Published on and written by Cyril Jarnias
Buying a property in Spain is a dream, but the Spanish market is unlike the French, Belgian, or Swiss markets. The rules on financing, taxation, co-ownership, urban planning, and short-term rentals are very specific. Without a clear checklist, it’s easy to underestimate costs, misjudge your borrowing capacity, or worse, buy a home with debts, illegal renovations, or one that cannot be rented out.
Before signing in Spain, every buyer (resident or non-resident) should check these 25 essential points to turn their dream project into a controlled investment, with no nasty surprises.
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1. Clarify Your Buyer Profile and Borrowing Capacity
Before even visiting a property, you need to know how Spanish banks will classify you. This classification determines how much you can borrow and the cash you will need to put in.
In Spain, banks are not primarily interested in your overall wealth, but in the stability of your income and your monthly debt level. They distinguish three main profiles:
| Tax Profile | Typical LTV | Minimum Down Payment + Fees | Key Observations |
|---|---|---|---|
| Tax resident in Spain | Up to 80% | 20% + 8–13% in fees | Most flexible conditions |
| Non‑resident EU/EEA | 60–70% | 30–40% + 8–13% | Applications handled better than non‑EU |
| Non‑resident outside EU (UK, US, etc.) | 50–60% | 40–50% + 8–13% | Considered a riskier profile |
Banks consider you a non‑resident if you spend fewer than 183 days a year in Spain and pay your taxes elsewhere, regardless of your nationality.
Before looking for a property, you need to answer two questions: Are you a tax resident in Spain? And are you from inside or outside the EU/EEA? These answers will determine your financing ratio (LTV) and your down payment needs.
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2. Accurately Calculate the Required Down Payment
Many foreign buyers discover too late that a Spanish bank finances nothing like in their home country. For a non‑resident, you need to account for:
The minimum deposit generally required for a non‑resident EU/EEA is 30% of the purchase price.
Concretely, for a purchase at €300,000 by a non‑resident:
| Item | Approximate Amount |
|---|---|
| Down payment (30–40%) | €90,000 – €120,000 |
| Taxes + fees (8–13%) | €24,000 – €39,000 |
| Total cash to budget | €114,000 – €159,000 |
On a €400,000 house, it is not uncommon for down payment + fees to approach €220,000 for a non‑resident. In 2026, most foreign buyers must come up with 40 to 43% of the price in cash to cover the down payment and acquisition costs.
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3. Understand LTV Rules and Age Limits
Spanish banks finance a percentage of the lower of two amounts: the purchase price or the appraisal value (tasación). The ratio, or LTV (Loan‑to‑Value), is strictly regulated.
| Profile | Maximum Typical LTV | Exceptional Cases |
|---|---|---|
| Non‑resident | 60–70% | 70% reserved for very strong profiles |
| Resident | Up to 80% | Rarely more for a primary residence |
| Non‑resident outside EU | Often limited to 50–60% | Any exception remains rare |
If the bank’s appraisal values the property below the agreed price, the bank applies the percentage to that lower value, and you must cover the difference.
Most banks require the loan to be repaid by age 70–75. A buyer aged 55 will therefore have a maximum loan term of only 15 to 20 years, which increases the monthly payment amount.
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4. Check Your Debt Capacity According to Spanish Criteria
Spanish lenders apply a simple rule: all your monthly debts (including the new Spanish loan) must not exceed 30–35% of your monthly net income. Some lenders go up to 40%, but they are stricter with non‑residents.
Examples of usual requirements in 2026:
Financial and historical conditions required for one borrower or two co‑borrowers
Around €2,500/month for a single borrower, or around €4,000/month for two co‑borrowers.
Generally ≤ 35%, sometimes up to 40% of monthly net income.
No recent incidents: late payments, defaults, or judgments.
Banks also check your other debts in your home country and consult the Spanish credit database (CIRBE). Any foreign loan mechanically reduces your borrowing capacity in Spain.
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5. Prepare a Complete Bank Application File (Employees and Self‑Employed)
For a non‑resident, the analysis is heavier and more documentation‑heavy than for a resident. The typical structure:
– Valid passport (all co‑borrowers)
– NIE certificate (see next point)
– Proof of address abroad (utility bill, bank statement)
– Tax residence certificate (depending on the bank)
– Family status (marriage certificate, if applicable)
– Last 3 to 6 pay slips
– Last 2 tax returns (P60 in the UK, 1040 in the US, tax assessment notice in France…)
– Employment contract or employer letter confirming position, salary, and start date
– 6 to 12 months of main account bank statements
– 2 to 3 years of complete tax returns
– Company annual accounts
– VAT returns or equivalent
– Company registration extract
– Letter from the accountant on the current situation
– Credit report from country of residence (Experian, Equifax, Schufa, Banque de France, etc.)
