The process of buying a property in Spain



Knowing the process of buying a property in Spain is essential if you plan to purchase a property in Spain.

Whether you are a native or a foreigner, Spain has its legal requirements and a series of steps that you need to follow if you want to make a successful purchase. This process is divided into two phases, which we detail here along with the regulations, taxes, and other interesting facts when buying a property.


The process of buying a property in Spain: The first phase

This can be considered as a preliminary stage that includes the verification and review of different aspects of the property, as well as the preparation of the necessary documentation. Being the main elements:


The formalities related to the property.

This part of the process of buying a property in Spain requires the review of the property, including the verification of the registration of the property, as well as of the owner(s). It is also important to confirm details such as size, location, and of course, that it is a debt-free property.


The reservation contract

Known in Spain as the Contrato de Arras, it is a document through which the seller and the buyer express their intention to complete the sale and purchase of the property. This is a private agreement that guarantees the continuation of the process and that, generally, requires the buyer to deliver a percentage of money (on account of the total).

In the case of the mortgage

When the mortgage enters the equation, the process of buying a property in Spain is considered much longer. Therefore, it is always recommended to start it as soon as possible.

For this, you will need to have all the documents that are required by the bank, as well as to get the approval for the mortgage to sign the Contrato de Arras.


Second phase: transfer and registration of the property

At this stage, everything related to the actual transfer of the property, the services, and other utilities, including the registration of the property, must be dealt with.

Approval of the mortgage (if applicable)

If you have requested a loan, you will have to face a loan evaluation period. In this, the financial entity will receive the previous agreement (Arras) and, thus, an appraiser will proceed to value the property. Once the estimate has been determined, the bank will be able to sign the mortgage favorably.


Closing the deal

This step, for the process of buying a property in Spain, means that the transfer of the property is satisfactorily certified before the notary.

Thus, both parties provide those documents that are requested, among which are the title deeds, identity documents, payment, among others. Finally, the contract can be signed and authorized by the aforementioned official.



Registration of the property

To proceed with the transfer of the profits, it is first necessary to verify that the taxes have been paid. So, in the Property Registry the registration is made, thanks to which the buyer is, finally, the owner of the property.


Aspects to take into account in the process of buying property in Spain

An important point to consider before buying any property is the taxes associated with this process and, in Spain, there are 4 main ones.

· ITP: known as Impuesto de Transmisiones Patrimoniales (Transfer Tax).

· Plusvalía: this is a local rate and is paid by the seller, related to the cadastral value and the number of years the property has been owned.

· Stamp Duty: this only applies to homes and varies according to the region. It is common to pay it together with the ITP.

· IBI: this is the Real Estate Tax, it usually represents from 0.5% to 1.1% of the cadastral value of the property.




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