Alicante Lawyers

Buying a Property in Spain 2026

Independent legal support for foreign buyers to purchase property safely

Foreigners can buy property in Spain whether they are resident or non-resident. A safe purchase normally requires an NIE number, independent legal due diligence, a carefully drafted reservation or arras contract, signing the public deed before a notary, payment of the applicable taxes and registration of ownership.

Pellicer & Heredia represents international buyers throughout the purchase process. We review the property and seller, negotiate the contract, coordinate the notary and mortgage, manage taxes and registration, and explain the immigration or tax consequences that may affect your plans in Spain.

Reviewed by Pedro Heredia Ortiz, Real Estate and International Tax Lawyer at Pellicer & Heredia firm

  • Bar Association no. 5954
  • Languages: English and Spanish
  • Last updated: August 2026.

Get expert legal assistance for buying your property in Spain

Our conveyancing solicitors in Spain assist with due diligence, contract review, negotiations, and legal representation, ensuring a safe, transparent and fully compliant transaction from start to finish.

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Buying property in Spain at a glance

The following summary covers the points most foreign buyers need to understand before they commit funds. Every transaction still requires a case-specific legal and tax calculation.

Key point
2026 position

Who can buy?

EU and non-EU citizens; residents and non-residents

Foreigner identification

NIE number required for the tax, notarial and registration process

Typical overall budget

Plan approximately 10% to 15% above the price, subject to the property and region

Valencian resale tax

General ITP: 9%; 11% when the value exceeds EUR 1 million

Valencian new-build tax

Generally 10% VAT + 1.4% AJD; reduced rates may apply

Typical transaction period

Often 6 to 12 weeks for a straightforward resale; longer where finance or defects intervene

Remote completion

Possible through a carefully drafted power of attorney

Residence rights

Buying property does not grant residence or work rights

Mortgage information

FEIN and FiAE normally supplied at least 10 calendar days before signing

Registration

The deed should be filed at the Spanish Land Registry after completion

Can foreigners buy property in Spain?

Spanish law generally allows foreign individuals and companies to acquire property, regardless of nationality or residence status. The buyer must be correctly identified, obtain an NIE number, meet anti-money-laundering requirements and comply with the same title, contract, tax and registration rules that protect any purchaser.

Some properties require additional analysis. Rural land, coastal areas, protected housing, buildings with planning infringements and zones affected by defence restrictions can carry special limitations or authorisation requirements. The legal status of the exact property matters more than the nationality of the buyer, which is why the review should begin before any reservation money is transferred.

What should be checked before you make an offer?

An attractive listing, a favourable viewing or a verbal assurance from an agent does not confirm that a property can be purchased and used as intended. Three separate questions should be answered first: who legally owns it, whether the building and alterations are lawful, and whether its physical condition and permitted use match your plans.

Confirm the legal title and seller

The Land Registry information should identify the registered owner, the property, the ownership share and any mortgage, seizure, usufruct, easement, prohibition or other registered right. The seller must have legal capacity and authority to transfer the property, including where there is a company, inheritance, divorce, power of attorney or several co-owners.

Verify planning, licences and cadastral consistency

The registered and cadastral descriptions should be compared with the property that exists on site. Extensions, pools, terraces, annexes, boundaries and changes of use may require planning documentation or regularisation. The review should also address occupancy documentation, protected status, rural or coastal restrictions and the intended rental or business use.

Arrange an independent technical survey

A real estate lawyer checks legal risk; a surveyor, architect or engineer assesses physical condition. Damp, subsidence, roof defects, structural alterations, defective installations and repair costs may not appear in the title documents. A technical inspection is therefore recommended even when the property looks recently renovated or the bank has arranged a valuation.

How much does it cost to buy property in Spain in 2026?

Purchase taxes are the largest additional cost, but they are not the only one. Buyers should also allow for notary and Land Registry fees, independent legal advice, a survey, valuation, translations, power of attorney, bank transfers, foreign-exchange costs and any mortgage-related expenses allocated to the borrower. A prudent initial budget is often 10% to 15% above the purchase price, but the completion statement must be calculated for the individual transaction.

