Legal Checklist for Foreigners Buying Property in Spain: Complete Guide 2025

Buying your first home in Spain as a foreigner can feel like navigating a bureaucratic maze. With this legal checklist, you'll transform a potentially stressful experience into a clear and predictable process. I'll guide you step by step, sharing insights gained from helping hundreds of international buyers secure their Spanish home.

5 Essential Documents You Need Before Starting the Purchase

Having the correct documentation from the outset makes all the difference between a smooth purchase and months of costly delays. Here are the documents you should prepare:

Identification and Financial Proof

• Valid NIE (Número de Identificación de Extranjero): This identification number is your key to operating legally in Spain.
• Valid Passport: Verified and with at least 6 months of validity remaining.
• Bank Certificate: Demonstrating sufficient funds for the transaction.
• Sworn Translations: Mandatory for documents not issued in Spanish.

If you are a non-EU citizen, you will need these documents 30 days in advance to avoid delays in the signing process.

Bank Account and Source of Funds Certification

• Spanish Bank Account: Essential for transfers and direct debits.
• Declaration of Source of Funds: Documents justifying the legal origin of the money.
• Updated Nota Simple (Land Registry Filing): Reveals hidden charges such as outstanding mortgages or liens.

Practical Tip: Request the nota simple before negotiating the price. This way, you can uncover potential charges that justify a reduction in your offer.

Crucial Legal Differences Between EU and Non-EU Buyers

The process varies significantly depending on your nationality. This table highlights the main differences:

Non-EU buyers need to certify the source of funds with more extensive documentation to comply with anti-money laundering regulations.

The Purchase Process: Exact Timeline and Phases

The purchase is structured in clearly defined stages. This is the real timeline you will experience:

1. Property Reservation and "Arras" Contract (1-2 weeks)

The process begins with a reservation deposit, usually representing 5-10% of the total value. This payment temporarily "freezes" the property while you verify all the documentation.

The "arras" contract establishes:

• Exact deadlines for the final signing.
• Conditions for the return of the deposit.
• Potential penalties for non-compliance.

Real Case: A foreign client paid a €15,000 "arras" deposit. We included a protective clause that allowed him to fully recover this amount if his bank did not approve the mortgage. Three weeks later, when the bank rejected his loan application, he got all his money back thanks to this foresight.

2. Legal Due Diligence (3-4 weeks)

This critical phase includes:

• Thorough verification of the actual ownership.
• Checking for any outstanding debts with the community of owners.
• Certification of the absence of urban planning infractions.
• Validation of energy performance certificates and habitation certificates.

3. Signing at the Notary (1 day)

The signing before a notary public lasts approximately 45 minutes. You will receive two copies of the title deed: one for property registration and one for your personal records.

Essential elements to review in the title deed:

• Exact details of the property (cadastral reference, square meters).
• Confirmed absence of undeclared charges.
• Specific date for the handover of keys.
• Responsibilities for any outstanding community fees.

4. Property Registration (2-4 weeks)

The process concludes with registration at the Land Registry, which grants you full legal security as the owner.

The entire process usually takes 3 months. Planning with this timeframe in mind will allow you to adequately coordinate payment dates, paperwork, and any potential move.

How to Choose the Right Property: Investment Analysis Checklist

Beyond emotional aspects, your choice should be based on objective criteria that guarantee both personal satisfaction and long-term profitability.

Key Location Factors

The area where you buy defines 70% of the future value. Evaluate these key elements:

• Accessibility: Distance to hospitals, supermarkets, and public transport.
• Revaluation Potential: Analysis of urban development trends in the last 5 years.
• Rental Demand: Especially relevant if you are looking for rental income.

Common Mistake to Avoid: Choosing solely based on price. A property in a new development far from essential services may seem cheap, but its revaluation will be significantly slower.

Real Budget: Beyond the Purchase Price

Your total investment must consider these additional costs:

Practical Tip: Compare at least 5 options in similar locations. The price difference between them will reveal the true market value of the area.

5 Essential Tips for International Buyers

Effective Preparation for In-Person and Virtual Viewings

Maximize the information you get from each visit with these strategies:

• Create a basic inspection kit: flashlight, measuring tape, and level.
• Schedule two visits at different times of the day to assess light and ambient noise.
• For virtual visits, request a 360° recording with high-definition zoom.

Ideal Time to Visit: After a rainy day, you will be able to identify potential leaks that would go unnoticed on dry days.

Detection of Hidden Defects

Meticulously check these critical elements:

• Water pressure in all taps (indicates the condition of the pipes).
• Baseboards of doors (reveal structural dampness).
• Condition of the electrical panel (anticipates potential costly repairs).
• Persistent odours (may indicate ventilation problems).

Real Case: A client almost acquired a seemingly perfect penthouse. On the second visit, we detected exposed wires behind a panel. The complete repair of the electrical system cost €8,000, an unforeseen expense that could be negotiated in the final price.

Always request the updated energy performance certificate. Many old properties have a G or F rating, which will significantly increase your monthly heating and cooling costs.

Your Next Step: Personalised Advice

Each property purchase has unique characteristics depending on your nationality, financial situation, and objectives. Personalised advice makes the difference between a secure investment and future complications.

Our team specialised in international transactions can:

• Review your specific documentation.
• Analyse the tax implications according to your country of origin.
• Coordinate the entire legal process at a single point of contact.

Ready to take the next step towards your home in Spain? Request a free initial consultation where we will analyse your particular case and answer all your questions.

Request a Free Consultation

Frequently Asked Questions About Buying Property for Foreigners

What documents do I need to buy a house in Spain as a foreigner?

You will need your valid NIE, original passport, proof of funds (bank statements), and a declaration of the source of the money. If you are a non-EU citizen, some banks require a Spanish bank account to be opened before signing the title deed.

Is it mandatory to hire a lawyer for the purchase?

Although not legally mandatory, it is highly recommended to work with a specialised advisor. A professional reviews property charges, verifies the absence of outstanding debts, and confirms that the title deed accurately reflects what was agreed, protecting you from costly surprises.

How does the "arras" contract work in a sale?

It is an agreement where you reserve the property with a deposit (usually 10% of the value). If you withdraw, you lose the deposit. If the seller defaults, they must return double the amount. We recommend signing it before a notary for greater legal security.

What taxes do I have to pay when buying my first home?

It varies depending on the autonomous community. Generally, you will pay ITP (Property Transfer Tax) between 6-10% of the sale price, or VAT if it is a new property (10%, 4% in the Canary Islands). Also add notary and registration fees (1-2%).

Do I have to travel to Spain for the entire process?

Not necessarily. We can organise virtual viewings and manage preliminary documentation remotely. However, for the final signing at the notary, you will need to be physically present or grant power of attorney to a legal representative.

How do I verify that the property has no debts?

We request the "nota simple" from the Land Registry, a document that shows mortgages, liens, or pending charges. In addition, we verify the IBI (Property Tax) receipt to confirm that municipal taxes are up to date.