Guide to Buying Property in Spain as a Non-Resident

Purchasing property in Spain as a non-resident can be an exciting journey. Before diving into property viewings, there are a few essential steps to prepare you for a smooth process. Here’s a clear guide, covering everything from pre-approval for financing to obtaining your Número de Identidad de Extranjeros (NIE) and finalizing the sale.

Before You Start Your Property Search

1. Meet with a Mortgage Loan Officer and Obtain Pre-Approval: If you’ll need financing for your property, it’s essential to meet with a mortgage loan officer in Spain before starting your search. Pre-approval will clarify exactly what you can afford, ensuring you’re prepared financially and won’t need to scramble for financing after finding your ideal property. We work with Mortgage Direct. You can receive a preliminary quote in just five minutes. Click here to fill out the form.

2. Obtain Your NIE (Foreign Identity Number): An NIE is required for any property purchase in Spain. You can apply at a police station or immigration office near the area where you intend to buy or live. To apply, you’ll need:

   • Completed EX15 form (unsigned)

   • Proof of purchase intent, such as a deposit agreement or a document certifying the reservation deposit from the agency

   • Your passport (original and copy)

   Processing usually takes 3-5 weeks, and it’s important to be legally present in Spain for your NIE application to remain valid.

3. Open a Spanish Bank Account: A Spanish bank account is essential for handling transaction fees, taxes, and other payments related to the purchase. It’s also required for processing the final payment through a certified check.
   

Step 1: Reserving the Property

Once you’ve completed these preliminary steps, you’re ready to start your search and, when you find the property you’d like to buy, reserve it.

1. Make a Reservation Deposit: After deciding on a property, pay a reservation fee (generally between €1,000 and €3,000) to take it off the market for up to two weeks. This time allows for drafting the deposit agreement, ensuring you have a committed hold on the property.
   

Step 2: Deposit Agreement and Contract of Sale

1. Deposit Agreement: At this stage, you pay 10% of the property’s purchase price, with the reservation deposit subtracted from this amount. This agreement secures the transaction with a commitment from both parties. If the seller backs out, they are required to return double the deposit, whereas if the buyer withdraws, the deposit is forfeited.

2. Set a Sale Date: The deposit agreement specifies the sale date, which is usually within two months, though it may vary depending on the preferences of both buyer and seller.

3. Taxes and Fees: As the buyer, you’ll need to pay a 10% property tax and cover notary and Property Register fees, which vary based on the property’s price.

4. Finalizing the Purchase at the Notary’s Office: The sale takes place at the notary’s office selected by the buyer. At this meeting, you’ll:

   • Provide a bank-certified check for the remaining balance of the purchase price

   • Sign the contract of sale, officially transferring ownership to you

5. Property Possession and Mortgage Clearance: Upon signing the sale contract, you become the official owner, and the seller hands over possession. If the property has an existing mortgage, you’ll need to settle the remaining amount with the mortgaging bank, along with notary fees for recording the mortgage cancellation.

6. Final Administrative Steps: On the day of the sale, you’ll provide funds to the notary to cover processing the deed, paying taxes, and registration fees. The notary manages these funds, and it typically takes six weeks for the deed to be officially registered in your name. You’ll receive receipts for all payments, and if the initial amount you provided exceeds the actual costs, you’ll be refunded the difference.

   
   
   
   

   A non-official copy of the deed is usually given immediately after the sale is completed.
   

Now You Know How to Buy Property In Spain

Buying property in Spain as a non-resident involves several important steps, but by following these guidelines—getting pre-approved, securing your NIE, opening a bank account, and navigating the deposit and purchase agreement stages—you can make the process straightforward and stress-free. With your NIE in hand and a clear understanding of the legal and financial requirements, you’ll soon be on your way to owning property in beautiful Spain.