Frequently Asked
Questions and Tips

Did you know that more than a third of real estate transactions are carried out solely by individuals? If you have also decided to tackle the sale of your home yourself, then you know that this is no easy task. Without any experience in the industry, it is very normal to make many mistakes. Mistakes that, without you realizing it, can sometimes cost you a lot of money.

So how can you successfully execute your real estate project while maximizing your time and money savings? In this article, we give you the 10 common mistakes that cost sellers money, so you have all the keys in hand to avoid them in the future!

Showing a too high price for the value of your property

Showing a too high price for the value of your real estate is often one of the most common mistakes sellers make. Although it is natural to want to make a profit, you must not forget that the main goal is still to sell your property. How many sellers have already missed out on offers because they did not evaluate the market trend well enough? Too many. The result is that the property is not sold, and you lose time and money.

So stay realistic about the value of your property, and you will find that you can be surprised by the number of offers you can receive.

Not being available enough. Offering a quality property and an attractive price is not always enough to complete a real estate transaction. An unsuitable seller not only limits the number of viewings but also rightly prevents the establishment of a climate of trust with future buyers. In this way, potential customers will be much less inclined to be open to negotiation in turn. And you may understand that fewer negotiations inevitably lead to fewer offers in your favor.

Doing too many renovations. Although this initially well-intentioned action is motivated by good intentions, too many sellers decide to fully engage in large-scale renovation work to have all the odds in their favor. Ultimately, these additional costs lead to extra expenses that you could have done without. So instead of investing in an interior designer or artist, you are better off choosing home staging! Home staging is very popular in the United Kingdom and involves upgrading your property in a cost-effective way. Bring out your interior, declutter the spaces, and organize the rooms, and you will find that your house is ready for sale without spending a dime.

Having a too personal decoration. The decoration of a house often says a lot about the seller, and it can sometimes be difficult to let go of it. Yet, a busy decoration or an overly pronounced wall color during viewings can quickly deter potential buyers from imagining themselves living there. Remember that a buyer usually makes their decision within the first 90 seconds of a viewing. It would be a shame if a simple decoration cost you time and money! So if initially it seems difficult to part with your decoration, remember that this is only during the sales period, and otherwise, you may miss out on great opportunities.

Refusing to hire a professional. Hiring a real estate expert inevitably involves extra costs, usually around 5% of the sale price of your property, unfortunately, a percentage that cannot be ignored! So as a seller, you naturally think that you can do it yourself and that the internet will be your friend if there are any problems. Unfortunately, the real estate sector is much more complex than one might imagine, as it requires both in-depth knowledge of the market and some legal and geographical concepts. So although it may initially take effort to hire a professional, you will soon find that this decision has resulted in valuable savings for you.

Not being open to negotiations. Whether you want to sell or buy real estate, you know that negotiations are a common practice in the industry. However, to this day, there are still too many sellers who hesitate for the wrong reasons to apply this practice, fearing that they will have to significantly lower their original selling price and thus lose money. Yet this idea is often unfounded because real estate that is not negotiable will mainly deter potential buyers. Rest assured, being open to negotiations in a real estate sale does not necessarily mean that your original price will be significantly lowered. Sometimes just a slight price drop of your property can lead to a successful sale. So instead of remaining closed to all forms of negotiation, show yourself open to these proposals. You will always be better off, and you will be surprised by the time and money you save!

Neglecting the outdoor area. Who would really want to invest in real estate with a neglected garden and a terrace you cannot enjoy? You probably already have the answer. Yet outdoor areas are often neglected in real estate sales. So before you sell, pay close attention to the care of your outdoor space, such as your terrace, as this criterion can provide unnoticed added value to your property and therefore offer you better real estate deals.

Lack of visibility. Whether you have the most beautiful house in the region or a price that defies all competition, if your real estate sale is not visible enough, you risk being stuck with your property and the associated costs for many years. So, do not neglect your visibility, especially, we count on you to present your best photos!

Not being up-to-date in terms of administration. Indeed, some buyers may be willing to cooperate, but others will not be willing to wait, and you risk missing out on valuable opportunities. So make sure you prepare all the necessary documents before offering your property for sale.

