How to buy a house or a property in Spain?

The process of how to buy a house in Spain may seem somewhat complex for beginners. However, the steps to follow, although extensive, are very typified and structured so that anyone, with a minimum of knowledge, can use them to get the home of their dreams or invest in a safe value.

According to INE data, in 2024 home sales and purchases increased by 10 % year-on-year, registering 641,919 transactions throughout Spain -one of the highest figures since 2007-. In July 2025, 64,730 transactions were recorded, representing a year-on-year growth of 13.7% and confirming that real estate activity continues to be very dynamic.

What documents are needed to buy a house?

As a foreign buyer, the only personal documents you would need to buy a house in Spain would be a passport, a NIE (Spanish foreign identity number) and a bank account. Depending on whether you want to buy a house off plan, second hand or new, the documentation required will vary slightly..

Second-hand housing from a private individual

First of all, your agent or lawyer must request a simple copy of the property from the seller (or it can be obtained directly from the Land Registry for a small fee). This document is very important because it indicates who owns the property and if there are any encumbrances attached to it.

Secondly, for properties that are within an apartment block, urbanization or gated community, your agent or lawyer will have to ask the administrator or president of the community of owners to make a written statement as to whether the property is up to date with community payments or if there are any established community fees.

Thirdly, the owner has to request the energy efficiency certificate, which has been mandatory for some years and, finally, and very important, to know if the house is up to date with the payment of IBI and garbage, taxes that are of municipal competence, so it can be requested to the city council.

New construction or off-plan

When buying an off-plan property, the developer must provide the interested parties with the documents proving that the building project has been approved, that the property has license and that it is already in the Property Registry. In these cases, it is necessary to deliver certain amounts before having the keys of the property, reason why to ask for a policy of the guarantee as justification is also a document to consider.If the house is already built, the promoter has to deliver to his clients all the documentation of the work: plan, description of the house, report of qualities, total and itemized price and certain legal information about the property, such as the statute of the community, the horizontal division, etc.

Mortgages: How much money the bank will give you

In certain occasions, when the operation is not very clear from the risk department of the bank, they can ask for a guarantor as guarantee of the payments, but it is not always necessary. Other exceptions to this are civil servants, for whom there are mortgages specially designed for them, with 100% of the value of the apartment, among other advantages.

It is important to mention that the mortgage law in Spain has been updated and now offers much more protection for the consumer. You can see our blog titled:‘The New Mortgage Law 2019 in Spain: Do you know the latest changes?‘ to learn more about it.

Taxes: How much do I have to pay before and after I become a homeowner?

The biggest expense when buying a house with a mortgage is the payment of taxes. If it is a new house, VAT has to be paid, which is different in each Autonomous Community, the type of house it is and the moment in which it is bought (because this amount changes a lot). The average, nowadays, is around 10% of the total amount of the house.

If it is a second-hand property, you do not pay VAT, but you do pay ITP, which is the Property Transfer Tax, which also varies according to the Autonomous Community where it is located; it is now between 8% and 10%, although there are reduced rates for young people, large families, etc. and as long as it is the habitual residence.

There is also the stamp duty, a levy which is between 0.5 and 1.5% of the price of the deed and which is generated when signing before the notary and the subsequent registration.Finally you will need to pay the notary and lawyer fees, which will be approximately 1% of the sale price of the property.

So far, these are the taxes that are paid once when buying a property. Once the buyers are established as owners, they have to assume other costs for the rest of their lives: the IBI and the garbage tax (although in many municipalities they are paid jointly), which are paid once a year and whose amount depends on the size of the property and where it is located.

How do real estate agencies work in Spain?

Real estate agencies act as intermediaries between the buyer and the seller of a property and, as such, they charge a fee. They may have exclusivity clauses, although the truth is that each business has its own characteristics.The traditional real estate business required the seller to sign a contract with them whereby the seller waived the right to sell with other similar companies for a period of time. In addition, these companies charged a commission of around 4% to both the seller and the buyer. This type of operation is increasingly in disuse because real estate companies have emerged in the market that do not require exclusivity, or those that do not charge the buyer, which makes the property more attractive.

Of more recent creation are the startups startups (known as proptech), much more agile, digitalized and economical in commissions, however do not expect the same service compared to a traditional agent, for example they will not help you with documentation or checking legal issues.

Currently, real estate agencies charge between 3-5% commission to the seller alone, depending on the level of investment they are making to market their properties. However, from a buyer’s point of view, it is important to select an agency based not only on the properties they have available, but also on the types of services they provide before, during and even after the sale is completed.

When looking for a property, find out if the managing agent will help you with the buying process. For example, inform you on how to obtain a mortgage, request and verify the required documents, or help you with legal problems or registration at the notary, to name a few. It is also very important to find an agency that has extensive experience, as there are many problems and difficulties that can arise during the buying process that an experienced real estate agent will be able to solve on your behalf.

In any case, these brokerage services have two important values: on the one hand the knowledge of the real estate market (which most people lack), on the other hand, that they have a database of properties to show to clients (it is better to select those with the largest databases, as you will have more to choose from) and that they offer their support to the buyer during the whole buying process (as we have already mentioned, not all agents do, so make sure you find one that does).

What is included in the purchase process in Spain?

The buying process in Spain does not differ too much from most other countries, however, it is good to know not only the steps in the process, but what these steps entail and what to expect along the way. You can also discover more personal tips and recommendations when buying a property in our blog “Buyer’s Guide to Real Estate”.

The purchase process begins with the search of the property. At first it is normal to do it through online real estate portals, as they are easy and comfortable. Most of them are configurable and allow you to create alerts, so that you do not have to waste time putting the search criteria over and over again, and they usually send weekly summaries to their users’ e-mails, free of charge. Aspects such as the area, size of the property and, of course, the price are essential elements when looking for a property.

