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Buy a property in Spain

👉 All you need to know about buying a property in Spain after Brexit (or as a foreigner)



First of all, you will need to obtain a NIE. The NIE is the foreign identity number assigned to any person who is going to carry out an economic activity in Spain. Among them, buying a property in Spain after Brexit (or as a foreigner).

Tax Agency registration

Second, you will have to register with the Tax Agency as a Non-Resident or Resident. This procedure will be necessary for the liquidation of taxes.

Bank account

Although it is not mandatory to have a bank account in Spain when buying the property, it is highly recommended. The account will be very useful for operational purposes.

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Real Estate Conveyancing

– Should I hire a lawyer to buy a property in Spain?📝

In Spain it is advisable that the purchase-sale is formalized in a public deed before a Notary Public. However, the notary does not intervene in the preliminary stages of the sale.

In addition, some formalities and procedures may be unfamiliar to foreigners. Therefore, we recommend you to have a legal advisor to assist you during the purchase process.

– How long does the procedure of buying a property in Spain after Brexit take? 📅

There is no legal deadline for formalising the purchase. It all depends the agreement with the seller.

– Where should I invest?🌍

Everything will depend on the use you want to give to the property. It is very important to plan before investing. Depending on the use, it may be more attractive to invest in one region or another. Additionally, regulatory and fiscal governance is very decentralized in Spain, so there can be big differences between regions.

– Should I invest as an individual or through a company?🤷‍♂️

It depends on many factors and should be analyzed on a case-by-case basis. Moreover, the different tax implications, expenses, etc. need to be analyzed and planned in advance.

– Do I need to be physically present in Span to buy a property?✈️

No, your presence is not necessary to buy a property in Spain.

The purchase can be made through a representative by means of a power of attorney.

What can we do for you?

– Support throughout the process
– Mediation between the seller/buyer or agent
– Analysis & documents review
– Negotiation of the terms of the contracts
– Advise on the investment
– Clarifying doubts & questions during the process
– Acting through POA on your behalf

Property acquisition process.-

  • 1. Deposit

    First of all, you will be required to submit an offer and make a deposit so that the realtor/seller takes the property off the market. 

  • 2. Purchase Agreement

    Secondly, the agreement is formalized through an "Arras" contract or an "Purchase Option" contract. In these agreements the purchaser commits to buy and the seller undertakes to sell. Additionally, a down-payment is made and the terms and conditions of the purchase are established.

  • 3. Title or Purchase Deed

    This is when the purchase is formalized and when the transmission of the property takes place. The tile or deed of purchase is signed before a notary public’s office.

  • 4. Settlement of Taxes

    It will be necessary to determine which taxes apply to the purchase. The Tax rate to be paid depends on the region in where the property is located.

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  • 5. Registration

    Once the property has been acquired, the deed or title should be registered in the Land Registry. The inscription is not compulsory. However, it is recommendable as it accredits before third parties the ownership of the property and its encumbrances.

  • 6. Notifications

    The purchase should be notified to the different administrations such as the Town Hall, the Cadastral Registry or the Community of neighbours.

  • 7. Supplies

    The purchaser should hire or change the ownership of the different supplies that the property may have. For example water, electricity, etc.

Taxes when buying a property in Spain after Brexit (or foreigners)

Buying and selling real estate

Taxes on the acquisition of a new-built property


The tax applicable when buying a newly built house in Spain is VAT. It is currently 10% of the purchase price throughout Spain.

A newly built home is one that is purchased from the developer after the construction of the property. However, a completely refurbished home can also be considered “new construction” if it meets certain requirements.

In addition, when buying a newly built home in Spain, the buyer must pay VAT directly to the seller. The latter in turn will declare it to the Tax Agency.


This tax is applied to the signing and registration of the deed of sale in the Land Registry.

The tax rate (amount to be paid when buying a house in Spain) is determined regionally, so it will depend on the location of the property. Therefore, buying a house in Madrid is not the same as buying a house in Barcelona (for example).

Buying a property in Spain after Brexit - Second hand homes​

Transfer Tax

This tax is applied when real estate transactions of “second hand” properties are carried out. It is the responsibility of the Autonomous Communities so the applicable tax rate (amount to be paid) varies depending on the region where the property is located.
To determine whether a property is subject to VAT or ITP, you can check it on the website of the Tax Agency.


FAQ's - Buying a property in Spain after Brexit (or as a foreigner)

– How can I verify who is the owner of the property I want to buy?

Something to take into account when buying a property in Spain after Brexit is the ownership of the property prior to the purchase.

The Spanish Land Registry certifies the ownership of a property in Spain.

You can easily access this information by requesting a “Nota Simple” at the corresponding registry.

– I am not a resident in Spain, can I apply for a mortgage to buy a house in Spain?

Yes, you can apply for a mortgage to buy a property in Spain even if you are not a resident.

First of all, it is important to determine in any case what proportion of the purchase amount you need to finance, the term and the currency in which you obtain your income.

Also, there are credit institutions that will only finance if the currency in which you generate your income is in euros, so you should know in advance which banks can finance you.

– What expenses do I have to take into account?

To calculate expenses when buying a property in Spain after Brexit (or as a Foreigner), you have to take into account that there are one-time expenses and recurring expenses. We explain some of them.

One-time payments/expenses at the time of purchase:

1) ITP: 6-%10% of the purchase value. (Depends on the Autonomous Community).
2) Notary: Around 1.500 euros
3) Land registry: Around 1,000 euros
4) Bank commission for the issuance of checks: Around 300 euros
5) Architect: 450 euros, approximately. If you want a technical review of the property by an architect.
6) Lawyer’s fees.

Recurring payments:

1) Home insurance (if you take out insurance).
2) Supplies (water/electricity/gas)
3) IBI (Property Tax)
4) Community of owners (if any)
5) Non Residents Tax. If you lease the property, you will have to present quarterly liquidations in the Tax Agency.

More services.-

Foreigner's ID Number (NIE)

Foreigners with economic, professional or social interests in Spain are required to obtain a foreigner’s identification number (NIE).

The current appointment booking system is overloaded. Therefore, we advise you to plan your investment in advance and as far as possible to start the process before you arrive in Spain.

At Luxton we will help you with this essential procedure to buy a property in Spain after Brexit (or as a foreigner).

Bank account

Having a local bank account is not necessary to buy a property in Spain after Brexit (or as a foreigner). However, having one will make it much easier for you to pay for taxes such as community fees, utilities, etc.

The process for obtaining a non-resident mortgage is very strict and is not always feasible. As a result, it is important to take advise beforehand and understand the legal and tax implications of having a mortgage in Spain. At Luxton we will analyze in advance and put you in contact with different mortgage brokers to determine the viability of your investment.
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