Legal / Requirements
Understanding Taxes & Legal Requirements.
Purchasing a home in Spain is a secure and transparent process — but to do it right, it’s essential to understand the legal framework and the taxes involved. This guide explains the key legal steps, purchase costs, and post-sale obligations for buyers on the Costa del Sol, whether you’re an EU or non-EU resident.
01/
The Legal Framework: Safe and Regulated
Spain offers one of the most buyer-friendly property systems in Europe. As a foreigner, you have full ownership rights, and the process is regulated to ensure security for both buyer and seller.
To buy property in Spain, you’ll need:
An NIE number (Número de Identificación de Extranjero), which is a tax ID for foreigners.
A Spanish bank account to pay purchase-related costs and taxes.
A lawyer (abogado) who will represent your interests and carry out full legal due diligence.
While using a lawyer is not legally mandatory, it is strongly recommended — especially for international buyers.
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Legal Due Diligence: What Your Lawyer Does
Your lawyer ensures the property is legally sound and free of hidden issues. This includes:
Verifying ownership and title deed in the Land Registry (Registro de la Propiedad)
Checking for outstanding debts, mortgages, or charges
Confirming building licenses and zoning compliance
Reviewing the cadastral (tax registry) records and community costs
Drafting or reviewing the private purchase contract (Contrato Privado de Compraventa)
If you are not in Spain during the process, your lawyer can act on your behalf with a Power of Attorney.
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Taxes When Buying a Property in Spain
There are two main tax scenarios depending on the type of property:
If you’re buying a resale property:
Transfer Tax (ITP): 7% of the purchase price in Andalusia (standard rate for all buyers).
If you’re buying a newly built property from a developer:
VAT (IVA): 10% of the purchase price
Stamp Duty (AJD): 1.2% of the purchase price (Andalusia rate)
Your lawyer will confirm which applies in your case and calculate it based on the official declared value.
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Additional Purchase Costs
Beyond the purchase price and taxes, several additional costs must be considered:
Notary fees: Typically between €500 and €1,000
Land Registry fees: Around 0.5% of the property value
Legal fees: Usually 1% of the purchase price (+VAT)
Mortgage costs (if applicable): Valuation, arrangement fee, and stamp duty on the loan
As a general rule, you should plan for 10% to 13% on top of the property price to cover all taxes and costs.
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Annual Property Ownership Taxes
Owning a home in Spain also comes with ongoing tax responsibilities. These include:
IBI (Impuesto sobre Bienes Inmuebles): A local property tax paid annually to the town hall — calculated based on the cadastral value
Basura: A local rubbish collection tax (typically a few hundred euros per year)
Non-Resident Income Tax: Applies if you are not fiscally resident in Spain and either rent the property out or use it yourself. Even unused homes are taxed on a notional rental value.
Your accountant or legal advisor can help you register with the local authorities and set up direct debit payments for these taxes.
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Legal Timeline for the Purchase Process
A standard property transaction in Spain takes 6 to 12 weeks, though this can vary depending on financing and legal checks.
Typical stages:
Reservation agreement signed and deposit paid (property taken off the market)
Due diligence and contract drafting
Private purchase contract signed with a 10% deposit
Completion at the notary — deed signed, taxes paid, keys handed over
Registration in the Land Registry
If you’re financing the property, your mortgage bank will also be involved in the final notary process.
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Important Notes for Non-Residents
Spain welcomes foreign buyers, but it’s important to be aware of these legal and fiscal obligations:
Declare your property with the Spanish Tax Authority if you are a non-resident
Register for utilities in your name post-purchase
Take out home insurance (required if you are getting a mortgage)
Ensure compliance with short-term rental laws if you plan to let the property on platforms like Airbnb
At Solvista, we connect you with trusted legal, tax, and property management professionals so that nothing is left to chance.
Why / choose us
Our Legal & Tax Guidance.
Because you deserve clarity, protection, and expertise at every step.
We partner with experienced lawyers, tax advisors, and financial experts to ensure your property purchase is fully secure — with no surprises. From due diligence to post-sale obligations, we handle the details so you can focus on enjoying your new home.
Our / services
What we can do for you.
01.
Legal Representation
Independent lawyers to handle contracts, due diligence, and property registration.
02.
NIE & Bank Account Setup
Support with obtaining your Spanish tax ID and opening a local bank account.
03.
Tax & Fiscal Guidance
Access to accountants who specialise in non-resident property tax, annual returns, and rental income declarations.
04.
Mortgage & Financial Advisory
Assistance with mortgage applications and financial planning through Spanish or international banks.
05.
Post-Sale Support
Help with registering utilities, arranging insurance, and setting up tax payments.
Got / questions?
We’ve Got Answers.
While not legally required, having an independent lawyer is strongly recommended. They handle due diligence, draft contracts, and ensure the property is fully legal and free of debts.
An NIE (Número de Identificación de Extranjero) is a foreigner’s tax ID required for property purchases. Your lawyer can help you apply for it, even by Power of Attorney if you're abroad.
It depends on the property type:
– Resale properties: 7% Transfer Tax (ITP)
– New builds: 10% VAT (IVA) + 1.2% Stamp Duty (AJD)
Besides taxes, expect notary and registry fees (1–2%), legal fees (around 1%), and mortgage-related costs if applicable. Overall, plan for 10–13% on top of the purchase price.
Homeowners pay:
– IBI (local property tax)
– Basura (rubbish collection fee)
– Non-resident income tax, even if the property isn’t rented out
Yes, but short-term rentals require a tourist licence. Your lawyer or local advisor can help you apply and ensure compliance with local regulations.
No. With a Power of Attorney, your lawyer can manage the entire process on your behalf — including signing contracts, obtaining an NIE, and finalising the purchase.
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