fee followed by the deposit directly to your appointed lawyer or estate agent. Funds will be held securely and transferred by your representing lawyer to the seller’s lawyer.

It’s wise currently to ensure the time between deposit payments and the possession date is no longer than absolutely necessary and conduct relevant checks on the seller. Your lawyer will register the signed deed with the Spanish Land Registry office, thus transferring the property to you and completing the purchase. The final step is transferring utilities into your name and setting up any local services you will need.

Facilitating Your Spanish Property Purchase

Buying property in Spain involves some specific factors to consider, but it’s relatively easy when you have the right legal representation working alongside you. Additionally, with proper guidance from reputable and experienced Spanish estate agents, you can find property in Spain relatively easily and without much hassle.

Spain offers incredible lifestyle benefits and property investment potential, so don’t be dissuaded. With the right guidance and support, you can seize all the incredible benefits of living in a beautiful part of the world without all the complicated legal headaches.