Being too impatient. Do not confuse speed with haste! It is normal to want to complete your sale as quickly as possible, but do not panic if things take longer than they should. In haste, we often tend to skip steps and thus incur unexpected extra costs. By being patient, you can avoid many financial problems.

If you have any other questions about selling your property in Spain, do not hesitate to consult our services and visit our blog.

Step 1 – Obtaining your NIE

If you plan to buy property in Spain to live, rent or spend your holidays there, you will need a NIE (Foreigners Identification Number) if you are a European, or a TIE, Tarjeta de Identidad the Extranjero (ed.: identity card for foreigners) if you are not a citizen of the European Union.

Why is this document mandatory?

These documents are essential to identify you to the Spanish government.

You will need them for any real estate transaction, opening a bank account, arranging electricity, water, gas, internet, starting a business, buying a car, or even receiving a package.

New: since 2021 it is possible to purchase without NIE, under one condition…

COVID-19 has changed the rules of administration and since the end of 2021, an agreement between the General Council of Notaries and the tax collection agency now allows notaries to apply for a tax identification number (the NIF, Número de Identificación Fiscal) without the mandatory presence of the applicant. This tax identification number allows you to temporarily waive the NIE. This will allow you to continue your purchasing project without being bothered by this formality. This process greatly simplifies things when purchasing property from abroad.

Budget for real estate project in Spain

Step 2 – Determining the budget and financing

One of the first things we quickly try to clarify with potential buyers who contact us is the issue of financing.

The first thing you need to know about financing in Spain is that Spanish banks only lend 60% of the property value without notary fees to non-tax residents.

To be tax resident in the eyes of Spanish law, you must be in one or more of the following situations:

• Living in Spain more than 183 days per calendar year
• Have interests in Spain
• Your official partner and children live in Spain

In general, you can count on a personal contribution of 30% of the purchase price for a mortgage in Spain. We recommend that you make your calculations before you start, as there is no cancellation clause for not obtaining the loan.

You can also choose to be financed in the Netherlands, but note that the bank will probably ask you to provide a guarantee (pledging a life insurance policy or real estate) in exchange for this loan. If you do not have this or do not want your life insurance or real estate to be used as a guarantee, please contact us, we have partners in the Netherlands who can offer you a tailor-made solution.

Step 3 – Taxes and fees upon purchase

Any property you buy in Spain is subject to a range of taxes and fees. These vary depending on each property. Generally, these costs represent approximately 15% of the purchase price. Below you will find the costs associated with the purchase of real estate in Spain to better define your project in Spain.

ITP, Impuesto de Transmisiones Patrimoniales (Transfer Tax)

The most important tax you have to pay if you buy an existing house in Spain is the transfer tax (ITP). The percentage of this tax varies depending on the autonomous community you are purchasing in and may be subject to change. For example, at the time of updating this article in March 2023, the current rate for ITP in Valencia is 10% of the purchase price.

Notary costs

The notary costs are determined on the basis of an official scale. Rates vary depending on the area of the land, the size of the property and its sales price. In Spain the notary has a very limited role. He only confirms the legal conformity of the deeds. The costs are therefore also lower compared to France.

Legally, the notary costs can be shared, but it is often the buyer who pays them. There are additional costs that must be paid to the land registry.

Brokerage fees

If the seller makes a profit on the sale, he must pay the capital gains tax (ganancia patrimonial) and the municipal capital gains tax. Normally the buyer will pay the transfer tax and notary costs mentioned above. Spanish consumer law recommends dividing costs between buyers and sellers, but in some cases the seller insists that the buyer bears all costs. This is again an issue that your lawyer should discuss with you and the sellers.

IBI, Impuesto sobre Bienes Inmuebles (real estate tax)

The IBI is the equivalent of property tax in Spain. It is paid by the owners to the local municipality. Anyone who owns property in Spain must pay this tax every year.

This receipt is very important when purchasing real estate for two reasons:

1. It lists the property’s cadastral number, which can give you information about the property you are purchasing.
2. It also shows the cadastral value of the property. You often need this reference value to declare your taxes.

