If you are a foreigner and are thinking of purchasing a home in Spain (for example in our area, Dénia), there are a number of steps, requirements and legal and administrative procedures that are useful to know in advance.
For any foreigner (EU citizen or not) who wants to buy a property in Spain, the first mandatory requirement is to obtain an NIE. This number is essential (you cannot complete the purchase without it), as it serves as a tax identifier and appears on contracts, the deed of purchase, tax returns, etc.
Important: it is advisable to apply for it in advance, as the prior appointment and administrative workload can delay the process. Ideally, start the procedure as soon as possible.
Although opening a bank account in Spain is not always mandatory, it is highly recommended.
Having a local account makes large payments easier: deposit or reservation, purchase price, taxes, notary fees, community fees, utilities, etc. In addition, it can simplify procedures if you do not normally reside in Spain.
Buying a home involves ensuring that the property is free of encumbrances, debts or any outstanding issues, and that all documentation is in order (deed, registry, IBI, etc.). For this reason, it is highly recommended to have a lawyer or independent advisor verify these aspects, helping you avoid risks, especially if you are not familiar with Spanish regulations or are buying from abroad.
The usual process includes:
A reservation or deposit/reservation agreement (with a deposit).
Subsequently, signing the private sales contract (sometimes called a “contrato de arras”) and an initial payment.
Finally, signing the public deed before a notary, payment of the remaining price, and registration in the property registry. From that moment you will be officially the owner.
When buying a property in Spain you must consider taxes and costs in addition to the purchase price. These include transfer taxes (or VAT in the case of new housing), notary fees, registration fees, municipal capital gains tax (plusvalía) if applicable, and administrative fees.
It is also advisable to consider recurring costs once you are the owner: IBI (Property Tax), waste management fee, homeowners’ association, utilities and maintenance.
Second-hand property
Transfer Tax (ITP): 10% of the purchase price.
Other costs: notary, registry, administrative fees, possible agency fees.
Approximate total additional to the purchase price: 10–13%.
New property (new build)
Value Added Tax (VAT): 10%.
Stamp Duty / Documentary Legal Acts (AJD): 1.5% of the purchase price.
Other costs: notary, registry, administrative fees, etc.
Approximate total additional to the purchase price: 11–13%.
Note: these percentages are indicative and may vary depending on the province and special circumstances.
If you are buying from abroad or cannot travel frequently to Spain, you can grant a power of attorney to a lawyer or gestor, so they can act on your behalf. They will be able to handle key procedures: obtaining the NIE, opening a bank account, signing the deed, paying taxes... This procedure is common in purchases by non-resident foreigners.
Important note about regulations and advice
The regulations on property purchase by foreigners can change over time and vary depending on nationality, residency and the type of property. For this reason, we always recommend obtaining personalized advice before starting any transaction, to ensure that the entire process is carried out correctly and in accordance with current legislation.
In our real estate agency we know that for many foreign buyers these procedures can be complex or confusing, especially if they are not familiar with Spanish regulations. That is why we offer to accompany you throughout the process: from advice on requirements, help obtaining the NIE or bank account, recommending trusted lawyers, supervising the transaction and handover of keys.
If you are thinking of buying a home in Dénia or in the province of Alicante, contact us — we will be happy to guide you and provide everything you need.