Buying property in Spain: a clear guide

Before you start: define your brief

The most successful purchases begin with a clear brief. Decide how you will use the house (holiday home, permanent residence, rental or business), how close you need to be to an airport, a town or the sea, how much land you can manage, and whether you are prepared to restore. In northern Spain, where many of the best houses are historic, this last question shapes everything else.

Set a budget that includes purchase taxes, fees and, where relevant, restoration. As a rough rule of thumb, allow for costs on top of the price that can exceed ten per cent on a resale property, before any works.

Step 1: obtain your NIE

Every foreign buyer needs a NIE (Número de Identidad de Extranjero), the tax identification number for foreigners. It is required to sign the deed, pay taxes and register utilities. You can apply through a Spanish consulate in your country or, in Spain, at a police station that handles foreigners' procedures, usually with an appointment. A lawyer can manage the application with a power of attorney.

Step 2: open a Spanish bank account

A Spanish bank account is not strictly obligatory, but in practice it makes paying the price, taxes and running costs much easier. Banks will ask for your passport, NIE and proof of the origin of funds, in line with anti-money-laundering rules. Plan ahead, as these checks can take time. If you need a mortgage, Spanish banks lend to non-residents, generally on more conservative terms than to residents.

Step 3: instruct an independent lawyer

Your lawyer should be independent of the seller and the agent. Their role is to carry out due diligence: confirm ownership and charges at the Land Registry, check that the cadastre matches reality, verify that there are no debts on local taxes or community fees, review planning status and licences, and draft or review the contracts.

With historic and rural property, due diligence goes further: heritage protection, rights of first refusal in favour of public authorities on certain protected buildings, plots that are registered separately, easements and boundaries. A surveyor or architect should inspect the building itself.

Step 4: reservation, deposit contract and completion

• Reservation: a small payment may take the property off the market for a short period while checks are carried out.
• Contrato de arras: the private deposit contract. Under the most common form, if the buyer withdraws they lose the deposit; if the seller withdraws they must return it doubled. The deposit amount is agreed between the parties.
• Completion: the parties sign the public deed (escritura) before a notary, the balance is paid and the keys are handed over.
• Registration: the deed is then registered at the Land Registry in the buyer's name, which protects your ownership.

Taxes and costs when buying

On a resale property the buyer pays transfer tax, the ITP (Impuesto de Transmisiones Patrimoniales). It is set by each autonomous community and generally falls between 6 % and 10 %, with reduced rates in some cases. On a new build bought from a developer, the buyer pays VAT at 10 % plus stamp duty (AJD), also set regionally.

Add notary, Land Registry and legal fees, plus the cost of any mortgage. Once you own the property you will pay the annual local property tax (IBI) and, as a non-resident, non-resident income tax on the property. Tax rules change and depend on your personal situation, so take advice from a Spanish tax adviser and, if relevant, one in your home country.

Residency: the Golden Visa has ended

Spain abolished its investor residence permit linked to property purchases, commonly known as the Golden Visa, in April 2025. Buying a home no longer gives a route to residency on its own.

Non-EU buyers who want to spend long periods in Spain may look at other options, such as the non-lucrative residence visa for people with sufficient passive income, or the visa for remote workers. Requirements change and are assessed individually, so speak to an immigration lawyer. Citizens of the European Union can live in Spain under free-movement rules, with registration.

Buying in northern Spain: what is different

Northern Spain has its own character as a market. Many of the most desirable homes are pazos, indiano houses and stone country houses, which means heritage checks, restoration budgets and patience. Rural land in Galicia is often divided into many small plots, and planning rules limit new building on rustic land.

The climate is Atlantic, so check for damp, insulation and heating. Visit in winter as well as summer if you can. Airports at Santiago, A Coruña, Vigo and Asturias make viewing trips easy to organise.

A short checklist

• Define your brief and total budget, including taxes and works.
• Obtain your NIE and open a Spanish bank account.
• Instruct an independent lawyer and, for older houses, a surveyor or architect.
• Agree the price and sign the deposit contract once checks are satisfactory.
• Sign the deed before a notary and register the property in your name.
• Transfer utilities and set up direct debits for local taxes.

How Albor Collection can help

We present properties privately to registered buyers, arrange visits by appointment and coordinate with your lawyer, surveyor and notary throughout the process. We do not give tax or legal advice ourselves, but we can put you in touch with independent professionals who know the region. To begin, explore our property in Galicia or register your brief.