When purchasing real estate, your lawyer must ensure that all IBI taxes have been paid in the past 5 years. This ensures that the previous owner and therefore the property you are purchasing is free of debt.

For more information about IBI, see our article: Who pays the IBI?

Step 4 – Property Selection

Your project is evolving and you are now looking for your future property in Spain. You have probably been redirected to articles like this one, or advertisements on real estate portals such as Idealista, Habitaclia, Pisos.com, Kyero.com, Green-acres.com, etc.

But between the sometimes questionable quality of the photos, the language barrier, doubts about the legal status of the property, the location, etc., you may get a little lost!

You can travel back and forth between your country and Spain, but you run the risk of unnecessary travel.

For all these reasons, we (of course) recommend that you engage a Dutch-speaking certified real estate agent . This option saves you time and prevents unpleasant surprises .

Our Dutch-speaking advisors will guide you from A to Z during your purchasing process. They save you time and money by previewing the houses that interest you in video.

During their visits, your agent will check the general condition of the property and the building (heating, insulation, possible works) and inform you of important information such as the costs of the apartment building and property taxes. Our experts know the local market and can accurately assess the price, moderating the sometimes exaggerated demands of some sellers.

Step 5 – Legal Checks

In Spain, the notary has a very different role than in Dutch-speaking countries. He only confirms the legal conformity of the deed of sale.

Therefore, the intervention of a lawyer is necessary and indispensable when purchasing property in Spain. He will carry out all the necessary checks: identity of the owners, absence of debts, encumbrances, conformity with the land registry, absence of construction violations.

To provide the most complete service to our customers, we always recommend the intervention of a lawyer.

This lawyer will provide you with legal advice to help you decide whether or not to proceed with this real estate purchase.

Remember that the land registry can determine the exact boundaries and location of the property. The land registry provides a brief description of the property. Read our article about the land registry for more information. What is the role of the land registry?

Although the differences are generally minor, it is important to ensure that the property you are purchasing is described in the same way in the deed, property register and land registry.

Step 6 – Reservation of the property: la señal

In Spain, to assert your purchase intention, in most autonomous communities you must pay an amount that can vary between €1,000 and 1% of the price offered to the real estate agency or the property owner.

This is known as a “Reserva” or “Señal” and involves the signing of a preliminary contract containing the key information and features of the property. For more information about the reservation contract, you can consult our article on the difference between a reservation contract and a compromise contract.

The owner then has 2 to 5 days to accept or refuse the offer. In theory, viewings should stop. Unfortunately, in practice many owners or brokers continue to try to get a better offer.

If your offer is not accepted, the agency must refund the full reservation amount to you.

If the offer is accepted, the prepaid amount will be deducted from the sales price. This is usually topped up to 10% of the property value at the time of signing the compromise, i.e. during the seventh step of the purchasing process.

Step 7 – Signing the purchase agreement: las arras

The purchase agreement is a private contract concluded between the buyer and the seller. In Spanish it is called “Arras”, it is not signed before the notary but will be requested on the day of the sale. The notary will therefore check the conditions agreed between the parties.

The contract of the “Arras” contains a lot of essential information:

• The identity of the seller and the buyers
• The address of the property
• The sales price of the property
• The deadline for signing at the notary
• The address of the notary where the sale will be signed (optional)
• Any current debts
• Payment methods
• The distribution of the notary costs
• Penalties in case of withdrawal by one of the parties

In most cases, the financial advance paid by the prospective buyer at the time of the “señal” (reservation) is supplemented up to 10% of the sales price.

As for the purchase agreements, in most cases they are signed between private individuals and are called “arras penitenciales”. They are regulated by Article 1454 of the Spanish Civil Code.

If the buyer withdraws, he will lose the amount paid. However, if the seller withdraws, he is obliged to refund double the amount paid to the buyer.

Step 8 – Signing at the notary and handing over the keys: la escritura

The big day has arrived! You will complete the transaction by signing the “Escritura”, the authentic document. At this time you must pay the remaining balance.

Some notaries accept that the amount of the property is deposited into their account and they then issue bank checks to the sellers. However, others refuse to receive a foreign transfer due to money laundering prevention. In that case, you will need to bring bank checks issued by your Spanish bank. To do this, you must have opened a bank account in Spain in advance.

