Buying property in Spain: process, costs & taxes for foreigners

Buying a villa on the Costa Blanca or a flat in Málaga is a dream for many Britons. Expect purchase costs of around 10–14 % on top of the price and plan your paperwork early.

The buying process in 7 steps

1. Get a NIE number. No NIE, no notary, no bank account. Every buyer needs one. Apply online – see also how to get a NIE.
2. Open a Spanish bank account for the purchase price, taxes and bills.
3. Due diligence: land registry extract (nota simple), building permits, community debts and unpaid property tax (IBI). Use an independent lawyer.
4. Reservation: a deposit (often €3,000–10,000) takes the property off the market.
5. Private purchase contract (contrato de arras): usually 10 % of the price. If you pull out you normally lose it; if the seller pulls out, they usually pay it back twice.
6. Notary (escritura): sign the deed and pay the balance. You can be represented by power of attorney.
7. Taxes and land registry: pay the purchase tax and register the property in your name.

Purchase costs

For new builds from a developer you pay 10 % VAT (IVA) plus stamp duty (AJD) of 0.5–1.5 % instead of ITP. Transfer tax rates are set by each region, so check the current rate for Andalusia, Valencia, the Balearics or wherever you buy.

Running costs and taxes

• IBI (council property tax), rubbish collection and community fees
• Non-resident income tax (Modelo 210): even if you don't rent the property out, non-residents pay an annual tax on a deemed income – usually 1.1–2 % of the cadastral value, taxed at 24 % for non-EU residents such as UK residents.
• Rental income is declared quarterly. Holiday lets also need a licence in many regions and guest registration via SES Hospedajes – a digital certificate helps.

Tips

• Never buy without a recent nota simple.
• Be careful with rural properties (suelo rústico) – unlicensed extensions are common.
• Remember the 90/180-day rule: owning a home doesn't give you the right to stay longer. See moving to Spain from the UK.

Frequently asked questions

Can a UK citizen buy property in Spain?

Yes, without restrictions. You need a NIE and usually a Spanish bank account.

How much are the buying costs in Spain?

For resale properties typically 10–14 % of the price, depending on the region and price.

Do I have to be in Spain to sign at the notary?

No. With a notarised power of attorney, your lawyer or a trusted person can sign for you.