Updated: 10 October 2025
Spain attracts buyers due to its Mediterranean climate, strong expat communities, and competitive real estate prices compared to other European countries. According to the Ministry of Development, foreign buyers accounted for over 13% of Spanish property transactions in recent years.
The combination of lifestyle, accessibility, and established legal frameworks makes Spain one of Europe’s safest and most appealing real estate markets. Marbella, Costa del Sol, and Madrid consistently rank as the most sought-after areas for international investment.
“Spain remains one of Europe’s most secure and appealing destinations for property buyers.”
What documents are required to start the property purchase?
Buyers must first obtain an NIE (Número de Identidad de Extranjero), the Spanish foreigner identification number required for all property purchases. A valid passport, proof of address, and sometimes proof of funds are also required.
The NIE is essential because it links you to the Spanish tax system and legal records. Without it, you cannot pay taxes, sign deeds, or register your property. Lawyers or agencies in Marbella and across Spain can arrange this process within days.
How important is hiring a lawyer in Spain?
Hiring a lawyer is strongly recommended, as Spanish property law involves regional variations, tax implications, and due diligence checks. A lawyer verifies property ownership, checks debts or liens, and ensures compliance with local zoning regulations.
According to Quintessentia Property Advisors, over 90% of international buyers in Marbella rely on legal representation to avoid disputes. The lawyer’s role also includes reviewing the preliminary sales contract and confirming that all permits are valid.
What is the role of a notary in the Spanish property purchase?
The notary is a public official who validates the property transfer, ensuring both buyer and seller agree to legal terms. Spanish law requires the signing of the escritura pública (public deed) before a notary.
The notary ensures compliance with tax obligations, registers the transaction, and certifies the contract. While the notary protects legality, they do not replace the buyer’s lawyer, as they do not conduct due diligence beyond verifying documents.
How does the reservation contract work?
The reservation contract, also known as contrato de reserva, secures the property for the buyer. Typically, a deposit between €3,000–€10,000 is paid to remove the property from the market.
This deposit is usually held in a client escrow account. If the seller withdraws, the buyer receives a refund; if the buyer withdraws, the deposit is forfeited. It provides early protection and prevents gazumping (losing the property to a higher bidder).
What is the private purchase contract?
The private purchase contract (contrato privado de compraventa) formalizes the deal with a 10% deposit. It includes the agreed price, payment terms, and completion date.
This legally binding agreement outlines both parties’ obligations. If the buyer fails to complete, they lose the deposit; if the seller fails, they must refund double the amount. This ensures a fair balance between buyer and seller obligations.
How are property taxes structured in Spain?
Property taxes vary by region, but buyers typically face:
- Transfer Tax (ITP) of 6–10% on resale properties
- VAT (IVA) of 10% plus 1.5% Stamp Duty on new builds
- Annual property tax (IBI), usually 0.4–1.1% of cadastral value
Table: Marbella vs Estepona Property Taxes
|
Tax Label |
Marbella Rate |
Estepona Rate |
Notes |
|
Transfer Tax (ITP) |
7–10% |
7–10% |
Progressive, resale only |
|
VAT (IVA) |
10% |
10% |
Applies to new builds |
|
Stamp Duty (AJD) |
1.2–1.5% |
1.2–1.5% |
Additional to VAT |
|
Annual IBI |
0.4–1.0% |
0.5–1.1% |
Based on cadastral value |
According to Andalusian regulations, Marbella and Estepona share nearly identical structures, though cadastral values differ, impacting annual IBI.
How long does the property purchase process take?
On average, buying property in Spain takes between 6–12 weeks. The timeline depends on due diligence, financing approval, and administrative processes.
Obtaining an NIE, verifying property documents, and securing mortgage approval often cause delays. For cash buyers with prepared documents, purchases in Marbella have been completed in under four weeks.
What are the typical closing costs in Spain?
Closing costs generally range from 10–13% of the purchase price, including taxes, notary fees, registration, and legal fees.
A breakdown usually includes:
- 7–10% Transfer Tax or 10% VAT + 1.5% Stamp Duty
- 1–2% Notary, Land Registry, and Legal Fees
- Additional costs for mortgage setup (if applicable)
According to Spanish Land Registry statistics, international buyers often underestimate closing costs, highlighting the importance of early financial planning.
How does mortgage financing work for foreign buyers?
Spanish banks typically finance up to 60–70% of the property value for non-residents. Loan terms usually range between 15–25 years, with variable or fixed interest rates.
Banks require income proof, tax returns, and property valuations. Interest rates in 2025 average around 3.5–4.5%, depending on the bank and buyer profile. Mortgage approval usually extends the timeline by several weeks.
FAQs
Can foreigners freely buy property in Spain?
Yes, Spain places no restrictions on foreign buyers, whether resident or non-resident. The only requirement is an NIE for legal and tax registration.
Is it possible to buy property in Spain without visiting?
Yes, many international buyers grant Power of Attorney to a Spanish lawyer to handle the entire process, from NIE application to deed signing.
Are property prices negotiable in Spain?
Yes, negotiations are common, with discounts ranging from 5–10% depending on location and market conditions. Marbella’s luxury market often allows less flexibility.
What happens after signing at the notary?
The property is registered at the Land Registry, and utilities are transferred. Buyers also need to set up direct debit for IBI, utilities, and community fees.
Do I need Spanish residency to get a mortgage?
No, but residency status affects loan-to-value ratios and interest rates. Residents can often secure higher financing percentages and better conditions.