Good to know!

Ask your Spanish bank advisor in advance about the rates for issuing a bank cheque. You might be surprised! Some banks offer attractive promotions where they do not charge certain costs, such as the opening commission. However, they often more than compensate for this by charging high rates for issuing the check, sometimes up to several hundred euros.

And what if the seller of your future Spanish country house is none other than five heirs to a family estate? In that case, you would have to issue five bank checks, and no one else would pay these fees for you.

The keys are always handed over on the day of the signing of the authentic deed. The notary confirms the payment and the new notarial deed is then registered in the Registro de la Propiedad (Register of Properties) through his office or through a collaborating office.

The taxes related to the purchase, in particular the “Impuesto de Transmisiones Patrimoniales” (Transfer Tax), must be paid within 30 days of the signing date.

Now that you know every step of the process of buying property in Spain, you can get started! We guide you in different cities and regions such as Alicante, Valencia, Benalmadena, Denia, Marbella, Jávea, Murcia, Torrevieja, and so on…

Please contact us if you have any questions.

In Spanish, real estate capital gains are referred to as “ganancia patrimonial.” It is a tax paid by the seller or the buyer (in the case of a non-resident seller) who makes a profit from the sale of real estate. This gain can result from various transactions, such as property sales, donations, or property transfers.

Note: This should be distinguished from “plusvalía municipal,” a local tax that taxes the increase in the value of urban land in real estate transactions.

Calculation of Capital Gains

To calculate the amount of capital gains, the following formula should be used:

Profit or loss on capital = selling price – purchase price

Purchase price:

This is the sum of the property price (stated in the authentic deed) and all costs and taxes related to the purchase (appraisal costs, notary fees, lawyer fees, broker fees, performed works, depreciation in case of property rental, property taxes, etc.).

Selling price:

This is the sum of the selling price and all costs related to the sale.

Taxation on Real Estate Capital Gains in Spain

If you are considering selling real estate in Spain, here are the tax rules you need to be aware of.

What you need to know about this tax?

The tax rate for capital gains is progressive and varies depending on various factors:

• Dependent on tax residency.
• Dependent on the amount of capital gains.

As a reminder, someone is considered tax resident in Spain if that person:

• Resides in Spain for 183 cumulative days per year.
• Has personal or professional interests in Spain.

Tax on real estate capital gains for tax residents in Spain

The capital gains must be declared in the Individual Income Tax (IRPF) return. For more information on this tax, read our practical guide on IRPF.

Here is the rate schedule for 2023:

• For the first €6,000 of profit: 19%
• €6,000 – €50,000: 21%
• €50,000 – €200,000: 23%
• €200,000 – €300,000: 27%
• More than €300,000: 28%

Tax on real estate capital gains for non-residents

The rate is 19% for European Union residents who must declare it under the Non-Resident Tax.

We want to draw your attention to the payment method: to prevent capital flight, Spain has a withholding system at the time of signing before the notary if the seller is a non-resident. 3% of the tax is withheld from the buyer. This amount must be transferred to the Agencia Tributaria within a month. The seller must pay the remaining 16% within three months.

Exceptional cases

For the main residence:

When selling the main residence, gains are exempt from tax if reinvested in another main residence within two years.

It is fully exempt for:

Property owned by individuals over 65 years old.

Individuals in a situation of severe dependence or severe disability.

Our advice: to know the amount of your real estate capital gains, contact the tax authorities or your tax advisor. J’achète en Espagne can recommend reliable experts. Contact us.

Although opening a bank account is not essential to live in Spain, it will significantly facilitate your integration into Spanish life.

Whether you plan to stay long-term, purchase real estate, or establish your own business, having a bank account in Spain is an essential step. However, as with any administrative procedure, you need to understand Spanish or be guided by a local person, such as one of our experts at Prime Estate (in the case of a real estate purchase). To assist you, here are the various options available to you.