Alternatively, or in addition to the above, people usually have an agent to help them find a property for them. Agents often already have a large portfolio of properties to choose from and can also advise you on additional information such as the local area and amenities in the area to help you in your search.

Once you have chosen the property in question, the agent will schedule the home visit with the owners, so you can inspect for yourself if the house fits what you are looking for and if it meets all your requirements. You can view as many properties as you need, but first make sure they show you all the features you requested on paper. What characterizes a good agent is that they not only organize the visit, but also the trip (in case you are coming from abroad), and know how to formulate the right questions to ask the owner.

Once you have chosen the property in question, the next step would be what we explained above, requesting the documentation: we start with the ‘nota simple’ or even the deeds, so that your agent or lawyer can verify that everything is in order, and if you are also managing a mortgage you will need these documents to request the valuation of the property.

Once you have compiled the documentation you need for the purchase, you will need to send it to your bank to proceed with the appraisal, which is an estimate of the value of the property, usually carried out by a third party recommended by the bank. Unfortunately, few banks allow you to choose your own appraiser, however, as long as the appraiser has been approved by the Bank of Spain, the bank may accept it. Remember, if you apply for a mortgage and the valuation is lower than the asking price, the bank will only lend a percentage of that value, so you may need to have more money as a deposit to make up the difference.

As for the notary, it is a free choice. Normally, the gestorías and even the banks, have selected some professionals in concrete that suit them more by subject of proximity or even agreements to which they have arrived previously. If it is possible, the most economically interesting thing is to ask for several budgets and to go to the cheapest one.

It is always necessary to have a lawyer verify the situation at the Land Registry (which has the final say on the property and where all existing charges will appear). The lawyer will also prepare the private contract, which will bind both parties to the transaction and possibly the documents for signature before a notary, once the price has been settled and the property has been transferred free of encumbrances, concluding the sale. There are excellent lawyers in Marbella and many speak fluent English as well as other languages. The best way to find one is through the recommendation of your real estate agent.

Going to the signing with or without a lawyer is totally optional and depends on how confident the buyer wants to be, as the notary is there precisely to ensure that there are no mistakes or problems with the transfer of the property. In addition, if you have a good agent, he will also accompany you to the signing to make sure that all the procedures are carried out correctly.

Steps to take before buying a house

Once you have found the house of your dreams, it is recommended to make some previous verifications about everything that surrounds it, which will help you to avoid future problems, and as a general rule, it is something that your agent can help you with. We have already mentioned some aspects: have a simple copy with the characteristics of the house or the document from the president of the community, ensuring that the current owner is up to date with the payments.

Apartment blocks and housing developments

One of the issues that generate more controversy in the communities are the derramas, which can appear at any time, that is why it is a good idea to check the state of the building before acquiring a property. The seller may not be aware of all this, so the most reliable information will come from the administrator.

When buying a property located within a community (a house or apartment that enjoys shared facilities such as a communal pool, gardens or security), you should also request information on whether the community has passed the ITE (Technical Inspection of Buildings) or if it needs to improve anything, as well as if it has complaints about damp, noise, etc. Issues such as plumbing, electricity and downspouts are common elements that have to be changed from time to time and are very expensive, so it is also important to collect this information.

The state of the common elements of a building block can give an idea of the type of neighbors who live there: cleanliness, maintenance of common areas, whether or not there are personal belongings in the corridors, etc. It is also a good idea to talk to some of them about noise or the possibility of conflictive people.

Villas and country houses

It is also highly recommended to make sure that all parts of the building, including extensions, outbuildings on the land or the swimming pool, for example, have been legally constructed and that the additional square footage has been added to the property register. Your lawyer will need to take care of these checks when the buying process begins and your agent can also check the nota simples or title deeds to make sure that everything is properly documented. However, it is always good to ask the owner if there are any outstanding legal issues when you visit the property. In any case, you should not worry too much as if the correct building permits have been obtained, attachments can be added to the deeds, which should not take more than a few weeks, especially if it has been 5 years since construction and no complaints have been filed against the extension of the property.

Reforms What permits do I need to change the structure or extend a property?

Changing the layout of a property to create more bedrooms or, conversely, to make a space more open-plan can be time-consuming, not only because of the construction work, but also because of obtaining the correct permits in advance.

The bureaucratic procedures will be determined by the type of work, but it is always necessary to first have an architect draw up the plans and then send them to the town hall to request a permit. The duration of this process can vary considerably from one town to another. The simplest are for “minor works”, which include knocking down or raising a partition wall inside the house. For any work that affects the outside of the building, such as an extension or changing windows or doors, you will need a “major works” or “main works” permit.

When the reform does not affect the structure, it will not be necessary to present to the consistory a work project signed and carried out by a professional, but it will be necessary in the cases of distribution of rooms. Although they are very simple works, a priori, they can affect other matters such as the certificates of habitability that the houses have, which are also managed by the municipality.

Some controversial elements when it comes to home renovations are the load-bearing walls, which should not be touched in any way, as they are responsible for supporting the structure of the entire building. If you are considering renovating a property, either before or after purchase, it is always a good idea to turn to a professional, not only to get a quote and compare prices but also to make sure that there will be no major problems and that guarantees will be provided.

Conclusion

Buying a property is always an exciting project, whether it is for investment or to become a home. In Spain, the procedures required to buy a property can be quite daunting and time consuming, which is why it is so important to have an experienced professional such as a real estate agent to guide you through the process. They know the procedures perfectly and know how to speed things up so that everything runs as smoothly as possible. However, if at any time you have doubts, it is always good to think that the great value of homes in Spain and its pleasant climate makes all the effort worthwhile in the end.