Buying Property in Spain: A Complete Guide
Buying a home in Spain can be exciting but also overwhelming if you’re not familiar with the process. To help, we’ve broken everything down into easy-to-follow sections covering the basics, costs, the buying process, and what happens after you purchase.
What should I do before arriving in Spain?
Find a reputable estate agent who can show you potential properties. If it's your first visit to Costa del Sol, let your agent know so they can introduce you to different areas within your budget and show you the local amenities.
Choosing the right area first is key; you can always do further viewings later to find the perfect property.
Should I find a solicitor before arriving?
Yes, we would recommend this. Arrange a meeting to set up a Power of Attorney, allowing them to handle NIE registration, open bank accounts, sign purchase agreements, and connect utilities on your behalf, saving you repeated trips.
How much does buying property cost?
Expect to pay around 10% of the purchase price for resale properties, or 13% for new builds, covering taxes, legal, and registry fees.
What are ongoing costs?
Annual taxes include IBI (similar to council tax) and Basura (garbage collection tax). If buying an apartment or townhouse (or villa within a community), expect community fees for maintenance, utilities, and insurance, plus your utility bills and insurance premiums.
Any mortgage repayments also need to be budgeted.
What do community fees cover?
They generally include communal pool maintenance, gardens, security, parking, elevators, shared facilities like gyms or spas, electricity, water, and building insurance, along with management fees.
Do I need an NIE number when buying?
Yes, it’s essential for completing the purchase, opening bank accounts, setting up utilities, buying vehicles, and even for some deliveries.
Is a Spanish bank account necessary?
Yes, for property-related payments, utility setup, taxes, and community fees. It also simplifies financial transactions during your stay.
Are there leasehold apartments?
No; when you buy an apartment, you are also buying a pro-rata share of the communal areas. This is all included in the asking price. As such, you do not pay rent to a building owner so no-one is profiting from you.
Can I get a mortgage in Spain?
Yes. Non-residents, including UK citizens, can typically borrow up to 70% of the property value, subject to financial approval.
How long does the buying process take?
Most transactions complete in 5–6 weeks after an offer is accepted, though faster options are possible if everything proceeds smoothly.
How do estate agents work?
Agencies on the Costa collaborate, sharing listings and commissions. You deal with one agent, who will source properties from multiple agencies based on your preferences.
Is buying off-plan safe?
Yes. Developers must prove liquidity and secure necessary permits, backed by bank guarantees, ensuring your deposits are protected until completion—and properties usually come with warranties.
Is furniture included?
For off-plan, usually kitchen appliances and fixtures are included but no furniture or furnishings. For resale properties, it varies. Listing details or your agent can clarify, and often furniture can be negotiated to stay.
Is an energy efficiency certificate needed?
Yes, sellers must provide one, valid for 10 years. It's a simple, inexpensive process if unavailable.
What are typical community fees?
Ranges from €75/month for basic amenities to over €1,000/month for luxury complexes with extensive facilities. Check costs before viewing.
Can I rent out my property?
Yes, but verify community rules. Long-term rental is straightforward; short-term rentals require a touristic license, which your agent can help obtain.
Please Note: As of May 2025, touristic licences are no longer transferable and communities have the right to ban short-term rentals. As such, it is important to check the community has no new rules against holiday lets even if the property currently has a licence.
How do I confirm the property is debt-free?
Your solicitor will check for registered debts. If present, they can be cleared before or during purchase, with costs deducted from your payment.
What are the next steps after finding a property?
Sign a reservation agreement—typically 1% deposit—to hold the property. Once due diligence is satisfactory, sign the purchase contract, making the sale legally binding.
Do sellers consider offers?
Generally, yes—especially on resale. Offers should be reasonable; developers on new projects usually do not negotiate.
Who pays the estate agent?
The seller covers both agents' commissions—usually around 5% plus VAT, split between them.
Should I use a solicitor?
Absolutely. They ensure legal compliance, review contracts, handle due diligence, and act as your translator if needed. Their fee is included in the total purchase costs.
Can I give my solicitor Power of Attorney?
Yes, both local and overseas buyers often do, allowing your solicitor to act on your behalf—streamlining the process and handling paperwork like NIE registration and utilities setup.
What else will my lawyer do?
They’ll register taxes, inform relevant authorities of your ownership, change utility accounts, and handle ownership transfers.
What if the seller cancels after signing?
You’re entitled to your deposit back and may claim compensation if applicable, depending on the contract stage.
What happens if a buyer cancels a property purchase?
If the buyer decides to cancel after signing the purchase agreement and paying the deposit, they will forfeit the deposit. It's crucial to be fully committed to purchasing the property and ensure your financing is in place before signing the contract.
