Buying a property in Spain is one of the most important decisions for those looking to invest, live, or spend long periods in the country. But beyond the purchase price, many foreign buyers wonder:
What costs are involved in buying a property in Spain and what documents do I need as a buyer?
For those considering real estate investment in Spain, it is crucial to understand not only the property price but also the additional expenses and legal requirements associated with the purchase.
In this article, we explain clearly and in detail all the costs involved (notary, registry, taxes) and the essential documentation to complete the purchase safely.
Costs and Taxes When Buying Property in Spain
When you buy a property in Spain, besides the purchase price, you must assume a series of costs and taxes. The most important are:
- Property Transfer Tax (ITP)
- Paid if the property is second-hand.
- Varies by autonomous community: usually between 6% and 10% of the purchase price.
- VAT (IVA) and Stamp Duty (AJD)
- Paid if the property is new-build.
- VAT: 10% of the purchase price (21% if it is a commercial property or office).
- AJD: between 0.5% and 1.5%, depending on the autonomous community.
- Notary Fees
- The public deed must be signed before a notary.
- Fees usually range from €600 to €1,200, depending on the property price and the number of copies.
- Land Registry Fees
- The registration of the deed in the Land Registry is mandatory.
- Approximate cost: between €400 and €800.
- Legal Advisor and Gestoría
- It is essential to have a trusted legal advisor who reviews the purchase contract, confirms that the property is free of debts or liens, and manages the payment of taxes and the registration in the Land Registry.
Documentation Required to Buy a Property in Spain
Whether you are a resident or not, the basic documentation required to buy is:
- NIE (Foreigner Identification Number): mandatory for any foreigner who wants to buy property in Spain.
- Valid passport or ID.
- Deposit or reservation contract, if applicable, specifying the conditions of the purchase.
- Proof of payment method: bank draft or transfer that complies with anti-money laundering regulations.
- Spanish bank account to pay taxes and expenses.
Step-by-Step Process to Buy
- Hire a trusted legal advisor to check that the property has no debts, charges, easements, or legal issues, and to ensure every detail of the purchase is correct.
- Apply for your NIE if you do not have one.
- Open a bank account in Spain.
- Sign the deposit contract and pay the deposit (usually 10%).
- Prepare the payment and attend the notary appointment to sign the public deed of sale.
- Let your legal advisor handle the payment of taxes and registration of the property.
Conclusion
Buying a property in Spain means assuming an additional 10% to 13% of the purchase price in taxes and fees. Furthermore, as a foreign buyer, it is essential to have your NIE, passport, clear payment method, and a trusted legal advisor.
Having professionals by your side will save you mistakes and delays, ensuring that the entire purchase process is carried out correctly and safely.
Frequently Asked Questions – Costs and Documentation for Buying Property in Spain
How much should I budget besides the purchase price?
Expect an additional 10%–13% for taxes, notary, registry, and other costs.
Do I need an NIE to buy property in Spain?
Yes, the NIE is mandatory for any foreigner signing a deed of sale.
What payment method is used to buy property?
Typically a Spanish bank draft or transfer, always complying with anti-money laundering regulations.
Can I buy without being physically in Spain?
Yes, by granting a power of attorney to a representative who can sign on your behalf.
Why is it important to have a legal advisor?
Because they guarantee the transaction is secure, confirm the property is free of debts, and ensure that all taxes and registry obligations are handled properly.