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Reservation Agreement: Before the purchase contract, there’s usually a reservation agreement. This ensures the property is taken off the market and reserved at a fixed price. A deposit, typically a few thousand euros, is required.
Private Purchase Contract (Contrato de Compraventa): This contract sets out the terms of the sale, including payment methods and construction deadlines.
Title Deed (Escritura Pública): Once the property is completed, a title deed is signed before a Notary Public, ensuring the change of ownership.
Registering the Property: After purchasing, the new owner must register the property with the local Land Registry.
Fees to Consider when Buying Off-Plan Property in Spain:

IVA (VAT): For off-plan properties, buyers must pay VAT (IVA) which, as of the last update, is 10% of the property price.
Stamp Duty (Actos Jurídicos Documentados – AJD): This is a tax on the administrative services associated with buying a new home and varies by region, typically ranging from 0.5% to 1.5%.
Notary Fees: These fees are for the property deed witnessing and can vary based on the property’s value, usually around €600-€1,000.
Land Registry Fees: After the notary, you’ll need to register the property, which can cost between €400-€650.
Legal Fees: If hiring a lawyer to assist with the purchase (highly recommended), anticipate fees of around 1% of the purchase price.
Banking Costs: If transferring money from abroad or taking a mortgage, consider currency exchange rates, bank fees, and mortgage setup costs.
Property Valuation: If obtaining a mortgage, the bank will require the property to be professionally valued.


1. Obtain NIE Number:

Foreign buyers must first obtain a Spanish NIE number (Número de Identificación de Extranjero), which is a foreigner’s identification number required for property purchase, banking, and other legal matters in Spain.

2. Arrange Financing:

Determine if you will pay cash or need a mortgage. Spanish banks typically offer mortgages to foreigners, but conditions can vary, and interest rates may be higher than for residents.

3. Legal Representation:

It’s advisable to hire a lawyer familiar with Spanish property law to assist you with the property purchase, ensuring all legalities and paperwork are correctly handled.

4. Choose a Property:

Once you find a suitable property, you may need to pay a reservation fee to take it off the market while due diligence is performed.

5. Due Diligence:

Your lawyer will check property details, ownership, outstanding debts, property boundaries, and other legalities.

6. Private Purchase Contract (Contrato de Arras):

Once due diligence is complete, a private purchase contract is signed, and a deposit, usually 10% of the purchase price, is paid.

7. Final Payment and Deeds:

The remaining balance is paid upon signing the Public Deed of Sale (Escritura) in the presence of a Notary. The deed is then presented to the Land Registry for registration.

8. Taxes and Fees:

Expect to pay around 10-15% of the purchase price in taxes and fees, including Property Transfer Tax (ITP) or VAT (IVA), Notary fees, Land Registry fees, and legal fees.

Ownership Options:

Foreigners face no restrictions on property ownership, whether it’s land, a home, or an apartment. However, different property types and locations may imply varied investment returns, lifestyle benefits, and tax implications.

Residency through Property Investment:

Spain offers a “Golden Visa” program, allowing non-EU nationals to obtain residency through an investment of at least €500,000 in Spanish property.

Tax Implications:

Foreign property owners are liable for various taxes, including Non-Resident Income Tax, wealth tax, local property taxes, and potentially capital gains tax upon sale.