Guide to Buying Property in Spain
1. Power of Attorney (POA)
The process typically begins with the granting of a Power of Attorney (POA). This document usually includes myself, my colleague Estefania, and our assistant Saara—each with a specific role in the process. If one of us is unavailable, another may act on your behalf. With your consent, the POA allows us to:
- Sign relevant documents
- Obtain your NIE (Foreigner Identification Number)
- Communicate with the buyer’s or seller’s lawyer
- Sign the title deed before the notary
- Set up direct debits for utilities (e.g., electricity, water)
All these services are included in our fee.
2. Reservation Contract
The purchase process typically starts with a reservation contract. At this stage, the buyer places a deposit of €6,000–€10,000 (sometimes up to €15,000 depending on the property value) into our secure client account. This secures the property and allows us time to review initial documentation.
For new-build properties:
The reservation remains valid until the developer provides the building license certificate. Once issued, we usually proceed to the next stage—the Private Purchase Contract (PPC)—within approximately 15 days.
3. Deposit Agreement (“Arras”) or Private Purchase Contract (PPC)
For resale properties:
The next step is typically signing the arras contract within a few weeks. At this stage, the buyer pays 10% of the purchase price.
- If the buyer withdraws, the deposit is forfeited.
- If the seller withdraws, they must return the 10% deposit plus an additional 10% in compensation (as established by Spanish law).
For new-builds:
Once the building license is issued, the buyer’s lawyer receives the PPC, which includes all necessary legal details: construction guarantees, timelines, notary details, and bank guarantee conditions.
4. Legal Due Diligence
After signing the arras or PPC, we carry out thorough legal checks and coordinate with Spanish administrative bodies to collect the required certificates. This process typically takes 1–2 months.
For new-builds:
Documentation is received in stages. Once a specified payment percentage is reached, we receive certified documentation of construction progress. Bank guarantees are usually available around 45 days later, which we collect and store securely on your behalf.
5. Signing the Title Deed
When all documentation is in order, we attend the notary to sign the title deed. The remaining payment—usually 80–90% of the purchase price—is made by bank cheque from your Spanish account.
You’ll receive the property keys immediately after signing.
For new-builds:
We return the bank guarantees to the developer once the keys have been received.
6. Utilities & Direct Debits
Most contracts require the seller to keep utilities active for at least seven days post-signing. This allows us time to transfer the contracts into the buyer’s name. Utility bills are then paid via direct debit from the Spanish bank account we help you open.
For new-builds:
Utilities may not be connected at handover. Activation typically takes around 10 days—we appreciate your patience during this time.
7. Post-Signing & Final Invoice
Shortly after signing, you will receive a final invoice covering:
- Notary fees
- Land registry fees
- Transfer tax (currently 1.2% for new builds, 7% for resales)
- Any applicable seller-side withholdings
The invoice is usually issued within a few days after the notary appointment and is payable within 15 days.
8. Ongoing Property Obligations
As a non-resident property owner in Spain, you are responsible for:
- Non-resident income tax: Filed annually. For example, if you purchase in 2025, you must file your return in 2026. We will send reminders in October or November.
- IBI (Property Tax): Paid annually to the local town hall and debited from your Spanish account.
Please don’t hesitate to reach out if you have any questions—we’re here to support you at every step.
Katriina Raiskio-Flygare – Lakimies / Abogada / Lawyer Colegiada
ICA MÁLAGA Nº 9600
info@rrlaw.es – katriina@rrlaw.es
