Buying property in Spain works differently from a home purchase in Sweden, Norway or Denmark in several important ways. There is no bidding process in the Nordic sense, the notary plays a central role, and total transaction costs — taxes, fees and legal costs — typically add up to 10–13% on top of the purchase price. Most of our clients are pleasantly surprised at how structured the process is once they understand the steps involved. This guide walks through the full journey from first contact to completion, with a worked example for a property worth €200,000.
Step 1: Get your NIE number
Before you can buy property, open a bank account, or pay taxes in Spain, you need an NIE (Número de Identificación de Extranjero) — a personal identification number for foreign nationals. You can apply in person at the Spanish police, or through the Spanish consulate in your home country, but in practice it is significantly faster to have a lawyer handle the application under a power of attorney.
Step 2: Legal due diligence on the property
Before any contract is signed, an independent lawyer — not the selling agent — should verify that the property is free of debts and charges, that the registered boundaries match reality, that any extensions or renovations are legal, and that all local charges (IBI property tax, community fees) are up to date. This step is essential and is too often skipped by buyers who rely solely on the seller’s estate agent.
Step 3: Reservation contract and deposit (arras)
Once you have found the right property, a reservation agreement or “contrato de arras” is typically signed, under which you pay a deposit — usually 10% of the purchase price. This contract binds both parties: if the seller withdraws, they must repay double the deposit; if you withdraw, you forfeit your deposit. The terms should always be reviewed by your lawyer before signing.
Step 4: Signing before the notary (escritura pública)
The final transfer of ownership takes place before a Spanish notary, who draws up the “escritura pública de compraventa” — the official title deed. The remaining balance is paid at this point, and you (or your lawyer under power of attorney) sign the deed. The notary verifies identity and basic formalities but does not act as your legal adviser — which is why having your own independent lawyer throughout the process is essential.
Step 5: Registration at the Land Registry
After signing, the purchase must be registered at the Registro de la Propiedad to give you full legal protection as owner. This is normally handled by a gestor or your lawyer and typically takes a few weeks.
Cost example: a €200,000 home in the Comunidad Valenciana
In addition to the purchase price, the following costs typically apply when buying a resale property in the Comunidad Valenciana region, where the transfer tax (ITP) rate is generally 10%:
- Transfer Tax (ITP), 10%: approximately €20,000
- Notary fees: approximately €800–1,000
- Land Registry fees: approximately €500–700
- Gestoría (administrative processing): approximately €300–400
- Legal fees (typically 1–1.5% of the purchase price): approximately €2,000–3,000
In total, additional costs usually fall between €23,500 and €25,000, roughly 12% on top of the purchase price. For new-build properties, VAT (IVA, 10%) and stamp duty (AJD) apply instead of ITP, producing a different — and often higher — cost picture.
Legal basis
Transfer tax is governed by the Ley del Impuesto sobre Transmisiones Patrimoniales y Actos Jurídicos Documentados, with rates set at regional level — in the Comunidad Valenciana, by the region’s own tax legislation. Registration of ownership is governed by the Ley Hipotecaria. Rules vary between regions and are updated periodically, so it is always worth getting an up-to-date, personalised calculation before committing.
For a quick estimate of your total purchase costs, use our calculator: colas-abogados.com/verktyg/kopkostnader.
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