Legal guidance on costs, taxes, contracts and the full purchase process for Spanish and international buyers.
There are no restrictions preventing foreign individuals or foreign companies from purchasing real estate in Spain. However, the buying process, legal checks, taxes and completion formalities may be different from those in other countries.
For this reason, foreign buyers should understand the main stages of the Spanish property purchase process before signing any documents or paying a deposit.
Yes. Any foreign person or foreign company can buy property in Spain.
It does not matter where the buyer is resident, and there is no requirement to become resident in Spain in order to purchase a property.
However, both individuals and companies will need a Spanish identification number. For non-residents, this is usually the foreigner identification number commonly known as the NIE.
This number is necessary for the purchase process, tax purposes and registration of the property.
The first important stage is usually the private purchase contract. This contract is already legally binding and normally includes a deposit.
A proper legal due diligence should ideally be carried out before signing the private purchase contract.
The property, ownership, debts and legal status should be checked before signing a binding contract.
The parties agree the commercial and legal terms, normally including a deposit and completion timetable.
The purchase is formally completed before a Spanish notary through the execution of the public purchase deed.
After completion, the acquisition is submitted for registration of the new owner at the Land Registry.
Due diligence is one of the most important parts of buying property in Spain. Before signing a binding contract, the buyer’s lawyer should verify several key points, including:
In practice, proper legal work carried out by the buyer’s lawyer is one of the principal protections available during the transaction.
Buyers should expect additional purchase costs in addition to the agreed property price. The exact amount depends on the type of property, the transaction and the autonomous region where the property is located.
For second-hand properties, buyers normally pay transfer tax. New-build purchases from a developer are generally subject to VAT together with the applicable stamp duty.
Buyers should also budget for other transaction costs such as notary, Land Registry and professional legal fees.
The applicable transfer tax depends on the autonomous region and the circumstances of the transaction.
New residential property purchased from a developer is generally subject to VAT plus the applicable stamp duty.
Buyers should also consider notary, Land Registry and professional advisory costs.
The Spanish notary is a public official who supervises the formal completion of the transaction.
The notary verifies, among other formal matters, the identity and legal capacity of the parties appearing before them and authorises the public deed of sale.
The notary does not normally replace the buyer’s independent lawyer or carry out the buyer’s full legal due diligence.
For this reason, independent legal advice remains an important part of the purchasing process.
The Spanish purchase process differs significantly from the process in the United Kingdom.
In Spain, transfer of ownership is completed through a public deed authorised before a notary, while the preparatory legal work and due diligence are normally undertaken by the lawyers.
The German notary traditionally has a broader role in preparing and managing the property purchase process.
In Spain, the buyer’s lawyer normally reviews or prepares the private contract, carries out due diligence and negotiates the legal terms, while the Spanish notary performs the formal functions associated with completion.
A safe property purchase in Spain begins with choosing the right professionals.
Buyers should work with an experienced real estate agency and appoint an independent lawyer with experience in property transactions and completions.
The lawyer should carry out due diligence on the property, review the contract, advise on applicable taxes and costs, assist with anti-money laundering requirements and guide the buyer through the process until completion.
With the right professional team, the transaction can be managed with far greater clarity and protection.
Foreign buyers can purchase property in Spain whether as individuals or through a company, but the Spanish purchase process has its own legal, tax and administrative requirements.
Proper legal due diligence before signing a binding contract is one of the most important protections available to a buyer.
Anyone considering a property investment in Spain should obtain specialised legal advice from the beginning of the process in order to identify risks and complete the purchase safely.