– Existing loan statements (mortgages, car loans, revolving credit…)
– Proof of repayment for debts closed within the last 12 months
– Savings account statements
– Sale deeds of a previous property, if the down payment comes from that
– Bank attestations
– Any proof of savings or investments
Any document not written in Spanish must be translated by a sworn translator (traductor jurado), and many must bear a Hague Apostille.
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6. Get Your NIE: An Absolute Prerequisite
The NIE (Número de Identificación de Extranjero) is the cornerstone of any real estate transaction in Spain. Without an NIE, you cannot open a bank account, register a purchase, or take out a loan.
The NIE can be applied for:
– at a Spanish consulate in your country of residence
– or in Spain, at an Oficina de Extranjería or a national police station.
The typical application includes:
– Form EX‑15 filled out in Spanish
– Original passport + copies
– Proof of reason (e.g., purchase project, preliminary agreement, notary letter)
– Tax form 790‑012 paid at a bank (approx. €10–15)
– Sometimes passport photo and proof of address
Processing times vary: from a few days in some Spanish cities to several weeks via consulates. It’s best to plan well in advance, especially if you are from outside the EU.
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7. Open a Bank Account in Spain
Even if it’s not a strict legal requirement, in practice it is difficult to manage a purchase without a Spanish account:
– Payment of the deposit (arras)
– Transfer of the unfinanced portion
– Withholding of taxes (ITP or VAT + AJD)
– Direct debits for bills (water, electricity, community fees, IBI)
– Receipt or payment of loan installments
To open a non‑resident account, the bank generally requires:
– NIE
– Passport
– Proof of address abroad
– Proof of income (pay slips, financial statements, etc.)
– Sometimes a non‑residence certificate
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8. Anticipate Total Acquisition Costs (8 to 15%)
Acquisition costs in Spain typically fall between 8 and 13% of the price, potentially reaching 15–16% for new builds in certain regions. There are two main cases.
Resale Properties: ITP
You pay the ITP (Impuesto de Transmisiones Patrimoniales), a transfer tax, with rates varying by region:
| Region (examples) | Current ITP Rate (2026) |
|---|---|
| Madrid | 6% |
| Andalusia | 7% (flat rate) |
| Valencia | 9% as of June 2026 (previously 10%) |
| Catalonia | 10% |
| Balearic Islands | 8–11% (progressive) |
| Murcia | 8% |
New Builds: VAT + AJD
If you buy off-plan or a new home from a developer:
VAT rate applicable to commercial transactions, versus 10% for residential.
Notary, Registry, Lawyer, Gestor Fees
– Notary: nationally regulated fee, generally 0.2–0.5% of the price, around €700–€1,200 on a standard property
– Land Registry: around 0.1–0.25% of the price, i.e., €400–€800
– Lawyer: very often 1% of the price + 21% VAT, minimum €1,500–€2,000
– Gestor (administrative management, taxes): €300–€600
– Bank appraisal (tasación): €300–€700
In practice, on a €300,000 purchase, total acquisition costs (taxes + professionals) typically fall within a range of €27,000 to €45,000.
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9. Choose an Independent Lawyer and Verify the Real Estate Agent
In Spain, the notary is not your advisor; they are neutral and ensure the legal form of the deed. Protecting your interests requires a lawyer specialized in real estate, separate from the agency, developer, and notary.
Their role:
– Obtain and analyze the Nota Simple (extract from the Property Registry)
– Check for encumbrances: mortgages, seizures, liens
– Verify urban planning compliance: permits, occupancy licenses, infractions
– Examine the situation of the homeowners’ association and its debts
– Review all contracts (reservation, arras, preliminary agreement, deed)
– Ensure payment and declaration of taxes (ITP/IVA + AJD)
– Register the purchase at the Property Registry
In several regions (Andalusia, Valencia, Balearic Islands, Catalonia, etc.), regulations are tightening with public registries, mandatory professional liability insurance, and deposit guarantees. Before entrusting a mandate or a deposit, it is advisable to check these points.
– Regional registry registration number (RAIE in Andalusia, ROAIIB in the Balearic Islands, AICAT in Catalonia, GVA registry in Valencia…)
– Existence of a professional liability insurance policy (often €100,000 or more)
– Existence of a guarantee covering client deposits (often €60,000)
If an agent is not registered where the region requires it, some jurisdictions have already ruled that they cannot enforce their commission in court in the event of a dispute.