Transaction
Main tax treatment
Critical point

Resale property in Spain

ITP at the rate set by the autonomous community

Check the regional rate, reductions and cadastral reference value

Resale property in the Valencian Community

General ITP 9%; 11% above EUR 1 million

Rates effective for taxable events from 1 June 2026; reduced rates may apply

New residential property

Generally 10% VAT

Applies to qualifying first deliveries of homes by a developer

New residential property in the Valencian Community

Generally 10% VAT + 1.4% AJD

The 1.4% is the general AJD rate; qualifying reductions may apply

Commercial property or land

Tax treatment can differ

The 10% residential VAT rate must not be assumed

If the seller is non-resident

Buyer normally withholds 3% and files Form 211

The withholding is paid to the Spanish Tax Agency within one month

The cadastral reference value can increase the tax base

For ITP and certain AJD transactions, the cadastral reference value may operate as the minimum tax base. If the declared price or consideration is higher, the higher amount is normally used. This is not the same as the cadastral value used for local IBI. The reference value should be checked before the buyer relies on a tax calculation based only on the negotiated price.

How to buy property in Spain step by step

A secure transaction is organised in a deliberate sequence. Skipping the early checks can make a later contract, mortgage or notarial completion far more difficult to correct.

Step 1 - Define the purchase structure and intended use

Confirm who will own the property, whether it will be a home, holiday property or investment, how the purchase will be funded and whether residence, tax or succession planning affects the structure.

Step 2 - Obtain the NIE and prepare compliance documents

Start the NIE number application and gather passports, civil-status documents, source-of-funds evidence, tax information and any bank documentation required for anti-money-laundering checks.

Step 3 - Review the property before paying a reservation deposit

Send the listing, reservation form, land registry details and seller information to an independent lawyer. Make any payment conditional on satisfactory legal checks and clearly documented refund rules.

Step 4 - Carry out legal due diligence

Check ownership, charges, debts, cadastral consistency, planning legality, licences, community information, tenancy or occupation, restrictions and the seller's authority to complete the sale.

Step 5 - Arrange an independent technical survey

Use a qualified surveyor or architect to assess the physical condition, alterations, boundaries and potential repair costs. A legal review does not identify structural defects.

Step 6 - Negotiate and sign the private purchase or arras contract

Set the price, deposit, completion date, mortgage condition, required documents, vacant possession, allocation of costs and remedies for default. Define the legal type of arras expressly.

Step 7 - Complete mortgage formalities where required

Obtain valuation and final approval, review the FEIN and FiAE, attend the notarial transparency stage and preserve sufficient time before signing the loan and purchase deeds.

Step 8 - Prepare the notarial completion

Confirm final funds, bank drafts or transfer mechanics, tax retention, debt cancellation, keys, certificates and the final Land Registry information immediately before signing.

Step 9 - Sign the public deed and take possession

The deed is authorised before the notary, the balance is paid, any agreed retentions are made and possession and keys are transferred under the documented conditions.

Step 10 - Pay taxes, register ownership and complete post-purchase matters

File the purchase taxes, present the deed to the Land Registry, update utilities and community records, arrange insurance and calendar the owner's ongoing tax and legal obligations.

What should legal due diligence cover?

The investigation must be tailored to the property and intended use. A complete buyer-side file normally considers the following areas before a binding private contract is signed.

  • Land Registry title, ownership shares and the seller’s legal authority.
  • Mortgages, seizures, easements, usufructs, rights of way, prohibitions and other charges.
  • Cadastral description, surface area, boundaries and coordination with the registered property.
  • IBI, community fees, approved special assessments and other debts linked to the property.
  • Planning classification, building licences, extensions, alterations, pools, annexes and any infringement proceedings.
  • Occupancy or first-occupation documentation, energy certificate and required technical or administrative records.
  • Existing tenants, occupants, short-term occupation arrangements or possession risks.
  • Community statutes and resolutions that affect use, works, pets, tourist letting or future expenses.
  • Rural, coastal, protected housing, heritage, environmental or defence-zone restrictions.
  • For off-plan property: developer status, land ownership, building licence, specifications, completion date and guarantees for advance payments.
  • The legality of the intended use, especially holiday letting, professional activity, renovation or redevelopment.
  • Purchase tax, annual tax, source-of-funds evidence, payment routing and any non-resident seller withholding.

Reservation agreement, arras contract and public deed

These documents do not perform the same function. The legal effect of a payment depends on the wording and on the type of contract, not on the label used by the agent or seller.

Document or stage
Purpose
Buyer protection required

Reservation agreement

Temporarily removes the property from the market and records an initial payment

Refundability, conditions, holding account, time limit and legal-review clause must be explicit

Private purchase or arras contract

Sets the binding commercial and legal terms before completion

Define the type of arras, finance condition, completion documents, default remedies and vacant possession

Public deed of sale

Formalises completion before a Spanish notary

Confirm final title, funds, debt cancellation, tax retentions, keys and possession

Land Registry filing

Records and protects the buyer’s registered ownership

Present the deed, pay taxes and respond promptly to any registration issue

When does the seller have to return double the deposit?

