Buying Property in Spain: FAQ's & Expert Advice
From legal requirements to local insights, our expert advice helps you make smart decisions when buying property in Spain.
PROPERTY FOR SALE IN SPAIN
Buying Property in Spain: FAQ's & Expert Advice
Thinking about buying property in Spain? Whether you are searching for a holiday home on the Costa del Sol, a retirement villa in Andalucía, or an investment apartment in Alicante, our Property Expert Spain team is here to guide you through the process.
Why Buy Property in Spain?
Spain continues to be one of the most popular destinations for international buyers thanks to its sunny climate, relaxed lifestyle, affordable cost of living, and excellent transport links. Whether you’re looking for a beachfront apartment in Marbella, a golf property in Mijas Golf, or a traditional townhouse in Vélez Rubio, there’s something for everyone.
Frequently Asked Questions About Buying Property in Spain
Can foreigners buy property in Spain?
Yes! Spain welcomes foreign buyers and there are no restrictions on purchasing property. All you need is an NIE number (foreigner identification number), which our team can help you apply for.
What costs are involved when buying property in Spain?
In addition to the purchase price, you should budget for:
• Transfer tax (ITP) or VAT (depending on whether the property is new or resale) and depending on the province ( roughly 8-10% for resales and 10% for newbuild )
• Notary fees and land registry fees
• Legal fees (we recommend hiring an independent property lawyer)
• Mortgage costs if you are financing the purchase
Typically, buyers should allow 10–13% extra on top of the purchase price to cover these costs.
How long does the buying process take?
Once you’ve chosen your dream property, the process usually takes 6–10 weeks, depending on the complexity of the purchase and whether you need a mortgage.
Can I get a mortgage as a non-resident in Spain?
Yes, non-residents can get mortgages in Spain. Typically, Spanish banks will lend up to 60–70% of the property value for non-residents, with a repayment term of up to 25–30 years
Do I need a lawyer to buy property in Spain?
While it’s not legally required, it’s highly recommended. A good, independent lawyer will check the property has no debts, confirm building licences, review contracts, and protect your interests during the transaction.
Our properties for sale in Spain
With more then 17.000 new build= and resales listing in Southern Spain, we are the most reliable real estate agency on the market, Red Rose Property Spain. Why should you go for less ?
Legal & Paperwork
Q: What is an NIE number and how do I get one?
A: An NIE (Número de Identificación de Extranjero) is a foreigner identification number required to buy property in Spain. You can apply for it at a Spanish consulate abroad or at a local police station in Spain.
Q: Do I need a Spanish bank account to buy property?
A: Yes, having a Spanish bank account makes it easier to pay bills, taxes, and the property purchase itself. Our team can guide you in opening an account.
Q: What documents are required for the purchase?
A: You’ll typically need your passport, NIE, proof of funds, and any mortgage documentation if applicable. Your lawyer will help ensure everything is correct.
Q: How do I transfer money safely from abroad?
A: Use a regulated international bank transfer service or a currency specialist to ensure your funds are secure and you get the best exchange rates.
Q: What is a reservation contract and a private purchase contract?
A: A reservation contract secures the property while you complete checks, and the private purchase contract (Contrato Privado de Compraventa) outlines the purchase terms before the final deed at the notary
Taxes & Costs
Q: How much is property tax (IBI) in Spain?
A: The annual IBI tax varies by municipality but is usually around 0.4–1.1% of the property’s cadastral value.
Q: What are the yearly running costs of owning a property in Spain?
A: Expect costs for utilities, community fees, insurance, and property tax. For holiday homes, budgeting 2–3% of the property value per year is a good guideline.
Q: What is Plusvalía tax and who pays it?
A: This municipal tax is applied when selling a property, based on the increase in land value. Sellers usually pay it.
Q: Are there extra costs for buying a new-build property?
A: Yes, VAT (IVA) and Stamp Duty (AJD) apply instead of transfer tax. A lawyer can calculate the exact amounts for you.
Financing & Mortgages
Q: Can foreigners get a Spanish mortgage?
A: Yes. Non-residents can usually borrow 60–70% of the property value, with terms up to 25–30 years.
Q: What are typical mortgage rates and terms in Spain?
A: Rates vary, but currently, fixed rates are around 3–4%. Terms depend on age, income, and the bank’s lending policies.
Q: What happens if I buy in cash?
A: Paying in cash simplifies the process and may make you more attractive to sellers, reducing fees associated with mortgages.
Buying Process
Q: How long does the process take from offer to completion?
A: Typically 6–10 weeks, depending on the property type, legal checks, and mortgage approval.
Q: What is the role of a notary in Spain?
A: The notary formalizes the property sale by witnessing the signing of the public deed (Escritura Pública).
Q: Should I get a survey done on the property?
A: Yes, especially for older properties. Surveys help identify structural or legal issues before purchase.
Q: Can I negotiate the price of the property?
A: Absolutely! Prices are often negotiable, we as experienced agents can help you get the best deal.
Residency & Visas
Q: Can I live in Spain full-time if I buy a property?
A: Yes, but you must comply with residency and tax requirements. EU citizens have different rules than non-EU citizens.
Q: What is the Golden Visa and how does it work?
A: Investing €500,000 or more in Spanish property may qualify you for a Golden Visa, granting residency and travel within the EU.
Q: Do I need to become a tax resident if I own a home here?
A: Only if you spend more than 183 days a year in Spain or earn significant income here. Otherwise, you remain a non-resident for tax purposes.
Property Types & Ownership
Q: Can I buy land and build my own house?
A: Yes, but check zoning regulations and permits. Our team can guide you through the legal and planning process.
Q: What’s the difference between urban and rustic land?
A: Urban land is buildable and connected to infrastructure. Rustic land is typically rural and restricted for construction.
Q: Can I buy property with friends or family?
A: Yes, but ensure legal agreements clarify ownership shares, responsibilities, and exit strategies.
Renting Out the Property
Q: Can I rent out my property to tourists?
A: Yes, but a tourist rental licence is often required depending on the municipality.
Q: Do I need a rental licence and how do I get one?
A: Most regions require a licence. Our lawyers and agents can guide you through the application.
Q: What are the taxes on rental income in Spain?
A: Rental income is taxed between 19–24% for non-residents. Deductions may apply for expenses like mortgage interest and community fees.
After the Purchase
Q: How do I set up utilities (electricity, water, internet)?
A: Your agent or lawyer can help set up contracts with local providers.
Q: What insurance do I need for my property?
A: Buildings insurance is essential, and contents insurance is recommended, especially for holiday homes.
Q: How do I pay annual taxes from abroad?
A: Taxes can be paid online via Spanish tax offices or through a representative. Many buyers use a gestor or accountant for convenience.
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