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10. Scrutinize the Nota Simple and the Property Registry
The Nota Simple is a summary extract from the Property Registry. It is the first document your lawyer will request. It shows:
– the identity of the registered owner;
– the description of the property (area, use, units, shares);
– encumbrances: mortgages, seizures, easements, etc. (cargas, embargos);
– any preventive annotations (disputes, pending seizures…).
Your lawyer must verify that: all documents are in order.
The seller is the legal owner with a clear chain of title. The property description matches reality, with no undeclared extensions. All mortgages will be cancelled at signing, and there are no excessive encumbrances or disputes.
In parallel, these data should be compared with those of the Cadastre (Catastro), which provides the plan, the cadastral reference, and the cadastral value (used for local taxes). Any major discrepancy (area, boundaries, use) is a warning sign.
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11. Check Planning, Licenses, and Urban Planning Compliance
Spanish urban planning is one of the main risk areas, especially on certain coasts where properties have already faced demolition orders. Urban planning checks go through the Ayuntamiento (town hall):
Before any transaction, it is essential to verify the zoning, the existence of a regular building permit and a First Occupancy License (Licencia de Primera Ocupación) or certificate of habitability, the absence of planning infractions (infracciones urbanísticas) or penalty proceedings, and the conformity of the building to the approved plans, including extensions (veranda, pool, loft conversion), not forgetting special regimes such as coastal, green, or protected areas.
The absence of an occupancy license, unauthorized construction, or an ongoing penalty procedure should be considered real red flags.
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12. Examine the Homeowners’ Association and Common Fees
In Spain, as soon as a property shares a common element (staircase, elevator, pool, garden, shared garage…), it falls under the Ley de Propiedad Horizontal. The buyer automatically becomes a member of the homeowners’ association (comunidad de propietarios).
Community fees (gastos de comunidad) generally cover:
– electricity and water for common areas;
– cleaning, gardening, pool maintenance;
– elevator and maintenance contracts;
– building insurance;
– possible concierge, security, spa, gym services.
Amounts vary a lot:
| Type of property / development | Typical monthly range |
|---|---|
| Small building without pool | €30–€70 |
| Building with pool/gardens | €80–€150 |
| High‑end complex with gym, spa, 24/7 security | €200–€450 (and up) |
| Detached villa without association | €0 |
| Villa in a development with a few services | €30–€100 |
Key points to check with your lawyer and/or the community administrator:
Before buying, demand from the seller a certificate of no outstanding debts to the association. Consult the minutes (actas) of the last 2–3 general meetings to spot major works or disputes. Ask about the existence of any derramas (exceptional assessments) voted or planned, as well as the level of the reserve fund. Finally, read the co-ownership bylaws (estatutos) for rules on tourist rentals.
Important: In Spanish law, community debts and certain local taxes follow the property, not the owner. If these debts are not settled at signing, the new buyer can be held responsible.
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13. Scrutinize Annual Taxes: IBI, IRNR, Rent, Wealth
Buying also means accepting Spanish taxation over the long term. A non‑resident may face several taxes related to their property.
IBI – Local Property Tax
– Due by every owner, once a year.
– Calculated on the cadastral value (not the purchase price).
– Typical rates: 0.4 to 1.1% of that value, depending on the municipality.
– Typical amount: from €200 to €1,500/year; a €350,000 apartment might pay €500–€700/year.
IRNR – Non‑Resident Income Tax
– If the property is not rented out, Spain considers it produces a deemed income (imputed income).
– Tax base: 1.1% or 2% of the cadastral value depending on whether it has been recently revised.
– Rate: 19% for EU/EEA residents, 24% for non‑EU.
– If the property is rented out, you declare the rents received:
– EU/EEA: 19% on net income (after allowed deductions)
– Non‑EU: 24% on net income (deductions possible since 2024).
Declarations are made using Modelo 210, either quarterly or annually depending on the case.
Municipal Capital Gains (Plusvalía) and Resale Capital Gains
– On resale, there is a Plusvalía Municipal (tax on the increase in land value) and a capital gains tax.
– Plusvalía: calculated on the increase in land value since the last sale, using municipal coefficients.
– IRNR Capital Gains: 19% for non‑resident EU, 24% for non‑EU, with a 3% withholding on the sale price.
Wealth Tax and “Solidarity Tax” on Large Fortunes
– Wealth Tax (Impuesto sobre el Patrimonio): thresholds and rates vary by region. Generally, the exemption starts at around €700,000 per person, but some communities (like Catalonia) apply different thresholds.
