How Can I Buy a Property in Spain

Feb 09, 2022

Have you ever found yourself pondering the question, ‘How can I buy a property in Spain?’ If so, then you aren’t alone. Spain is one of the most popular regions for expats and property hunters, with many relocators hoping to make the most of the Costa Calida’s hot weather, cultural sights and relatively cheap property.

Renting is always a possibility, however, most foreigners decide to take the plunge and buy property outright. The process of buying a property in Spain isn’t massively complicated but, as in any case, it’s important to have all the information to hand before making that all-important investment. No need to worry - we’ve compiled this handy guide to make your Spanish property hunting process as stress-free as possible.

A guide to buying property in Spain - the rules for expats

Spain is a very welcoming country, especially when it comes to forgein visitors! If you’re an expat wondering how you can buy a Spanish property, then the process is pretty straightforward. There are just a few details that you’ll need to have on hand to get the ball rolling.

A financial number

Spain’s tax identification number (also known as an NIE) is used to track anything related to tax or legal business, and they’re a necessity for any property hunters. You can obtain an NIE by visiting a police station in Spain with your passport, and the processing time is usually very speedy unless you live outside of Spain/the EU, in which case you might be waiting for a few weeks.

An appropriate visa

If you’re looking to stay in Spain for longer than three months and aren’t a citizen of the EU/EEA/Switzerland, you’ll need to apply for a long-term, national visa. There’s also the option of a Golden Visa, designed for foreign property owners, which gives you Spanish residency if you invest over £500,000 in the Spanish property market.

The cost of buying a property in Spain

If you’re researching how to buy a property in Spain, chances are that you’ll want a little more information surrounding the cost. We’ve provided a detailed breakdown in our article here. However, for a simplified summary, there is no generalised cost, as the fees change depending on the area and many are up for negotiation. On average, the property transfer tax/VAT stands at between 6% and 10%. You’ll be expected to pay notary costs, land registration and title deed tax, all of which should be between 1-2.5%, and the advised legal fees generally cost between 1-2% with tax included.

There are options available that allow you to purchase your property with or without a mortgage. For example, some international or Spanish banks offer special mortgage deals for expats. Bear in mind, however, that you’ll likely be restricted to borrowing at a lower loan-to-value rate than Spanish residents - 60 to 70% instead of 80% - meaning that you may need to put a little cash aside for a larger deposit.

The process

The process of buying a property in Spain is quite simple. How does it work?

Choose your desired property.
Make an offer to the seller.
If this offer is agreed upon, sign a preliminary contract between yourself and the property owner, and pay the assigned deposit.
Arrange your mortgage.
Sign the contract of sale before a notary.

At the point of the final step, the other fees as relayed earlier in this article will also be revealed and you’ll get an overall picture of how much you’ll be paying for your brand-new property in Spain.

The importance of choosing the right estate agent

Choosing a trusted, knowledgeable and reputable estate agent is an invaluable part of the property purchasing process. At Mercers, we have a unique insight into the Spanish property market and are here to help you on your home-hunting journey. For more information, contact us or view our range of properties for sale today.