Buying property in Spain as a non-resident — key steps

Yes — and in significant numbers. Spain places no restrictions on foreign property ownership. Citizens of any nationality may purchase residential or commercial property freely. Non-EU buyers may even qualify for the Golden Visa programme, which grants Spanish residency in exchange for a qualifying real estate investment of €500,000 or more.

The Costa Blanca in particular has one of the most internationally experienced conveyancing and legal ecosystems in Spain. Solicitors, notaries, estate agents and mortgage brokers with English, German, Dutch and Scandinavian language capability are widely available — making the process considerably more accessible than navigating a foreign legal system in an unfamiliar language.

The NIE (Número de Identificación de Extranjero) is a Spanish tax identification number. You will need it before signing any property contract, opening a Spanish bank account or completing any financial transaction in Spain.

There are two main routes to obtaining an NIE:

• At a Spanish consulate in your home country: Applications can be submitted before travelling to Spain. Processing times vary by consulate but are typically 2–4 weeks.
• At a designated police station in Spain (Oficina de Extranjeros): The most efficient route if you are already in Spain. An appointment must be booked online in advance. Your Spanish solicitor can often manage this process on your behalf via power of attorney.

Many buyers grant their Spanish solicitor power of attorney for the NIE application and subsequent property purchase, allowing the entire process to proceed without the buyer needing to be physically present in Spain throughout.

A Spanish bank account is required for completing a property purchase and for ongoing ownership costs (mortgage payments if applicable, utility direct debits, IBI property tax). The major banks with strong English-language services on the Costa Blanca include Sabadell, CaixaBank, BBVA and Santander.

Non-residents can open a cuenta no residente (non-resident account) with standard identification documents — passport, NIE and proof of address in your home country. The process typically takes one to two weeks. Many banks now offer pre-approval online, with a branch visit to complete verification.

Once you have agreed a purchase price with the seller, the process formally begins with a reservation contract:

• Reservation contract: A brief document removing the property from the market in exchange for a reservation deposit — typically €3,000–€6,000. At this stage, both parties have a short window (usually 2 weeks) to carry out initial due diligence.
• Private purchase contract (Contrato de Arras): The main pre-completion contract. Buyer pays a further deposit — typically 10% of the purchase price. If the buyer withdraws, the deposit is forfeited. If the seller withdraws, they must return double the deposit.
• Completion (Escritura): The formal transfer at the notary's office, where the remaining balance is paid and ownership transfers.

Thorough legal due diligence is essential before exchanging contracts. Your Spanish solicitor should verify:

• Land registry (Registro de la Propiedad): Confirms legal ownership, property boundaries and any registered charges, debts or encumbrances on the property.
• Catastro: The official property cadastre confirming the property's registered size, classification and cadastral value (used for calculating IBI property tax).
• Building licences and habitation certificate: Verifies that all construction and extensions were legally permitted and that the property has a valid certificate of occupancy (cédula de habitabilidad).
• Outstanding community fees or debts: Sellers must clear any outstanding community charges before completion. Your solicitor should obtain a certificate confirming no debts exist.
• IBI receipts: Confirmation that annual property taxes are paid to date.
• Energy performance certificate (EPC): Required by law for all property sales in Spain.

Budget for total purchase costs of 11–14% above the agreed purchase price. Key components:

Ongoing annual costs after purchase include IBI property tax (€300–€2,000/year depending on cadastral value), community fees if applicable (€50–€300/month), and non-resident income tax (IRNR) if you do not reside in Spain for 183+ days per year.

Spanish mortgages are available to non-residents from major Spanish banks. Key considerations:

• Maximum loan-to-value: Typically 60–70% for non-residents, versus 80% for Spanish tax residents.
• Interest rates: Both fixed and variable rate products are available. Spanish mortgage rates are generally competitive within the European market.
• Mortgage terms: Up to 25–30 years, typically subject to a maximum age of 70–75 at the end of the mortgage term.
• Required documentation: Recent income evidence (payslips or tax returns), bank statements, existing mortgage or rental evidence, and a Spanish bank valuation of the target property.
• Currency risk: Buyers earning in non-Euro currencies should consider currency hedging strategies to manage exchange rate exposure over the mortgage term.

The final transfer of ownership takes place at the notary's office (notaría). Both buyer and seller (or their legal representatives via power of attorney) must be present. The notary reads the deed aloud, both parties sign, and the remaining purchase balance is transferred — typically via bankers' draft or international wire transfer confirmed in advance.

At completion, you will receive the keys and the original signed escritura. The notary registers the transaction with the Land Registry within days. Your solicitor will manage payment of transfer taxes and registration of the new ownership on your behalf.

Once completion is complete, several practical matters require attention:

• Utilities: Electricity (Iberdrola or Endesa), water and internet accounts should be transferred into the new owner's name. Your solicitor or agent can facilitate this.
• Property insurance: Buildings insurance is typically required by mortgage lenders and strongly advisable for all owners. Contents insurance provides additional protection for furnished rentals.
• Rental licence: Properties let for holiday rental in the Valencia Region require a tourist rental licence (VUT). The process involves a habitability certificate, technical inspection and registration with the Generalitat Valenciana — a process Ifach Holiday Homes manages on behalf of clients.
• Furnishing: Professional staging and photography are essential for maximising rental performance. Our team provides guidance on furnishing standards that deliver the highest guest satisfaction and revenue.