– Solidarity Tax on Large Fortunes: applies to net assets exceeding €3 million, with a scale of 1.7 to 3.5%.
For any significant wealth, it is prudent to consult a Franco‑Spanish or international tax specialist to optimize the ownership structure (personal, corporate, split ownership…).
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14. Secure the Reservation Contract
Once your offer is accepted, the agent or seller usually offers a reservation contract (reserva). It serves to take the property off the market for a short period.
Common features:
The deposit (or earnest money) secures a promise to buy: amount, holding, and content to know.
Often between €3,000 and €10,000, depending on the property value.
Entrust the funds to an agency, lawyer, or escrow account (ideally). Avoid leaving them with the seller alone.
Exact description of the property, price, validity period, and conditions for refund in case of a legal problem or loan refusal.
Your lawyer must check that it clearly states:
– the grounds for refund of the deposit (e.g., unfavorable due diligence, loan denied, unclear title);
– the deadline to move to the arras contract;
– the total price and conditions (furnished, included appliances, etc.).
A reservation deposit that is too high or unregulated can become tricky if the seller or agency proves inflexible upon discovery of major problems.
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15. Understand and Carefully Negotiate the Arras Contract
The arras contract (contrato de arras) is the true legal pivot of the transaction. It is a private contract by which you generally pay 10% of the price (possibly deducting the reservation already paid) and which makes the sale firmly binding.
Two main types exist:
– Arras penitenciales: if you withdraw, you lose the deposit; if the seller withdraws, they must return double.
– Arras confirmatorias: the deposit is a simple advance; in case of breach, the other party can demand specific performance or damages.
Points to verify imperatively with your lawyer:
The preliminary agreement must specify the type of arras (penitential or confirmatory), the signing deadline at the notary taking into account your steps, the suspensive conditions (loan, clearance of charges, licenses), the list of included items (furniture, appliances, fixtures), the apportionment of expenses (taxes, IBI) at the transfer date, and penalty clauses for delay or failure to perform.
A clear financing clause is recommended for any purchase with a mortgage: it conditions the validity of the sale on obtaining a loan within reasonable parameters.
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16. Understand the Real Role of the Spanish Notary
The notario is a key player but often misunderstood by foreign buyers. Unlike a French notary, they are not your personal advisor.
Their main role:
The notary in Spain must verify the identity, capacity, and powers of the signatories, ensure the content of the deed complies with the law, obtain an up-to-date Nota Simple on the day of signing, read the deed (Escritura Pública) aloud ensuring understanding by all parties, authenticate the transaction with their signature and seal, then transmit the deed to the Property Registry for registration.
What they do not do:
– Negotiate the price or commercial terms
– Study the structural condition of the property in detail
– Verify all tax, planning, or rental risks
In summary, they guarantee the formal and legal security of the deed, but not the economic quality of your investment. Hence the importance of a lawyer.
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17. Check the Energy Performance Certificate (EPC)
For several years, any sale in Spain must be accompanied by an Energy Performance Certificate (Certificado de Eficiencia Energética – CEE). It:
– rates the property from A to G based on primary energy consumption and CO₂ emissions;
– has a validity of 10 years, except a G rating which may require more frequent renewal;
– must be registered with the competent authority of the autonomous community;
– must be communicated before signing, and its registration number is required by the notary.
Since summer 2025, a valid certificate is also required for:
– bank appraisals used for mortgages or refinancing;
– certain grants and “green” loans.
Property listings must display the energy rating. The absence of an EPC or registration number can lead to fines of €300 to €6,000 and block a sale at the notary.
In the medium term, European legislation provides for a progressive increase in the minimum level to sell or rent (target at least E, then D), making energy efficiency all the more strategic for a property investment.
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18. Inspect the Physical Condition: Structure, Installations, Hidden Defects
In densely built areas or for older homes, an independent technical inspection is a prudent investment. The report should examine:
The assessment should include: the condition of the structure (cracks, subsidence, dampness, leaks), the roof and waterproofing, electrical and plumbing installations, heating/air conditioning systems, and for single-family homes: drainage, retaining walls, pools, etc.
Spanish law provides deadlines to act in case of hidden defects after purchase, but proving a serious defect without a prior report can be complex. A pre‑purchase inspection allows you either to renegotiate the price or to walk away if the problem is major.
