Buying Property in Spain: Step-By-Step Q&A for Foreign Buyers

Spain continues to draw international buyers thanks to its warm climate, rich culture, and relatively affordable property market. But for foreigners, buying property in Spain can be a complex process, especially when dealing with unfamiliar legal and tax systems.

This step-by-step Q&A guide covers the most common questions about the legal process, costs, and risks. With the right legal support, you can approach your property purchase in Spain with confidence and peace of mind.

Section 1 – What You Need to Know Before Buying Property in Spain

1. Can foreigners buy property in Spain?

Yes. Foreigners, including non-EU citizens, can legally buy property in Spain without needing to be residents. There are no restrictions on the type of property you can purchase. This includes city apartments, beach homes, and countryside villas.

However, the process involves specific legal and administrative steps. For example, all buyers must obtain a Spanish tax identification number (NIE) before they can sign a purchase deed or complete the transaction.

One U.S. buyer found their dream apartment in Barcelona, but the sale was delayed for weeks because they hadn’t secured an NIE in advance. This highlights how even small details can hold up the process if not managed early on.

Working with a legal team ensures you meet these requirements from the beginning and avoid costly delays.

2. Do I need to live in Spain to buy a property?

No, you do not need to live in Spain or be physically present to buy property. Many foreign buyers complete the purchase remotely by giving power of attorney to a trusted legal representative.

However, managing everything from abroad without local legal help can lead to problems. Important steps like verifying building permits or paying the correct taxes are sometimes overlooked.

For example, a UK buyer made an offer without checking urban planning rules. Later, they learned the property had a construction violation that limited its use.

Lexidy’s lawyers can act on your behalf in Spain, manage the full transaction, and ensure everything is done correctly.

3. What documents do I need (NIE, bank account, etc.)?

To buy property in Spain, you’ll need:

• NIE (Número de Identificación de Extranjero) – a tax ID for foreigners
• Spanish bank account – for payments, taxes, and utilities
• Passport or valid ID
• Proof of funds (especially if applying for a mortgage or visa)

Without these basics, you won’t be able to sign the purchase deed, pay taxes, or register the property.

Lexidy can fast-track your NIE and help you open a compliant bank account remotely.

4. Is it better to buy a property in Spain as an individual or through a company?

TIt depends on your goals. Most foreign buyers purchase as individuals, especially when buying a home for personal use. This option usually involves lower setup costs and simpler mortgage approval.

However, if you plan to rent out the property or invest in multiple units, buying through a company may offer tax benefits and limited liability protection. A corporate structure can allow for deductions and may protect your personal assets.

That said, setting up a company without the right guidance can lead to unexpected taxes or limit how you use the property.

Lexidy’s legal team can assess your situation and recommend the best ownership structure. If needed, they can set up the company and handle all compliance steps for you.

Section 2 – Avoiding Legal Pitfalls when Buying Property in Spain

1. What legal checks should I do before buying a property in Spain as a foreigner?

Before buying any property in Spain, it’s essential to carry out legal due diligence. This includes checking:

• Property ownership and boundaries
• That the property is free of debts, mortgages, or legal claims
• Urban planning compliance and proper registration
• Any legal disputes or tenant issues that may affect the sale

Spain follows a “buyer beware” system. If you skip these checks, any existing issues with the property will become your responsibility after the purchase.

For example, if you buy a countryside home without reviewing its legal status and later find it was built on protected land without a license, you may not be able to renovate or legally use the property.

Lexidy’s property lawyers carry out full due diligence to give you peace of mind before you commit to anything.

2. What is a Nota Simple, and why is it important?

A Nota Simple is an official summary from the Spanish Property Registry showing:

• Legal owner(s)
• Property description
• Existing debts, charges, or mortgages
• Usage rights and restrictions

It’s one of the first documents you should request when buying. Buyers who skip this step may unknowingly inherit debts or discover too late that the seller doesn’t have full legal title.

Lexidy retrieves and reviews the Nota Simple to ensure everything is in order before contracts are signed.

3. Do I really need a real estate lawyer to buy a property in Spain?

Even though it’s not legally required, it’s absolutely recommended. Having a lawyer who specializes in Spanish property law is one of the smartest investments you can make.

A qualified lawyer can:

• Review and negotiate contracts
• Identify red flags during due diligence
• Represent you via power of attorney
• Ensure proper tax payments and registration
• Communicate with sellers, notaries, banks, and agents

Relying only on estate agents or developers, who represent the seller’s interest, can leave you exposed to unfair terms or missing legal documents.

Lexidy acts in your interest, providing independent legal guidance and protecting your rights every step of the way. Do you want peace of mind before signing any documentation? Visit our Spain property purchase page, where we break down the process and explain how we can help.

Section 3 – Understanding the Costs of Buying a Property in Spain

1. What taxes and fees will I pay when buying a property in Spain?

When purchasing property in Spain, foreign buyers should budget for an additional 10–15% on top of the purchase price to cover taxes and fees. Taxes and/or fees associated with buying property in Spain include:

• Transfer Tax (ITP): 6–10% for resale properties (varies by region)
• VAT (IVA) + Stamp Duty (AJD): 10% + 1–1.5% for new builds
• Notary and Land Registry Fees: About 1–2%
• Legal fees: Typically around 1% of the purchase price
• Banking and translation costs, if applicable

Foreign buyers often underestimate total costs, especially if they compare Spain’s property prices with their home country and forget to factor in these extras.

