Purchasing process

Below you will find a brief summary of the process of buying a home in Spain, what are the steps to follow, the requirements of mandatory compliance, and what taxes we will find along the way.

See More

First Phase

This phase, of a more prior nature, encompasses the control of the property, the prior agreement and the mortgage.


Measures of ownership

It mainly consists in reviewing the property verifying its registry, owners, details such as location and size, and ensuring that it is a property free of any debt.


Reservation and advance contract 

Through this contract, both buyer and seller express their explicit intention that the sale will occur. This contract is called the Arras Contract in Spain. There is an initial payment of 10% of the final price that has been agreed between buyer and seller.



Here we are facing a long process, so it is advisable to start it as soon as possible. We must collect all the documents required by the bank, receive approval for the mortgage, and sign the Arras Contract.

Second Phase

This second phase has to do with everything related to the transfer of ownership of services and various utilities, as well as the registration of it.


Loan approval

In the event that a loan (mortgage) is granted, we will face the evaluation phase of it. The bank receives the prior agreement, will send an appraiser to evaluate the property, and once the estimate has been established, the financial institution will sign the mortgage favorably.


Operation closing

Here, the transfer of the property is certified before a notary. Both parties provide the requested documents (identification document, property title, payment, etc.); and finally the contract is signed and authorized by the notary.


Property registration

Once the verification that the taxes have been paid, proceeds to the transfer of profits. After registration in the Property Registry, the buyer becomes definitively the owner of the property.

What taxes does a non-resident foreigner have to pay when buying a house in Spain?

In the first place we find the non-resident tax for own use. The income is calculated based on the cadastral value of the property, and is between 1.1% and 2% of the value of the property. In the case of being a resident of the European Union, it is equivalent to 19% of this income, while it constitutes 24% for non-residents.

The declared income, without any deduction in taxes, is the amount collected from the tenant of the dwelling.

If you have any doubt about the process of buying and selling real estate in Spain, the related taxes and how to manage your particular case, do not hesitate to contact us so that we can offer you legal advice.

Taxes associated with the sale of real estate in Spain

We find mainly 4 different taxes that can be associated to the sale of real estate, which will become 5 in the case that the interested party is a foreign person.

Heritage Transmissions

The Patrimonial Transfer Tax is related to the transfer of ownership. Determine the exact type will depend on the location of the house, since it varies according to the autonomous community, but always ranges between 5% and 10%. As for the term, it must be paid in the period between the purchase and 30 days after it.

Documented Legal Acts

This tax is only applicable to homes. Again, it is around 0.75% and 1.5% depending on the region. It is usually paid with the ITP, before it was assumed by the buyer and with the new law of 2019 it should be assumed by the Bank that grants the loan.

Real Estate Tax

Issued by the municipal entity in which the property is located, it is usually between 0.5% and 1.1% of the property’s cadastral value.

Capital gain

It is a local tax borne by the seller. The amount depends on the age of the home and the cadastral value of it.

We inform you

Do not hesitate to contact for any questions.

15 + 15 =

Call Now ButtonHow can I help you?
WhatsApp chat