Buying a home in Spain, from NIE to escritura

1. Get your NIE

The NIE (Número de Identidad de Extranjero) is your Spanish tax identification number, and you need it to sign the deed, pay taxes and register the property. Apply at a Spanish consulate in your home country or at a designated police station in Spain — allow several weeks, so start early. A lawyer can handle it for you with a power of attorney.

2. Line up your team and your budget

• An independent lawyer (abogado) acting only for you. They run the due diligence and can sign on your behalf.
• A Spanish bank account for the purchase, community fees, the annual property tax (IBI) and utilities.
• Mortgage pre-approval if you are borrowing — Spanish banks lend to non-residents, usually at a lower loan-to-value.
• Purchase costs on top of the price: transfer tax or VAT, stamp duty, notary, land registry and legal fees. Ask your lawyer for a written estimate for the specific property.

3. Reserve the property

Once your offer is accepted, a short reservation agreement with a small deposit usually takes the property off the market for a few weeks while your lawyer carries out the checks. Read the conditions: confirm whether and when the reservation deposit is refundable.

4. Due diligence

Before a binding contract, your lawyer should check:

• Nota simple from the Registro de la Propiedad — the registered owner and any mortgages, seizures or other charges.
• That the property is legally built and licensed, including any extensions or pools, and that it has the occupancy certificate required in its region (cédula de habitabilidad or licencia de primera ocupación).
• IBI receipts (annual property tax) and a certificate from the community of owners showing no unpaid fees.
• The energy performance certificate, which the seller must provide.
• Local planning status, especially for rural land and coastal properties.

5. Sign the private contract (arras) and pay the deposit

Buyer and seller then sign a contrato de arras, fixing the price, the completion date and the conditions. The buyer typically pays 10% of the price. Under the most common form (arras penitenciales), a buyer who walks away loses the deposit, and a seller who backs out returns double.

6. Taxes, the notary and the deed

Ownership passes when the escritura pública is signed before a Spanish notary and the balance is paid. The taxes depend on the property:

• Resale homes: transfer tax (ITP), set by each region — broadly between 6% and 10% of the price.
• New homes bought from a developer: VAT (IVA) — currently 10% on residential property — plus stamp duty (AJD), also set by each region.

The seller normally pays the municipal capital-gains tax (plusvalía municipal). If the seller is a non-resident, the buyer must withhold 3% of the price and pay it to the tax office — your lawyer will handle this.

7. Register and settle in

• Your lawyer or the notary's office files the deed with the land registry — registration is what protects your ownership against third parties.
• Transfer utilities and IBI into your name.
• As a non-resident owner you file an annual non-resident income tax return (Modelo 210) on the property, even if you do not rent it out.

Good to know

This guide is general information, not legal or tax advice. Tax rates differ between regions and change over time — always work with an independent lawyer before you sign or pay anything.