That consequence should be stated only where the contract expressly creates penitential arras under Article 1454 of the Spanish Civil Code. The buyer can then withdraw by losing the deposit and the seller can withdraw by returning double. Confirmatory or penalty arras may instead support a claim for performance, damages or a contractual penalty. The clause should identify the legal regime rather than rely on a generic reference to arras.

Resale property or new build: what changes?

The commercial decision may look similar, but the legal and tax investigation is different. A new development requires close control of the developer, construction and advance-payment protection, while a resale purchase concentrates on title, debts, planning history, occupation and the seller’s ability to transfer clean ownership.

Issue
Resale property
New-build or off-plan property

Main purchase tax

Regional ITP

Generally 10% VAT + AJD

Primary legal focus

Title, charges, debts, planning history, occupation and condition

Developer, land, building licence, specifications, guarantees, delivery and snagging

Deposit protection

Depends on the negotiated reservation or arras contract

Qualifying advance payments should be protected by the statutory guarantee framework

Completion timing

Usually agreed for a fixed near-term date

Linked to construction progress, licences and contractual delivery conditions

Physical inspection

Full survey before binding commitment

Specification review, stage inspections and snagging before or at handover

Key risk

Hidden legal, planning, debt or condition issues

Delay, specification changes, missing guarantees or incomplete licensing

Buying with a Spanish mortgage

Financing should be considered before the buyer signs a contract with a fixed completion deadline. Non-resident lending criteria, valuation, income evidence and bank compliance can take time. A mortgage approval clause should be negotiated where the purchase depends on finance, because an unsuccessful application does not automatically release the buyer from an unconditional arras contract.

Review the FEIN and the pre-signing documentation

Under Spanish mortgage law, the lender must provide the FEIN, the FiAE and other prescribed information at least ten calendar days before the loan is signed. The FEIN is the binding personalised offer for the agreed period. The borrower also attends a preliminary notarial transparency stage. The legal review should compare interest, fixed or variable structure, fees, early repayment, linked products, currency risk and default consequences.

Buying remotely through a power of attorney

International buyers do not always need to travel for every stage. A specific power of attorney can authorise the lawyer to request the NIE, sign documents, coordinate bank matters, complete before the notary, file taxes and register the property. If it is executed abroad, the document may require notarisation, an apostille or legalisation and a sworn Spanish translation.

The power should be no broader than necessary. It must distinguish the authority to buy from any authority to borrow, mortgage, receive funds or sign tax declarations, and it should contain transaction controls that reflect the buyer’s instructions.

Common mistakes foreign buyers should avoid

  • Paying a reservation deposit before legal review. Refund rights may be narrow or unclear, and the recipient account may not provide appropriate protection.
  • Assuming the estate agent or notary represents the buyer. Each participant has a different role. Only the buyer’s independent lawyer acts solely for the buyer.
  • Treating the nota simple as the entire due diligence. Registry information is essential, but planning, cadastral, community, tax, use and physical checks go further.
  • Signing an unconditional arras contract before mortgage approval. The buyer may lose the deposit or face a claim even if the bank later refuses finance.
  • Ignoring unregistered extensions or pools. A property can look complete while the registered and planning records remain inconsistent.
  • Budgeting only for the purchase price and tax headline. Survey, registration, legal, translation, banking, valuation and post-completion costs must be funded.
  • Relying on projected tourist-rental income without checking licences. Regional, municipal and community restrictions can prevent the intended use.
  • Assuming ownership creates residence rights. Property and immigration are separate legal matters, and the investor visa route closed to new applications in 2025.

What happens after the notary appointment?

Completion is not the end of the legal work. The purchase taxes must be filed, the deed must be presented and registered, and the records for the community, utilities and local taxes should be updated. Any mortgage or seller charge that should be cancelled must be monitored until the Land Registry position is correct.

Ongoing tax and ownership obligations

Owners should calendar IBI, community fees, insurance, utilities, waste charges and maintenance. Non-resident individuals may need form 210 filings for personal use or rental income. Higher-value owners may require wealth-tax analysis, and a future sale can involve capital gains tax and, where the seller is then non-resident, the buyer's 3% withholding.

Coordinate the purchase with residence and estate planning

The way the property is owned can affect marital property, succession, inheritance tax, tax residence and future disposal. Foreign owners should consider a coordinated Spanish will and review how the purchase interacts with any immigration plan. Those decisions are easier to structure before or during the purchase than after ownership has been registered.

Why do international buyers choose Pellicer & Heredia?

