How Does the Property Purchase Process in Spain Work? Step by Step
The buyer’s perspective – without myths or misunderstandings
Buying property in Spain differs from the process known in Poland or other European countries. For many buyers, the biggest challenge is not the purchase decision itself, but understanding the procedures, documents, and the correct order of actions.
Below we present the real property purchase process in Spain – step by step, from the buyer’s point of view.
Step 1: Define the purpose of the purchase
At the very beginning, it is crucial to clearly define why you are buying the property:
- for personal use,
- as a second holiday home,
- for short-term rental,
- for long-term rental,
- as an investment with resale in mind.
The purpose of the purchase affects the location, type of property, budget, as well as the legal and tax strategy.
Step 2: Budget and real costs
The purchase price is not everything. Buyers must take into account additional costs, which in Spain usually amount to:
- approx. 10–13% of the purchase price (resale properties),
- approx. 12–15% of the purchase price (new properties).
These costs include taxes, notary fees, land registry registration, and legal representation.
Step 3: NIE number – an absolute requirement
Every buyer in Spain must have an NIE number (Número de Identidad de Extranjero). Without it, it is not possible to buy a property, sign the notarial deed, or open a Spanish bank account.
The NIE number can be obtained:
- in person in Spain,
- through a legal representative,
- at a Spanish consulate.
Step 4: Property selection and viewings
Once the purpose and budget are defined, the selection and viewing stage begins.
In Spain:
- the same property may be offered by multiple agents,
- it is essential to verify who actually represents the listing,
- legal status is far more important than appearance alone.
At this stage, a good agent acts as a filter and advisor, not just someone who “opens doors”.
Step 5: Property reservation
Once the buyer decides on a specific property, a reservation agreement is usually signed and a small deposit is paid.
The reservation:
- blocks the property from the market,
- provides time for legal analysis,
- sets the conditions for the next stages of the transaction.
Step 6: Legal due diligence
This is one of the most important stages of the process.
The following elements are verified, among others:
- property ownership,
- mortgages and encumbrances,
- compliance with zoning and planning regulations,
- building legality,
- permits and licences,
- homeowners’ association status and debts.
The buyer should not sign further agreements without full legal verification.
Step 7: Preliminary contract (arras)
The most commonly used form is the arras penitenciales agreement.
What does this mean?
- the buyer usually pays 10% of the purchase price,
- if the buyer withdraws – the deposit is lost,
- if the seller withdraws – the deposit is returned double.
This agreement protects both parties and clearly defines the conditions for completion.
Step 8: Notarial deed
The final stage is signing the notarial deed (Escritura Pública) before a notary.
At this moment:
- full payment is made,
- ownership is transferred to the buyer,
- the keys are handed over to the new owner.
In Spain, the notary does not represent the buyer or the seller, but only ensures the formal correctness of the deed.
Step 9: Registration and post-purchase formalities
After signing the deed:
- the property is registered in the Land Registry,
- taxes are paid,
- utility contracts are transferred,
- rental licences are activated if required.
This stage often requires the support of a local advisor.
Summary – what should the buyer know?
Buying property in Spain is safe and transparent, provided that:
- the process is followed step by step,
- the property is legally verified,
- the buyer has support from an experienced local advisor.
The most common problems arise not from the law itself, but from haste or a lack of reliable information.