Lexidy provides a detailed cost breakdown at the start, so you’re not caught off guard and can plan your budget with full clarity. Contact us through the form below to get a free consultation.

2. Can I get a mortgage in Spain as a foreigner?

You don’t need to be a Spanish resident to get a mortgage. Non-residents can apply for mortgages in Spain, typically covering 60–70% of the property value. Requirements include:

• Proof of income and financial stability.
• Valid NIE number.
• Clean credit history.
• Down payment from outside Spain (to comply with anti-money laundering laws).

Spanish banks can be slow or confusing for foreign buyers, especially if your income is earned abroad or in a different currency. The good news is that Lexidy works with trusted mortgage brokers. This helps take the stress out of preparing all required documents while keeping financing on track and negotiations stress-free.

Want to understand the full process? Read our complete guide to getting a mortgage in Spain as a foreigner.

3. What are the hidden or ongoing costs of buying a property in Spain as a foreigner?

Owning property in Spain comes with regular expenses that buyers should factor into their long-term budget:

• Property Tax (IBI) – varies by municipality.
• Community Fees – for apartments or developments.
• Utility bills – electricity, water, internet.
• Home insurance – often required.
• Non-resident income tax – even if you don’t rent the property.

Some owners are surprised by large community repair charges or face fines for failing to file annual tax declarations as non-residents.

Lexidy offers ongoing legal support after your purchase, helping you stay compliant with local obligations and avoid unexpected costs.

Section 4 – Strategy, Risk and Ownership

1. Can I rent out my property in Spain?

Yes, you can, but it depends on the type of rental and the local rules. In Spain, there are two main options:

• Long-term rentals (more than 6 months) are generally allowed with minimal restrictions.
• Short-term or holiday rentals (such as an Airbnb) require a tourist license, which is strictly regulated or banned in many cities, especially in popular areas like Barcelona, Madrid, and Valencia.

Many buyers assume they can rent freely, and end up facing fines, license denials, or legal disputes with their community of owners.

Lexidy paints a clear picture for buyers by performing zoning and licensing checks before you buy. Before buying, you will know exactly what rental income is legally possible.

2. What’s the status of Spain’s proposed tax on foreign buyers?

There have been periodic discussions about increasing taxes for foreign buyers to address housing shortages. However, as of 2025, no national tax specifically targets foreign buyers. That being said, some regional tax changes or stricter rent control laws could affect your investment depending on location.

It is essential for buyers planning for rental income or future resale to be aware of how fast local laws can change.

Lexidy’s legal team monitors local developments and advises clients on risk exposure, so you can future-proof your property plans, especially if rental income or capital growth is a goal.

Your Spain Property Buying Checklist

Here’s a step-by-step overview of what you’ll need to legally and safely buy property in Spain as a foreigner:

• Get your NIE (Número de Identificación de Extranjero): This is your foreigner ID number in Spain, which is required for any legal or financial transaction, including property purchases.
• Open a Spanish bank account: Necessary for paying taxes, receiving rental income, and covering property-related expenses.
• Hire a real estate lawyer: A lawyer ensures all contracts are sound, the property is free from legal issues, and you don’t overpay or miss key obligations.
• Conduct legal due diligence: Includes verifying the Nota Simple, checking for debts, zoning issues, rental licenses, and more.
• Sign the private purchase contract (Contrato de Arras): This secures the deal with a deposit and outlines conditions before the final deed is signed.
• Sign the public deed (Escritura Pública) at the notary: This is when ownership officially transfers. Your lawyer will attend and represent you if needed.
• Register the property with the Land Registry: This officially records you as the new legal owner and protects your rights.
• Pay all applicable taxes and fees: This includes Transfer Tax (ITP) or VAT (IVA), Notary fees, Registry fees, and legal costs, usually around 10–15% of the property price.

Each of these steps involves legal, financial, and procedural risks if done incorrectly or without expert review

With Lexidy’s Real Estate team, you’re guided every step of the way, from document checks to closing, so you can buy with confidence and no surprises.

Make Your Property Purchase in Spain Safe, Simple, and Secure

Buying property in Spain as a foreigner is an exciting opportunity, but also a legal process that comes with real risks if you go it alone. At Lexidy, we help you navigate every step with clarity, care, and complete legal protection.

Our team of real estate lawyers works with international buyers every day, ensuring transactions are secure, compliant, and structured to your goals, whether you’re relocating, investing, or planning for retirement.

From conducting due diligence and verifying the property’s legal status to negotiating contracts, representing you at the notary, and advising on ownership structure, we make the process seamless and stress-free.

Whether you’re ready to move forward or just exploring your options, you’ll find everything you need on our Purchasing a Property in Spain service page — or simply fill out the form below to speak with our team.