A foreign purchase rarely involves property law alone. Identification, bank compliance, immigration, non-resident tax, inheritance and cross-border documentation can all affect the same transaction. Our multidisciplinary team coordinates those areas so that the legal structure, completion and longer-term obligations are consistent.

  • Independent buyer-side advice. We review the property and contracts from your perspective before you commit funds.
  • Property, tax and immigration support in one firm. Related legal decisions can be coordinated instead of handled as disconnected tasks.
  • Clear communication in English. You receive practical explanations, a documented action plan and updates through the transaction.
  • Remote representation. A properly drafted power of attorney can reduce travel and keep the purchase moving.
  • Experience with international clients. Our team advises foreign buyers with property and wider legal interests in Spain.
  • Written scope and fee proposal. The work, assumptions and professional fees should be agreed before the instruction begins.

Frequently Asked Questions

Yes. Spain generally allows EU and non-EU citizens to buy residential or commercial property, whether they are resident or non-resident. The buyer must be identified correctly, obtain an NIE number for the tax and notarial process, and provide evidence of the lawful source of funds. Exceptional restrictions or additional authorisations can affect particular properties, including certain rural, coastal, protected or defence-interest areas, so the location and legal classification should be checked before a deposit is paid.

No. Residence in Spain is not a condition for ownership. A non-resident can purchase, register and later sell Spanish property. However, residence status affects tax filings, mortgage criteria, identification documents and the way future rental income or a sale is taxed. Buyers who intend to relocate should coordinate the purchase with their immigration and tax planning rather than assuming that ownership and residence follow the same rules.

Yes. The NIE is the foreigner identification number used in the tax, notarial and registration stages of the purchase. It can be requested in Spain, through an authorised representative, or through the Spanish consulate with jurisdiction over the applicant’s place of residence. The standard application uses Form EX-15 and the Form 790, code 012 fee. Because practical processing times vary, the application should begin as soon as the buyer decides to proceed.

No. Property ownership does not itself create a right to live or work in Spain. Spain abolished new investor visa applications from 3 April 2025, including the former real-estate investment route. A buyer who wants to spend more time in Spain must qualify under a separate immigration route, such as a non-lucrative residence visa, Digital Nomad Visa, work permit or family-based authorisation. The property purchase and the residence application should be assessed as separate legal processes.

As a prudent planning estimate, many foreign buyers reserve approximately 10% to 15% above the agreed price for purchase taxes and transaction costs. The exact amount depends on whether the property is new or resale, the autonomous community, the tax value, the purchase price, the mortgage, the survey, the power of attorney and the legal work required. A written completion statement should be prepared before the buyer signs a binding contract so there is no funding gap at the notary appointment.

A resale property is normally subject to Transfer Tax, known as ITP, at the rate set by the autonomous community where the property is located. A first delivery of a new residential property by a developer is generally subject to 10% VAT and Stamp Duty, known as AJD. Reduced rates can apply in defined cases. The tax base may also be affected by the cadastral reference value, so the tax should be calculated before the private contract is signed.

For taxable events from 1 June 2026, the general Valencian Transfer Tax rate on property acquisitions is 9%. The rate is 11% when the value of the property or right transferred exceeds EUR 1 million. For a new residential property, VAT is generally 10% and the general Valencian AJD rate is 1.4%, although reduced rates may apply to qualifying transactions. The buyer’s lawyer should verify the applicable rate and tax base for the specific purchase.

Yes, although Spanish lenders usually apply stricter affordability, documentation and loan-to-value criteria to non-resident borrowers. The bank will normally request income evidence, tax returns, bank statements, credit information, identification and proof of the source of the deposit. The mortgage offer and purchase contract must be coordinated carefully. A financing condition should be negotiated before the arras contract is signed, and the FEIN documentation must be reviewed during the statutory pre-signing period.

Spanish law does not make a local bank account a universal condition of property ownership. In practice, an account is strongly recommended and may be required by a mortgage lender. It also simplifies the payment of utilities, community fees, local property tax, insurance and future non-resident tax. Banks must complete anti-money-laundering checks, so buyers should prepare source-of-funds evidence and compare account, transfer and foreign-exchange charges before moving the purchase money.

The cadastral reference value is an official value used as the minimum tax base for ITP and AJD in many property transactions. If the declared price or consideration is higher, the higher figure is normally used. This value is different from the cadastral value used for IBI. A low negotiated price does not automatically reduce the purchase tax if the reference value is higher, so it should be checked before the buyer calculates costs or commits to the transaction.

