Buying Process

Once you have found your perfect property in Spain and the selling price has been agreed upon, you can proceed with the purchase of your new home. Buying process key points:

Secure the Property

To reserve your property you will need to pay a 3000€ to 6000€ deposit. At this stage, you will need to sign a Private Purchase Contract (PPC), prepared by your lawyer. We can put you in contact with an experienced lawyer who speaks your language. Once you have signed the PPC, your lawyer will investigate and verify that the Title Deeds are in order. He will also make sure that there are no debts, tenants, occupants and that all taxes and utilities have been covered by previous owner.

OPC - Option to Purchase Contract

10 to 20 days after you have secured the property, you will need to formalize the transaction by signing the Option to Purchase contract (OPC). At this point you will need to pay a 10% of the final purchase price. Date of purchase and signing of the Title Deed will be agreed upon during the signing of the OPC.

Purchase - Signing of Title Deeds

Title Deeds are signed before a Notary and the final payment is made. The Notary will legally identify the vendor and the purchaser, making sure that all legal requirements have been satisfied. If you cannot be present for the signing of the Title Deeds you have an option to give your lawyer the power of attorney, enabling him to attend the notary on your behalf. You can now you can get the key to the property from the seller and start celebrating the purchase of your new home.

Buying Costs

You need to account for an extra 11%-12% of the final purchase price to cover taxes, notary fees and lawyer fees. Here is a breakdown of the payment structure: Notary charges are calculated on a sliding scale and are also subjected to number of purchasers and type of contract. Lawyer´s fee is normally 1% of the purchase price, plus IVA (VAT) and the transfer tax to be payed is 7% to 8% of the property value declared in the Title Deed. After you complete the purchase at the Notary you will also need to visit the Land Registry and get registered as the official new owner. Land Registry fees will vary and every case, but usually amount to 0.5% - 1% of the purchase price.

NIE - Non-Resident Fiscal Identification Number

Being a non-resident, in order to be able to purchase a property you will need to apply for an NIE number at a local police station. You must obtain this identification number before you can carry out any financial activities such as opening a bank account, or applying for mortgage. If required, we will provide you with assistance in all of the above.

Costs of Owning a Property in Spain

Once you have purchased your new property in Spain, you will have to face the some running costs, such as taxes and utility fees and in some cases, also the community fees.

Water and electricity

Most Spanish electricity companies use a monthly billing system. Your monthly bill will consist of a small fixed rate for the meter usage and a charge based on the amount of used electricity (kilowatts). Water charges are calculated on monthly based reflecting the usage. In the absence of separate water meters these charges will be included in the community fees.

Community Fees

Unless you are an owner of an independent property, such as a detached house you will be responsible to pay community fees. Community fees include gardening, maintenance and electricity in communal areas and administration. The total community costs are divided between the owners. Every community has at least 1 general meeting every year where all the owners get to vote on expenses and changes within the community that in turn reflect on monthly fees payed by each owner.

Income Tax

Spanish residents, as well as non-resident have to pay a tax on owning a property in Spain, which is based on a sliding scale determined by the cadastral value of the property. This tax is paid annually.

IBI - Real Estate Tax, local rates and council tax

The IBI tax amount is also set in accordance to the cadastral value of your property and is paid annually. Impuesto por Basura (Rubbish Collection Tax) Paid annually, the amount is determined by local authority.


If you require further information or would like a free consultation, please complete the form below: