Buying a Home in Spain: The Ultimate Checklist

The Ultimate Checklist for Buying a Home in Spain

Spain is a dream destination for many looking to purchase a home, whether for relocation, vacation, or investment purposes. However, buying a home in Spain and navigating Spanish property law as a foreign buyer can feel overwhelming if you’re unfamiliar with local processes. To help you get started on the right foot, we at PALS have created a handy checklist to guide you through every step of buying a home in Spain.

Why Buying a Home in Spain Requires Extra Care

Purchasing property in Spain as a foreigner involves a mix of legal, financial, and cultural factors you may not encounter in your home country. Understanding these elements from the outset can save you time, money, and stress.

Below, you’ll find an essential checklist to help make your property purchase smooth and successful.

✔️ 1. Obtain a NIE (Número de Identificación de Extranjeros)

Before anything else, you’ll need a NIE number, which serves as your tax identification number in Spain. This is mandatory for all property transactions. You can apply for one at a Spanish consulate abroad or at immigration offices in Spain.

Quick tip: Start this process early, as it can take several weeks.

✔️ 2. Set Your Budget (Don’t Forget Additional Costs)

Beyond the property price, account for extra costs that can add 10-15% to your total expenditure. These include:

Property Transfer Tax (ITP) or VAT – For resale properties, you’ll pay the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales or ITP), calculated as 6-10% of the purchase price, depending on location. For new builds, buyers pay 10% VAT (IVA) and a stamp duty (Actos Jurídicos Documentados), which ranges from 0.5% to 1.5% by region. These taxes are among the biggest additional costs, so factor them into your budget early to avoid surprises.
Notary and Land Registry Fees – The notary formalises the sale with the Escritura Pública de Compraventa (public deed), with fees regulated and ranging from €600 to €1,200, depending on the property’s value. After notarisation, the property must be registered in your name at the Registro de la Propiedad (Land Registry Office), costing €400 to €1,000, based on the region and property value. These fees are essential to legally secure your ownership and avoid future disputes.
Legal and Administrative Fees – Legal fees are typically 1-2% of the purchase price, depending on the case. Administrative costs, such as document preparation, translations, and municipal paperwork, are often included in legal services. Though it may seem like an extra expense, a good lawyer can help you avoid costly mistakes like hidden debts or ownership disputes.
Property Valuation and Survey Costs – A property valuation is needed when applying for a mortgage, as banks require an official estimate of the property’s value. This typically costs €300–€600. A property survey is also recommended, especially for older or rural properties, to identify structural issues, boundary disputes, or unauthorised extensions. Survey costs range from €500–€2,000, depending on the property’s size and complexity. These assessments help protect you from overpaying and offer peace of mind about your potential new home.

Pro tip: Use a currency exchange service if you’re transferring money from abroad. Fluctuations can make a big difference in the final amount.

✔️ 3. Hire a Bilingual Spanish Property Lawyer

Spanish property law can be complex, and having a knowledgeable lawyer is non-negotiable. At PALS we will:

Ensure the property has no unresolved debts or liens – Protects you from taking on previous financial obligations tied to the property.
Verify the seller’s ownership rights – Confirms the seller has legal authority to transfer the property.
Draft or review the purchase contract – Ensures your interests are covered and avoids unfair clauses.

✔️ 4. Understand Local Property Laws

Spanish property law varies by region. PALS can break down the regulations in the specific area where you plan to buy. Key aspects to check include:

Building regulations and permits – Ensures the property meets all necessary legal construction standards, including safety regulations, building codes, and structural requirements, to guarantee compliance and peace of mind for owners and occupants.
Community of owners rules -It is important for shared properties to establish clear guidelines to avoid disputes and ensure everyone understands their responsibilities. This helps maintain harmony among occupants and prevents misunderstandings regarding obligations.

A local expert can guide you through these nuances. At PALS we are know the Valencia, Alicante, Jativa, Benidorm and surrounding areas very well!

✔️ 5. Secure Financing (If Needed)

If you’re financing your purchase, contact Spanish or international banks to explore mortgage options. Some points to consider:

Foreign buyers can typically borrow up to 70% of the property value.
Non-residents may pay higher interest rates.
Proof of income and additional documentation may be required.

Explore mortgage pre-approval to understand your borrowing capacity early on.

✔️ 6. Conduct a Property Inspection

Never skip this step when buying a home in Spain. Scheduling an independent inspection is essential to uncover any potential issues that could cause problems down the line. This includes identifying structural damages, water leaks, electrical faults, or even discrepancies in property measurements that don’t align with the official registry. An inspection provides peace of mind and ensures you’re making a fully informed investment decision.

Insider advice: Hire a local surveyor who understands Spanish building standards.

✔️ 7. Deposit and Purchase Contract (Arras)

Once you’ve chosen your property:

You’ll sign a reservation or deposit agreement, usually requiring a 10% deposit.
Next comes the Contrato de Arras (earnest money contract), which sets binding terms and conditions.

At this stage, your lawyer should double-check all contracts for hidden clauses.

✔️ 8. Sign the Deed (Escritura) at a Notary

The purchase is finalised when you and the seller sign the Escritura Pública de Compraventa (public deed) in the presence of a notary. Afterward:

Your lawyer will register the property at the local land registry.
Ensure the property taxes are transferred into your name.

This step officially confirms your ownership.

✔️ 9. Know Your Tax Obligations

Owning property comes with recurring taxes, such as:

IBI (local council tax): Paid annually for property ownership.
Non-resident property tax: If you don’t live in Spain full-time.
Income tax on rental income: If you rent the property to others.

PALS can help you stay compliant to avoid fines.

✔️ 10. Essential Paperwork You’ll Need

To ensure a smooth transaction, make sure you have the following documents in place:

Request a nota simple from the Land Registry Office to verify ownership, debts, or restrictions and ensure it matches the cadastral land registry certificate (Certificado Catastral). Translate if needed.
Obtain the Certificate of Occupancy (Cédula de Habitabilidad or Licencia de Primera Ocupación) to confirm the property meets habitability standards like plumbing and electrical setup.
Secure the Energy Performance Certificate (Certificado de Eficiencia Energética), which is legally required and details the property’s energy efficiency.
For shared properties, get a signed certificate from the community president confirming no unpaid dues by the previous owner for the last two years.
After finalising the sale, register the property in your name at the Land Registry Office to legally secure ownership.
Always consult with your lawyer to check all documents for accuracy before signing.

✔️ 11. Familiarise Yourself with Spanish Etiquette and Lifestyle

Finally, integrating into the local culture can enhance your experience as a homeowner. Here are some tips:

Respect property rules and agreements within communities of owners.
Understand regional customs, as they can differ across Spain.
Build relationships with neighbours—it’s common for communities to be welcoming, especially in smaller towns.

Final Thoughts

Buying a home in Spain as a foreigner is an exciting but intricate process. By following this checklist, you can feel confident that you’ve covered all major bases and have the right support team in place. With careful planning and expert advice, your dream home in Spain could soon become a reality.

If you’re ready to take the next step or need legal assistance, PALS specialises in helping foreign buyers. Contact us today—we’re here to guide you every step of the way!