Buying in Spain as a foreigner is perfectly possible and, contrary to what many think, not especially complicated. The only thing that adds steps to the normal process is the NIE (Foreigner Identification Number), mandatory for signing the deed. This guide shows you all the steps in order, the expected costs, and the common mistakes you should avoid.
1. Start with the NIE. The NIE is applied for at any Spanish police station by appointment, or more quickly, at the Spanish consulate in your country of origin. Cost: 100-200 € (includes consular fees and, optionally, an administrative agent). Time: 1-3 weeks. Without a NIE, you cannot make a purchase or open a bank account in your name, so it is the first procedure you must complete. If you are buying as a couple, both individuals need a separate NIE.
2. Spanish Bank Account. It is not legally mandatory, but virtually all real estate transactions use bank checks or transfers from a Spanish account. Most banks open accounts for non-residents with the NIE and proof of fiscal residency from their country of origin. It takes 1-2 weeks. Banks with experience with foreigners: Banco Sabadell, BBVA, Santander.
3. Find the property. This is where your real estate agency comes in. In South Costa Blanca we recommend visiting several areas to fully understand the differences — read our guide on Torrevieja, La Mata and Guardamar before finalizing your choice. Request a visit and we'll show you options that fit exactly what you're looking for.
4. Reservation with an Earnest Money Contract. Once the property has been chosen, an earnest money contract is signed (typically 5,000-10,000 € or 10% of the price) which reserves the property and commits both parties. This is the critical moment: hire an independent lawyer to review the documentation. Lawyer's fee: 1,000-1,500 € for a standard transaction, highly recommended.
5. Mortgage for Non-Residents. Spanish banks offer mortgages to non-residents up to 60-70% of the appraisal value (vs 80% for residents). Shorter terms (15-20 years) and a slightly higher interest rate than for residents — currently between TIN 3.5% and 4.5% depending on profile. The origin of the income and general solvency are valued; request sworn translated bank statements from the last 6 months.
6. Official appraisal. The bank commissions an appraisal from an accredited company (Tinsa, Sociedad de Tasación, etc.) — cost 300-500 € at your expense. The appraisal sets the value on which the mortgage percentage is calculated. If the appraisal is lower than the purchase price, you will have to contribute more in cash.
7. Notary. On the closing day, the deed is signed before a notary. The notary verifies identities, reads the deed, and formalizes the transfer. Notary fees: 0.2-0.5% of the deeded value. Make sure to bring your NIE, a valid passport, and the bank checks for payment.
8. Land Registry and taxes. After the notary signing, there are 30 days to register the deed with the Land Registry and pay the ITP (Property Transfer Tax) — between 6% and 10% of the price depending on the autonomous community; in the Valencian Community it is 10% for a primary residence or 11% for a secondary residence. If you buy a new build property, instead of ITP you will pay VAT (10%) plus Stamp Duty (1.5%).
Summary of associated costs: Realistic additional amount on top of the price: Property Transfer Tax / VAT + Stamp Duty (10-11.5%), notary fees (0.3%), land registry fees (0.2%), administrative agency fees (300-500 €), lawyer fees (1,000-1,500 €), appraisal if there's a mortgage (400 €). Expected total: 10-13% of the price. For a 200,000 € property, budget an additional 22,000-26,000 €.
If the purchase is as an investment for holiday rentals, we recommend you read our post about real profitability of holiday rentals in Torrevieja — the figures vary greatly depending on the area and property type. And if you'd like a no-obligation conversation to better understand the process applied to your specific case, contact us here and we'll call you.
A final tip: never sign on the first day. Visit the property at least twice, at different times, and ask questions about the homeowners' association, pending special assessments, energy performance certificate, and occupancy certificate. We guide our clients throughout this entire process to ensure the experience is as smooth as possible.