Good to know

The NIE (Número de Identificación de Extranjero) is a Spanish tax identification number for foreigners. It is required in order to:

• Open a Spanish bank account
• Sign the public deed (escritura pública)

You can apply for an NIE at:

• A Spanish police station
• The Spanish embassy or consulate in your home country
• Through an authorized agent using a power of attorney

Processing times vary by region, usually between 4–6 weeks.

Buyers typically need to budget an additional 10–15% of the purchase price for taxes and fees, which may include:

• Transfer tax (for resale properties)
• VAT and stamp duty (for new properties)
• Notary and Land Registry fees
• Legal fees
• Mortgage arrangement costs (if financing)

Since Spain is divided into 17 autonomous regions and over 8,000 municipalities, some costs may vary depending on the location.

• Transfer Tax (ITP): 7–11% on resale properties
• VAT (IVA): 10% for new builds
• Stamp Duty (AJD): Around 1.5% on new builds, paid along with VAT
• Notary and Land Registry fees: €500–€2,000 depending on property value
• Legal fees: About 1% + VAT of the purchase price
• Loan setup fees: About 1% of the mortgage amount
• Annual Property Tax (IBI): 0.5–1.2% of the cadastral value, payable even by non-residents
• Utility connection fees: Costs for electricity, water, sewage, and gas reconnection or transfe

The process is structured and includes several stages:

1. Reservation Agreement – Buyer pays €6,000–€20,000 to secure the property.
2. Private Purchase Contract – Buyer pays 10% of the purchase price (minus the reservation fee) and all conditions are agreed.
3. Payment of Additional Costs – 10–15% extra for taxes and fees.
4. Obtaining NIE Number – Required for all foreign buyers.
5. Completion & Key Handover – Once payments are made and the deed is signed, the buyer receives the keys.
6. Role of the Notary – Verifies parties, checks debts, ensures legal compliance, and drafts the deed.
7. Buyer’s Duty to Inspect – Property is sold “as is”, so inspection before signing is essential.
8. Deed Registration – The deed is filed with the Land Registry; the process takes 2–3 months.

The notary (Notario Público) is a state-appointed official who:

• Verifies identities
• Confirms seller’s legal right to sell
• Ensures payments comply with Spanish law
• Checks for outstanding debts on the property
• Drafts and executes the purchase deed for registration

Note: The notary does not inspect the physical condition of the property.

Yes. Under Spanish law, resale properties are sold “as is”. It is the buyer’s responsibility to:

• Thoroughly inspect the property before signing
• Include any required repairs or conditions in the contract
• Ideally, hire an independent surveyor or architect to check the property

After signing the public deed and paying taxes and fees, the deed is filed with the Land Registry (Registro de la Propiedad). Registration usually takes 2–3 months. After this, the buyer receives:

• The original deed
• An official ownership certificate