Please remember, these buyer and seller penalties applies only after signing the legally binding purchase agreement, not after signing the reservation agreement, which only temporarily takes the property off the market for the buyer.
How should I transfer my funds when buying a property?
You can transfer funds directly from your home country's account to your account in Spain or your solicitor’s account. However, exchange rates may not be favorable, and banks usually charge fees.
A more efficient option is using a currency exchange service, which can offer better exchange rates and lower fees, potentially saving you thousands. We can recommend a trusted currency exchange provider if needed.
What taxes are involved when buying a property?
For a resale properties on the Costa del Sol, you’ll need to pay a 7% property transfer tax (ITP). You should also account for additional fees like notary, registry, and solicitor costs. We recommend budgeting around 10% of the property price for these expenses.
For new or off-plan properties, the 7% ITP is replaced with a 10% VAT, so you should budget about 13% in total.
What are the 10% fees that agents mention when buying a property?
The 10% is an estimate used by agents to cover all purchase-related costs. This includes the 7% ITP (property transfer tax) for resale properties, along with solicitor fees, notary costs, and land registry charges. For new properties, the 7% ITP is replaced by a 10% VAT, making the total cost closer to 13%.
Who should hold the deposit when buying a property?
It's always safest for a solicitor to hold the deposit in their client account. While some sellers' agents may request that the deposit be transferred to their agency, we recommend that you ask your solicitor to ensure the deposit is securely held by them.
What does a notary do?
A notary acts as an impartial official who ensures the sale is fair and legally compliant. They verify the documents, confirm the seller’s right to sell, check for any debts against the property, and ensure that all payments are correctly processed. The notary also ensures the buyer receives the keys to the property.
What happens on the day of completion at the notary office?
On completion day, you (or your solicitor with Power of Attorney) will visit the notary’s office. The notary will review all documents, confirm your understanding and agreement, and finalize the purchase. They will then transfer the funds to the seller and any relevant bank (if there’s a mortgage) and hand over the keys to you. Some waiting may be required while the documents are reviewed.
When do I receive the keys after purchasing a property?
Once the notary signs off on the transaction, you’ll receive the keys immediately at the notary’s office.
Do I need a Spanish Will after purchasing a property?
It’s highly recommended to have a Will in Spain if you own property there. The process is relatively inexpensive and can prevent complications in the event of your death. We can recommend local will writing services if needed.
How do I get utilities connected?
Your solicitor can arrange for utilities to be connected during the completion process. Just inform them ahead of time, and everything will be set up by the time you receive the keys.
Do I need insurance?
While not compulsory, home insurance is strongly recommended. For apartments and townhouses, the community fees typically cover the building’s insurance, so you’d only need insurance for your property’s contents. For detached properties, it's advised to have both building and contents insurance to cover potential risks.
What taxes do I need to pay when selling a property?
When selling, you may need to pay capital gains tax and plusvalía tax. Your solicitor can calculate these and help offset certain costs (like purchase, sale, and renovation expenses) against the capital gains tax.
Non-residents will also face a 3% withholding tax, which may be refundable. If you're purchasing another property in Spain, there may be exemptions for capital gains tax. Your solicitor or accountant can provide guidance here.
Who pays the commission when selling a property?
The seller typically covers the estate agent’s commission, which is usually around 5% plus VAT. This can be higher for luxury properties where agents invest in open days and professional marketing.
Can I use Power of Attorney to sell a property?
Yes, both buyers and sellers can use Power of Attorney (POA) to handle property transactions. While it's more commonly used by buyers, sellers can benefit from it as well, especially if they wish to avoid traveling. If you're in Spain, setting up a POA is simple and involves visiting a notary. If you’re overseas, you’ll need to sign the POA in your home country and send it to your representative in Spain for translation and processing.
What costs are involved in selling a property?
In addition to taxes (capital gains and plusvalía), there are typically agent fees (5% plus VAT) and solicitor fees (around 1% plus VAT). Your solicitor will provide a breakdown of all potential selling costs, including any taxes.
What is Rent-to-Buy?
Rent-to-buy allows you to rent a property for a certain period before purchasing it. Typically, a deposit is paid upfront, with agreed rent paid during the rental period. The remaining purchase price is paid at the end of the rental term when you take ownership. While this option is growing in demand, not many sellers on the Costa del Sol offer it, as many prefer to sell outright. If you're considering this method, it could open up a new pool of potential buyers.
Do I need an energy efficiency certificate for my property?
Yes, an energy efficiency certificate is required for the sale of any property. The notary won’t allow the sale to proceed without a valid certificate. This certificate is valid for 10 years, so if you already have one from when you purchased the property, it can be reused. If not, it's a simple and cost-effective document to obtain, and we can assist with getting one.