If you are buying a property in Spain, you will first need to obtain a Número de Identificacion de Extranjeros (NIE) number from the local police station or from the Spanish embassy in London. There are also companies in Spain who will do this for clients for a fee.

The NIE number is the Spanish tax identification number assigned by the Spanish authorities to any foreigner, it is a legal requirement prior to working in Spain, purchasing a property, selling a property, obtaining a mortgage, starting a company, etc…

The NIE is a personal, individual and unique identification number and regardless of whether you plan to live in Spain permanently, rent for a short period or just buy a property you must fist obtain a NIE number.

This process can take some time, and it needs to be obtained before a Spanish mortgage offer is issued.

Once you have your NIE you will also be required to open a Spanish bank account in order to obtain a Spanish mortgage. This account will be used to pay all the expenses during the mortgage application and monthly mortgage repayments.

The Buying Process

  1. The Preliminary Contract – the first stage in purchasing a property in Spain is to agree with the seller on a purchase price. Then in order to take the property off the market and reserve a preliminary contract is drawn up. This is called a Contrato privado de compraventa and it contains all the details of the property, along with the agreed purchase price. At this time you will generally pay a deposit of around 10% of the final purchase price which will be held in a bonded account until the purchase is complete
  2. The Final Contract – when the purchase is complete, the purchase price (minus the deposit) and all fees must be paid. The final contract, or Escritura de compraventa, is then signed. You then receive the public deed for the property which must be witnessed by a Notary public. A copy of this deed will be given to the tax office and property registry.
  3. Fee Payment – the buyer and seller both have fees which they will be responsible for.
    1. Buyers Fees:
      1. Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP) for pre-owned properties
      2. IVA and Stamp duty for newly constructed homes
      3. Notary fees
      4. Lawyer/Solicitors fees
      5. Bank’s property Valuation fee

23 Apr 2023


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