Buying property in Spain as a foreign national is entirely straightforward, Spain has no restrictions on foreign ownership and roughly 21% of all residential transactions on the Costa del Sol in 2025 were made by non-Spanish buyers, according to data from the Colegio de Registradores. But the process is materially different from the UK, US or northern European norms, and understanding it before you start will save you time, money and, most importantly, the wrong property.
This guide walks through the seven concrete steps from first viewing to receiving the keys, plus the full breakdown of taxes, fees and timelines you should budget for in 2026.
Step 1, Get your NIE number
The NIE (Número de Identificación de Extranjero) is a tax identification number that every foreign buyer in Spain must have. You cannot complete a property purchase, open a Spanish bank account or pay tax without one. There are two routes to obtain it:
Apply at a Spanish consulate in your home country
This is generally the slower route, appointment availability varies dramatically by country, and processing times in 2025 ranged from 4 weeks (Dublin, Stockholm) to over 3 months (London, Berlin). The application costs €9.84 and requires a completed EX-15 form, a justified reason for the application, your passport and a passport photograph.
Apply in Spain
Most buyers apply during an early viewing trip to Marbella. A power of attorney can also be granted to your Spanish lawyer, who can obtain the NIE on your behalf, typically within 2–4 weeks. This is the route the majority of our clients use, and it costs €40–€100 in legal fees on top of the official €9.84 charge.
Step 2, Open a Spanish bank account
A Spanish non-resident bank account is not strictly mandatory, but it makes everything from paying the deposit to settling future utility bills meaningfully easier. The major banks, Santander, BBVA, CaixaBank, Sabadell, all offer English-language non-resident accounts with branches throughout Marbella. You will need your passport, NIE and proof of address from your home country.
Non-resident accounts typically carry a quarterly maintenance fee of €25–€60, but this is offset by the absence of FX margins on the deposit and completion transfers. Most buyers open the account during the same trip they view properties.
Step 3, Appoint an independent lawyer
This is the single most important decision in the process. Your lawyer (abogado) will conduct due diligence on the property, review and negotiate the contract, manage the tax payments and represent you at completion. Always use an independent lawyer, never one recommended by the seller or selling agent. The conflict of interest is direct and avoidable.
Legal fees in Spain are typically 1% of the purchase price plus VAT, with a minimum of around €1,500–€2,500 for transactions under €250,000. For purchases above €2M, fees often negotiate down to 0.5–0.75%.
Step 4, Mortgage options for foreign buyers
Spanish banks lend readily to non-resident foreign buyers, though on more conservative terms than to residents. As of early 2026, the standard market is:
- LTV: 60–70% of the lower of purchase price or bank valuation, vs 80% for residents.
- Term: Up to 25 years, with the loan typically required to be repaid by the borrower's 75th birthday.
- Rates (Feb 2026): Fixed-rate non-resident mortgages are pricing at approximately 3.5–4.2%; variable-rate mortgages tracked to 12-month Euribor plus 1.0–1.5%.
- Affordability: Spanish banks generally cap total monthly debt service at 35% of net income.
Get a mortgage in principle before making offers. It strengthens your position with the seller and avoids the risk of losing your reservation deposit if financing falls through.
Step 5, Make an offer and sign the reservation contract
Once you've found the right property, whether a villa in Nueva Andalucía, an apartment on the Golden Mile or a townhouse in Estepona, you make an offer through the agent. If accepted, you typically sign a reservation contract (contrato de reserva) and pay a small deposit of €6,000–€20,000 to take the property off the market for 14–30 days while your lawyer completes due diligence.
Step 6, Sign the private purchase contract (Arras)
Once due diligence is complete, you sign the contrato de arras (deposit contract) and pay 10% of the purchase price. From this point both parties are legally committed: if the buyer pulls out, the deposit is forfeited; if the seller pulls out, they must refund double the deposit. Completion typically follows 4–8 weeks later.
Step 7, Completion at the notary
The final step is signing the escritura pública de compraventa (public deed of sale) before a Spanish notary. The remaining balance is paid by banker's draft, the keys are handed over, and the notary lodges the transaction with the local Land Registry (Registro de la Propiedad). You are now the legal owner. Final registration at the Land Registry takes a further 2–6 weeks.
The full cost breakdown, what you actually pay on top of the price
Budget 10–13% of the purchase price in addition to the agreed price. The breakdown depends on whether the property is a resale or a new build:
Resale property (most second-hand purchases in Marbella)
- Transfer Tax (ITP): Andalucía applies a flat 7% (reduced from the previous sliding scale in 2022).
- Notary fees: 0.1–0.5%, sliding scale based on price.
- Land Registry: 0.1–0.25%.
- Legal fees: ~1% + 21% VAT.
- Mortgage costs (if applicable): ~1.5–2% (valuation, arrangement fee, AJD does not apply on the mortgage in Andalucía since 2018).
New-build property (off-plan or first transmission)
- VAT (IVA): 10% on the purchase price.
- Stamp Duty (AJD): 1.2% in Andalucía.
- Notary, Land Registry and legal fees: as above.
For a typical €1M resale villa in Marbella, expect approximately €95,000–€110,000 in additional costs. For a €1M new-build at Los Flamingos or on Estepona's New Golden Mile, expect €125,000–€140,000.
Typical timeline, from first viewing to keys
A standard purchase from offer to completion takes 8–12 weeks. The phases break down as follows:
- Week 0: Offer accepted, reservation deposit paid.
- Weeks 1–3: Lawyer due diligence, title search, debt and charges check, planning and licence verification, community fees confirmation.
- Week 3: Sign the contrato de arras, pay 10% deposit.
- Weeks 4–10: Mortgage finalisation, transfer of completion funds to Spain, notary appointment scheduling.
- Week 10–12: Completion at notary, keys handed over.
Off-plan purchases run on the developer's construction timeline, typically 18–30 months from contract to handover, with staged payments of 30–40% during construction and the balance at completion.
Common mistakes to avoid
The three most expensive errors we see foreign buyers make: appointing the seller's recommended lawyer (conflict of interest); paying the 10% deposit before due diligence is complete; and underestimating the additional 10–13% in costs and budgeting only the headline price. Each of these is entirely avoidable with the right team in place from day one.
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