A straightforward resale purchase can often complete in around six to twelve weeks, but there is no universal timetable. Mortgage approval, NIE processing, document legalisation, title defects, planning irregularities, existing tenants, probate, seller debt or an off-plan construction schedule can extend the process. The completion date should therefore be set only after the legal and financial conditions are understood. A rushed deadline is not a substitute for complete due diligence.

It depends entirely on the wording of the reservation agreement. A reservation payment is commercial practice, not a single statutory contract with automatic refund rules. The document should state when the money is refundable, who holds it, what legal checks must be passed, what happens if finance is refused and when it will be credited against the price. A buyer should not transfer a reservation deposit until an independent lawyer has reviewed those conditions and identified the recipient account.

The result depends on the type of arras and the clauses agreed. If the contract expressly creates penitential arras under Article 1454 of the Spanish Civil Code, the buyer may withdraw by losing the deposit and the seller may withdraw by returning double. Confirmatory or penalty arras can have different consequences, including a claim for performance or damages. The double-deposit rule should never be assumed unless the contract clearly establishes the relevant legal regime.

It is not compulsory, but independent legal representation is strongly recommended, particularly for a foreign buyer. The estate agent acts in the sale process, the seller’s lawyer represents the seller, and the notary is neutral. Your own lawyer checks title, planning, debts, contracts, tax, payment mechanics and completion conditions solely from your perspective. That separation is particularly important before a reservation payment or arras contract creates a binding financial commitment.

No. The notary verifies identity, capacity, formal legality, the deed and required information at completion, but does not replace the buyer’s independent legal or technical investigation. Detailed planning checks, contract negotiation, rental restrictions, physical defects, international tax planning and a review of the buyer’s commercial conditions should be completed before the notary appointment. The notarial deed is the culmination of the transaction, not the starting point for buyer-side due diligence.

Yes. A buyer can authorise a Spanish lawyer to complete many steps through a specific power of attorney, including NIE formalities, contract execution, banking coordination, the notarial deed, tax filings and registration. A power signed abroad may require notarisation, an apostille or legalisation, and a sworn Spanish translation. The document should grant only the powers needed for the transaction and include appropriate controls over payments and any mortgage authority.

The review should confirm the registered owner, the property description, mortgages, seizures, easements, usufructs, tenancies, community debts, IBI, cadastral consistency and the seller’s authority to sell. It should also examine planning legality, licences, extensions, occupancy documentation, protected status, rural or coastal restrictions and the intended rental use. For new builds, the developer, land ownership, building licence, specifications, completion conditions and guarantees for advance payments require separate checks.

When the registered seller is a non-resident without a permanent establishment, the buyer is generally required to withhold 3% of the agreed consideration and pay it to the Spanish Tax Agency using Form 211. The filing deadline is one month from the transfer date. This is a payment on account of the seller’s non-resident capital gains tax, not an extra price reduction for the buyer. The withholding and documentary evidence should be coordinated at completion.

Possibly, but the intended use must be checked before purchase. Long-term residential letting, seasonal letting and tourist accommodation follow different legal and tax rules. Tourist use may depend on regional registration, municipal planning restrictions, community statutes and building rules, and authorisations are not guaranteed. The lawyer should verify the current licensing position for the exact municipality and property before the buyer relies on projected rental income in the investment decision.

Owners should budget for local IBI, community fees where applicable, insurance, utilities, waste charges and maintenance. A non-resident individual may also have to file Form 210 for imputed income on an urban property used personally, and rental income requires separate non-resident tax filings. Wealth tax or the Temporary Solidarity Tax can apply in higher-value cases. The owner’s tax residence, ownership structure, use and worldwide assets should be reviewed after completion.

A Spanish will is not legally required, but it is commonly recommended for foreign owners of Spanish assets. A properly coordinated will can simplify the Spanish probate process, identify the chosen law where the EU Succession Regulation permits it, and reduce administrative delays for heirs. It should not be drafted in isolation from wills in other countries, marital property arrangements, ownership shares and inheritance-tax planning. Cross-border estate advice is therefore best taken as part of the purchase planning.

Spanish law requires qualifying advance payments for residential construction to be protected through insurance or a bank guarantee once the statutory conditions apply. The contract should identify the guarantee, the guarantor and the special account, and the buyer should receive individual evidence covering the payments, applicable taxes and legal interest. Before paying each instalment, the lawyer should verify the building licence, the beneficiary account, the guarantee and the contractual remedy if construction or delivery does not occur as agreed.

Protect your purchase before you commit

The safest time to identify a title, planning, tax or contract problem is before a reservation payment or arras contract limits your options. Send us the property listing or draft document and we will explain the checks, likely costs and legal route for your proposed purchase.

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