The process of buying property in Spain differs from what people are used to
in Estonia and many other countries.
Below are the main legal requirements and additional costs to take into account.

1. NIE Number (Foreigner Identification Number)

To acquire property in Spain, you need an NIE number (Número de Identificación de Extranjero),
which is the tax identification number for foreigners. 

With this number, you can:

• Open a bank account in Spain
• Sign the notarial deed of sale (escritura pública)

         You can apply for an NIE:

• At a Spanish police station
• At a Spanish embassy or consulate in your home country
• Through an authorized representative with a power of attorney

The processing time depends on the region in Spain.

Costs in Addition to the Purchase Price

Lisaks ostuhinnale – mis on tavaliselt ostja ja müüja vahel kokku lepitud – tuleb ostjal arvestada
täiendavate kuludega umbes 10–15% ulatuses. Nende hulka kuuluvad:

• Transfer tax (for resale properties)
• VAT and stamp duty (for new properties)
• Notary and land registry fees
• Legal service fees
• Mortgage arrangement fees (if financing is used)

Important: Spain consists of 17 autonomous regions and more than 8,000 municipalities,
so taxes and fees may vary depending on the location. For accurate information, it is advisable to consult the local
authorities or a qualified legal advisor.

3. Detailed Overview of Taxes and Fees

• Transfer Tax (Impuesto de Transmisiones Patrimoniales – ITP):
  Applicable when purchasing a resale property, typically ranging from 7–11% of the purchase price,
  depending on the region.
• VAT and stamp duty (for new properties)
  For new builds, 10% VAT applies.
• Stamp Duty (Actos Jurídicos Documentados – AJD): Paid together with VAT when purchasing new properties; usually around 1.5%.
• State-regulated fees that generally range between €500–€2,000, depending on the property’s value and location.
• Legal Fees: Usually around 1% + VAT of the purchase price, but may vary based on the complexity of the contract and the chosen lawyer.
• Mortgage Arrangement Fees: Spanish banks typically charge about 1% of the mortgage amount for setting up a loan.
• Property Tax (Impuesto sobre Bienes Inmuebles – IBI): An annual local municipal tax ranging from 0.5–1.2% of the cadastral value. This applies even if the owner is not a Spanish resident.
• Utility Connection Fees: Upon property transfer, there are often costs for re-registering or reconnecting utilities such as electricity, water, sewage, and gas.

4. How the Property Purchase Process Works in Spain

Buying property in Spain is a structured process involving several legal and financial steps.
Below is a step-by-step overview of what a buyer should know and be
prepared for.

1. Reservation Agreement
Once the buyer, seller, and real estate agent have reached an agreement,
a Reservation Agreement is signed, which includes:

• The agreed purchase price
• The expected handover date of the property
  At this stage, the buyer pays a reservation fee, usually ranging between €6,000 and €20,000.
  This amount ensures that the property is taken off the market.

2. Private Purchase Contract (Contrato de Compraventa)
When the private purchase contract is signed, the buyer pays a deposit—usually 10%
of the purchase price—minus the previously paid reservation fee.
The contract specifies:

• The payment schedule
• Deadlines
• All agreed terms and conditions

3. Additional Costs
In addition to the purchase price, the buyer should budget for approximately 10–15% in additional costs, which include:

• Transfer Tax for resale properties (7–11%)
• VAT (10%) and Stamp Duty (approx. 1.5%) for new properties
• Notary and Land Registry fees (€500–€2,000)
• Legal fees (around 1% + VAT)
• Mortgage arrangement fee if financing is used (about 1% of the loan amount)
  These costs can vary depending on the region and whether the property is new
  or resale.

4. NIE Number (Número de Identificación de Extranjero)
To own property in Spain, a foreign buyer must obtain an NIE number,
which is a tax identification number. This is required for:

• Opening a bank account in Spain
• Signing the notarised purchase deed
  You can apply for an NIE:
• At a Spanish police station
• At a Spanish embassy or consulate in your home country
• Through an authorized representative with a power of attorney
  The usual processing time is 4 to 6 weeks, depending on the region.

5. Handover of Possession and Keys

The time between signing the reservation agreement and the property handover date can vary,
although it is often possible to agree on an expedited completion.
On the day of completion, once all payments have been made and the notarised deed has been signed, the buyer receives the keys and can move in

6. Notary (Notario Público)

The notary is a government-appointed legal official whose role is to:

• Verify the identity of all parties involved
• Confirm that the seller has the legal right to sell the property
• Ensure that all payments comply with Spanish law
• Check whether the property has any debts or encumbrances
• Prepare the purchase deed (escritura pública), which will be submitted to the Land Registry

Important: The notary does not inspect the physical condition of the property.

7. Buyer’s Responsibility to Inspect the Property

Under Spanish law, resale property is sold “as is”.
It is the buyer’s responsibility to inspect the property before signing the contract.
Any necessary repairs or special conditions should be included in the contract.
We recommend using an independent technical architect — we can recommend
reliable specialists if needed.

8. Registration of Ownership

Once the purchase deed is signed before the notary and all taxes and fees are paid,
it is submitted to the Land Registry (Registro de la Propiedad). Registration usually takes 2–3 months.
After registration, the buyer receives:

• The original deed
• An official ownership certificate

This guide explains the key steps, costs, and legal obligations involved in buying property in Spain.
We recommend engaging a professional lawyer to ensure the transaction is carried out smoothly and securely.
If you do not already have one, we can assist you in finding a trusted legal representative.