Buying Property in Spain: Legal Guide

Purchase Process

1. 1. Property Search: Identify the desired location and type of property. Engage with local real estate agents or online platforms.
2. 2. Obtain a NIE: Foreign buyers must apply for a Número de Identificación de Extranjero (NIE), which is necessary for any financial transactions in Spain.
3. 3. Reservation Agreement: Sign a reservation agreement with the seller, typically accompanied by a deposit (usually 1-5% of the purchase price).
4. 4. Preliminary Contract: Enter into a ‘Contrato de Arras’ or preliminary contract, usually requiring a further deposit (10% of the purchase price).
5. 5. Due Diligence: Conduct property checks, including title deeds, urban planning regulations, and any existing debts on the property.
6. 6. Notary Appointment: Schedule a meeting with a notary public to finalize the sale and sign the public deed of sale (Escritura de Compraventa).
7. 7. Payment: Pay the remaining purchase price and associated taxes/fees.
8. 8. Registration: Register the property with the local land registry (Registro de la Propiedad) to formalize ownership.

Foreign Buyer Requirements

Foreign buyers do not face any restrictions when purchasing property in Spain. However, they must obtain a NIE, as this is required for any transaction. Additionally, buyers should consider hiring a lawyer familiar with Spanish property law to assist with the process.