Buying a property in Spain is an exciting process and, at the same time, an important decision that requires an understanding of certain legal aspects. If you are a foreign buyer, it is essential to understand what documentation is required and which administrative steps must be taken in order for the transaction to be completed safely and without delays.

In this guide, we explain the main requirements for purchasing a property in Spain as a foreigner.

1. Foreigner Identification Number (NIE)

The Foreigner Identification Number (NIE) is the essential document required to carry out any economic transaction in Spain, including the purchase of a property. This number identifies foreign nationals for legal and tax purposes.

Without the NIE, it is not possible to:

• sign the public deed of sale and purchase
• pay taxes
• open a bank account
• register the property at the Land Registry

How is it obtained?

It may be applied for at the Spanish Consulate in your country of origin or directly at a Police Station in Spain. For stays in Spanish territory exceeding 3 months, it is necessary to submit the NIE application directly to the immigration offices of the Police Station. Before attending the Police Station, you must have requested an appointment. On the day of the appointment, it is necessary to submit the NIE Application Form (EX15), printed and completed, together with the original valid passport, as well as a photocopy of that document. This procedure may take several weeks, so we recommend starting it well in advance.

2. Valid passport or identity document

Throughout the entire purchase process, it will be necessary to present a valid passport or official identity document proving the buyer’s identity.

This document will be required at different stages of the process, from the NIE application to the execution of the public deed before a notary. In addition, copies of the passport are usually requested for inclusion in various administrative and legal procedures, so it is advisable to have several copies available.

3. Opening a bank account in Spain

Although it is not strictly mandatory, opening a bank account in Spain considerably facilitates the process of purchasing a property.

Through this account, the following are usually managed:

• the payment of taxes associated with the sale and purchase
• notarial and Land Registry fees
• community fees
• property utility supplies (water, electricity, etc.)

In addition, having a bank account in Spain makes it possible to comply with local financial regulations and maintain clear control over the transactions related to the acquisition of the property.

4. Evidence of the source of funds

Spain has strict regulations to prevent money laundering, governed by Law 10/2010 on the Prevention of Money Laundering and the Financing of Terrorism.

For this reason, both banks and the professionals involved in the transaction may request documentation proving the legitimate source of the funds used for the purchase.

The documents that may be required include:

• income statements
• recent bank statements
• bank certificates proving account ownership
• tax returns

If the funds come from the sale of another property, the corresponding deed of sale and purchase is usually requested. In the case of inheritance, it will be necessary to provide the deed of hereditary adjudication.

In certain cases, a sworn translation of the documentation may be required.

5. Deposit contract or reservation agreement

Before formalising the sale and purchase before a notary, it is common to sign a deposit contract between the buyer and the seller.This document establishes the commitment between both parties and sets out the terms and conditions of the transaction, reserving the property until the execution of the public deed.

It generally includes:

• the agreed purchase price of the property
• the deadline for formalising the sale and purchase
• an initial deposit, which is usually around 10% of the purchase price of the property

The deposit contract is a legally binding document, so it is advisable for it to be reviewed or drafted by a professional in order to ensure that it adequately protects the interests of both parties.

Buying property in Spain safely

Acquiring a property in Spain as a foreigner is a relatively straightforward process when the appropriate advice is available.

Having a specialised team allows the following matters to be handled with greater security:

• obtaining the NIE
• the legal review of the property
• drafting the deposit contract
• coordination with the notary and Land Registry
• the final execution of the sale and purchase

If you are thinking of buying a property in Spain, we will be delighted to assist you throughout the entire process and help you complete the transaction safely and transparently.

Contact our team to receive personalised advice and find the property that best suits your needs.