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19. Verify IBI, Fees, Utilities, and Insurance Before Signing
Just before going to the notary, your lawyer must have updated evidence that:
The IBI (property tax) has been paid for the current year or prorated at signing, with no arrears. Community fees are settled (certificate of no debt). Electricity, water, and gas bills are up to date with active contracts. Building insurance is mandatory, especially for apartments.
In Spain, certain debts follow the property. If these points are not well framed in the deed and supported by documentation, it is the new buyer who may end up facing claims.
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20. Inform Yourself About Rentals: Tenant Rights and Tourist Licenses
If your project includes short‑term rentals (Airbnb, vacation rentals) or long‑term rentals, it is crucial to know:
– the regulations of the autonomous community (each region sets its own tourist rental license regime);
– the requirements of the town hall (registration, license caps, moratoriums…);
– the internal rules of the homeowners’ association: more and more assemblies vote to ban or restrict tourist rentals.
Since the housing law reforms of 2026, tenant rights have been strengthened, making the termination of certain leases more complex. Additionally, booking platforms must now verify the registration numbers of tourist accommodations.
Before buying “to rent out”, your checklist should include:
– written confirmation of the legal possibility to rent as you intend;
– existence, validity, or possibility of obtaining a tourist license (if required);
– absence of a specific prohibition in the community bylaws.
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21. Understand the Importance of AML and Fund Traceability
Spain has strengthened its controls in terms of anti‑money laundering (AML) and know your customer (KYC), especially for non‑residents. Concretely:
Banks, notaries, agents, and lawyers must identify the ultimate beneficial owner (UBO) when the buyer is a company or trust; the source of funds must be demonstrated (salaries, sale of a property, savings, dividends, etc.); transfers from jurisdictions on the FATF grey list are viewed with great suspicion.
Real estate professionals
Before even reserving a property, it is therefore prudent to gather: prudent to gather
– detailed bank statements;
– proof of savings and previous sales;
– tax returns translated and apostilled (often for 2–3 years).
A vague or incomplete file can delay, or even block, signing at the notary.
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22. Plan the Timeline: Due Diligence, Reflection, Signing
A complete due diligence (titles, planning, tax, community, rentals) generally takes 5 to 15 business days, depending on the responsiveness of town halls, registries, and property managers. For large older properties, this timeframe can be longer.
On the mortgage side:
Get pre‑approval from 2–3 banks within 1 to 2 weeks to know realistic LTV and rates, receive the prudential documents (FEIN, FiAE) before final signing, and respect a reflection period of at least 10 days between their delivery and the signing of the mortgage at the notary.
Your timeline should therefore include:
1. Obtaining the NIE 2. Opening an account and building the loan file 3. Legal and technical due diligence 4. Signing the arras with a deadline compatible with the previous steps 5. Signing the purchase deed and, if applicable, the mortgage
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23. Verify Who Signs: Powers, Estates, Companies
Before any signing, your lawyer must ensure that the person selling has the authority to do so:
Multiple co‑owners must all sign or be represented; in the case of an estate, the deeds must be complete and registered; if the seller uses a power of attorney, it must be valid, recent, not revoked, and express regarding the sale; if the seller is a company, the representation powers (articles of association, decision of the competent body, director’s certificate) must be up to date, with apostille and translation if necessary.
An irregularity of this type can call into question the validity of your title of ownership.
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24. Ensure Registration and Post‑Purchase Formalities
Once the Escritura is signed, the work is not over. Your lawyer or the gestor must:
Post‑purchase formalities for real estate in Spain must be completed within this 30‑day period for payment of ITP or VAT + AJD.
You should request to receive a copy of the registered title (Registry certification) once all these formalities are completed: this document is the definitive proof in the long term.
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25. Summarize Your Checklist Before Buying in Spain
Without providing an exhaustive list in the text, a good reflex is to ask yourself, before going further:
Before buying in Spain, you must verify several key points: have precisely calculated your down payment and total costs (10–13% on average), your eligibility for financing according to Spanish criteria, obtained your NIE and opened a local bank account, hired an independent specialized lawyer, checked the consistency of the Nota Simple, the Cadastre, and municipal data, ensured that local taxes and community fees are up to date, that the property has all licenses and a registered EPC, that the arras contract protects your interests with suspensive conditions and realistic deadlines, and that the chosen notary has received all documents on time to verify the legality of the transaction.
By methodically validating these 25 points, you turn a property purchase project in Spain into a structured operation: appropriate financing, anticipated taxation, controlled legal risks. Spain remains a very open market for international investors, but it demands a discipline of verification that many underestimate. A rigorous checklist, a competent lawyer, and good banking preparation make all the difference between a worry‑free purchase and a never‑ending headache.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
