A guide to buying a home in Spain as a foreigner

The Foreigner Identity Number (NIE) is your identification number in Spain. You will need it to sign the purchase before a notary, pay the purchase taxes, open a bank account or set up utilities.

You can apply in Spain (Foreigners’ Office or National Police station, by appointment) or at the Spanish consulate in your country, and an authorised representative can also handle it. Apply as early as possible, as appointments can take time.

An account with a Spanish bank makes it easier to pay the price, taxes, community fees, IBI and bills. Banks offer accounts for residents and non-residents; each bank asks for its own documents.

If you are going to apply for a mortgage, bear in mind that conditions for non-residents are usually different from those for residents.

Before reserving, ask for the nota simple (land registry extract): it shows the owner and any charges (for example, a mortgage). Also check there are no outstanding community fees or IBI, the first occupancy licence or planning status where relevant, and the energy performance certificate, which is mandatory to sell or rent.

It is common to sign a deposit contract (contrato de arras) in which the buyer pays an amount on account and both parties agree the price and deadline. Depending on the type of arras, if the buyer withdraws they may lose that amount, and if the seller withdraws they may have to return it doubled. Read the conditions carefully before signing.

The purchase is formalised in a public deed before a notary, who checks the identity of the parties and the legality of the transaction. The taxes are then paid and the deed is registered at the Land Registry, which protects your ownership against third parties.

If you cannot attend, you can grant a power of attorney to someone you trust.

For a resale home, you generally pay Property Transfer Tax (ITP), whose rate is set by each autonomous region. For a new home bought from a developer, you pay VAT (IVA) and Stamp Duty (AJD).

On top of that come notary, land registry, gestoría and, if applicable, valuation and mortgage costs. Always ask for a personalised calculation before committing.

As an owner you will pay IBI (municipal property tax) every year and, where applicable, community fees. Non-resident owners generally have to file a Non-Resident Income Tax return for their Spanish property, even if they do not rent it out. If you rent it out there are additional tax obligations and, in many towns, specific rules for holiday lets.

If you are going to live in your home, registering on the padrón at the town hall records you as a resident and is required for many procedures. Connect or transfer electricity, water, gas and internet, and take out home insurance; if you have a mortgage, the bank usually requires insurance covering damage to the property.