Guide · Buying

Buying a house in Spain: NIE, purchase costs and pitfalls

As of November 2026 · about 8 minutes' read

For German buyers, Spain is one of the most accessible countries in Europe. Foreigners can buy freely, the property portals are full, and on the coast many agents speak German or English. The process itself is manageable. It gets expensive if you misjudge the taxes in the region concerned or buy a house whose extensions were never approved.

Preparation: NIE and a Spanish bank account

Without an NIE (Número de Identidad de Extranjero) you can do nothing in Spain. You need this tax and foreigner identification number for the notary appointment, the bank account, the utilities and every tax return. You apply for it at the police in Spain or through a Spanish consulate in Germany. The fee is low, but you may have to wait weeks for an appointment. So apply for your NIE before you start negotiating seriously.

A Spanish bank account is not always a legal requirement, but in practice you can hardly do without one. Property tax, community fees, electricity and water are usually collected by direct debit from a Spanish account. Banks offer a separate account type for non-residents. For this you need your NIE and a certificate of your non-resident status.

It also makes sense to hire your own lawyer (“abogado”) who works independently of the agent. They check the documents, draw up the preliminary contract and can represent you at the notary with a power of attorney (“poder”) if you cannot travel. The usual fee is about one per cent of the purchase price, often with a minimum amount.

The checks: Nota Simple and more

Before you pay any deposit, check the property. The most important documents:

• Nota Simple: the extract from the land registry (Registro de la Propiedad). It shows the owner, the area, mortgages, seizures and other charges. You can request it online for a few euros through the portal of the Spanish Registradores.
• Cadastral extract: the cadastre (Catastro) records location, area and the cadastral value, on which the property tax is based. If the cadastre, the land registry and reality differ, that is a warning sign. You can get the extract free of charge from the Sede Electrónica del Catastro.
• Proof of payment: the latest IBI property tax bills and a certificate from the owners' community that there are no arrears.
• Permits: building permit, occupancy licence (“licencia de primera ocupación”) or, depending on the region, a “cédula de habitabilidad”, plus the energy performance certificate (“certificado de eficiencia energética”).

From preliminary contract to land registry

1. Reservation. The agent often asks for a small reservation fee so that the property is taken off the market. Agree in writing under which conditions you get it back.
2. Contrato de arras. The preliminary contract with a deposit, usually around 10 per cent of the price. “Arras penitenciales” are common: if you pull out, you lose the deposit. If the seller pulls out, they pay you back double. The contract states the price, the deadline for the notary appointment and the conditions.
3. Escritura at the notary. The actual purchase contract is signed before the notary as a public deed (“escritura pública de compraventa”). The rest of the price is usually paid by banker's cheque or bank transfer, and you get the keys. The notary checks identities and formalities but does not represent your interests.
4. Paying the taxes. As a rule, you must declare and pay the purchase tax within 30 working days of signing. The lawyer or a “gestoría” (an administrative agency) usually takes care of this.
5. Registro de la Propiedad. Only once you are entered in the land registry are you protected against third parties. The notary usually sends the deed electronically, and registration takes a few weeks.

If the seller is not tax resident in Spain, you withhold 3 per cent of the purchase price and pay it to the Spanish tax office (Agencia Tributaria). This is an advance payment on the seller's capital gains tax. If you fail to do this, the property is liable for the amount.

Purchase taxes: ITP or IVA

Which tax applies depends on whether you buy a resale or a new property.

Resale property: you pay the property transfer tax ITP (Impuesto sobre Transmisiones Patrimoniales). The rates are set by the regions. For the regions popular with Germans, these general rates currently apply, roughly:

Dark bar: standard rate or lowest band. Lighter part: higher bands for more expensive properties. As of November 2026, approximate.

• Canary Islands6.5%
• Andalusia7%
• Murcia8%
• Balearic Islands8–13%
• Valencia9–11%
• Catalonia10–13%

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The purchase cost calculator shows what this means in euros for your price and region.

The tax is based on the purchase price, but at least on the Catastro's so-called reference value (“valor de referencia”). If your price is below it, you pay on the higher value.

New build from a developer: instead of ITP you pay VAT (IVA), which is 10 per cent for flats and houses. On top of that comes stamp duty AJD (Actos Jurídicos Documentados), about 0.5 to 2 per cent depending on the region. In the Canary Islands, the local IGIC tax with lower rates applies instead of IVA.

Together with notary, land registry, lawyer and gestoría, you should expect purchase costs of about 10 to 13 per cent for a resale property. The article Costs and taxes for a holiday home abroad compares this in detail.

Running costs after the purchase

• IBI: the municipality's annual property tax. It is calculated as a percentage of the cadastral value, and the municipalities set the rate themselves within a legal framework. There is usually also a waste collection charge (“basura”).
• Comunidad: in residential complexes you pay community fees monthly or quarterly for the pool, garden, lift and management. Before you buy, ask to see the latest minutes of the owners' meetings. They show any planned special levies.
• Tax as a non-resident: even if you only use the house yourself, you pay non-resident income tax (IRNR) every year on a notional rent. More on this in the article Holiday home in Spain.
• Plusvalía municipal: a municipal tax on the increase in the value of the land, due when the property is sold. In principle the seller pays it. If the seller is a non-resident, the law makes the buyer liable. Agree in the contract who pays, and withhold the amount if necessary.

The typical pitfalls

• Illegal buildings. Pools, guest houses or extended terraces without a permit are common in the countryside and on the coast. Houses on land that may not be built on (“suelo rústico” or “no urbanizable”) are particularly risky. Without an occupancy licence you sometimes cannot get a regular electricity or water connection, and in the worst case you face a demolition order. Check at the town hall (“ayuntamiento”) that everything has been approved. In Andalusia there is a procedure for tolerating older buildings (“AFO”), but it does not fully legalise them.
• The area is wrong. The listing, the Catastro and the land registry often give three different figures. What counts for you is what is registered and approved.
• Debts of the previous owner. Arrears on IBI and Comunidad partly pass to you with the property. Get the certificates before the notary appointment.
• Price recorded too low in the deed. Paying part of the price “under the table” seems to save tax, but when you sell later you pay tax on a higher gain and risk penalties. Do not agree to it.
• Assuming you can let it. If you are counting on rental income, check beforehand whether holiday letting is allowed. Many municipalities and residential complexes now restrict it.

This article gives a general overview and is not a substitute for legal or tax advice. Tax rates and rules change, and in Spain they also vary by region. Check them with a local lawyer or tax adviser before you buy.