• Opening a bank account in Spain for tax residents in Spain
• How to open a bank account in Spain for non-residents
• Opening a bank account in Spain for a business
• Different types of bank cards in Spain
• How to choose a bank
• Different types of banks in Spain

Opening a bank account in Spain for tax residents in Spain

To open a bank account in Spain as a tax resident, you must prove that you are subject to IRPF, the Spanish income tax, by providing proof of address. Therefore, when opening the account, you must provide the following documents:

• A valid passport or ID card
• Your foreign identification number (NIE)
• Proof of address (electricity bill, water bill)

At the time of opening, you may also be asked for a copy of your most recent bank statements. Some advisors ensure that their future clients manage their finances well and take precautions for a loan application.

How to open a bank account in Spain for non-residents?

Someone is considered a non-resident if they stay in Spain for less than 183 days per year and do not pay any Spanish taxes. In this case, the required documents for opening a bank account are:

• A valid passport or ID card
• Your foreign identification number (NIE)

If you plan to work for a Spanish company, you should provide a copy of your employment contract or a promise of employment at your first appointment. Depending on your income and regular activity in your account, you can obtain better conditions and lower management fees. Some banks may ask you to provide proof of non-residence (certificado de no residencia), which can be obtained in the form of a sworn statement or a certificate issued by the police station (allow 15 days processing time).

As for the processing time, it is very fast. Your advisor will provide you with your Spanish account number at the appointment. However, you must wait 5 to 7 days to pick up your cards and PIN codes at the bank branch.

Opening a bank account in Spain for a business

If you plan to establish your own business, you must inform your advisor, as it is in your interest to entrust your personal account to him. Spain is one of the European countries where bank costs are the highest. By opening multiple accounts, you can bundle these costs and simplify the administration. You must then provide the following documents:

• A valid passport or ID card
• The notarial document
• The appointment of the administrator
• The statutes of the company (S.L.; S.L.N.E.; S.A.; etc…)

Advice: Banco Sabadell is a business bank for foreign entrepreneurs. The services are tailored to this target group, the staff speaks multiple languages, and the online platform is available in different languages.

Different types of bank cards in Spain

In Spain, there are different types of bank cards. Unlike Dutch-speaking countries, where one bank card (Visa or Mastercard) is sufficient for all your purchases, in Spain, you have one card for direct payment + withdrawal at an ATM, and a second card for credit payments.

Note: In Spain, cash withdrawals at ATMs of banks other than your own are charged (fixed fees + commission depending on the amount). Be careful to avoid unpleasant surprises and choose a bank that is sufficiently present in Spain.

How to choose a bank

As in many countries, when choosing a bank, you should consider the following criteria:

• The amount of management fees
• The contribution for the debit/credit card
• The language of your online platform
• The amount of fees for withdrawals
• The costs for international transfers
• The amount of transaction fees
• Costs for use abroad

But where should you refer to determine if an offer is interesting for you? To give you a reference, the amounts mentioned are averages.

For daily transactions and management fees, expect €5 per month. Other costs vary from one institution to another and allow you to find the offer that best suits your needs.

In Spain, the use of checks is not common, and therefore, few banks will provide you with a checkbook unless you request it. Be aware: Check if your bank card is linked to the bank where you want to withdraw money; otherwise, a fee of €2 per withdrawal will be charged. As for international transfers, these can be expensive.

Different types of banks in Spain

In Spain, you have a choice of more than 150 different banks. But which one should you choose?

There are different types of banks at your disposal:

• Those of the national network (Santander, BBVA, La Caixa, Sabadell, Ibercaja, etc.)
• Those of regional networks
• Online banks (BForBank, N26, ING DIRECT Spain, Revolut)

If you plan to travel or move around the country, prefer a bank from the national network. Avoid replenishing your accounts by exchanging checks, as costs and processing times in Spain can be surprising. Note that free online banks have advantages (no management fees and free card) but also disadvantages (minimum deposit at opening, access to credit, life insurance, bank fees abroad, stock transactions, etc.).

Now that you have a clear idea of how to open a bank account in Spain, you probably also need accommodation. Look no further; you are in the right place. Prime Estate assists Dutch speakers every year with their real estate purchases, all-inclusive. Contact us today to assess the feasibility of your project.

Selling an apartment or house in Spain can proceed much faster than in the Netherlands if the sale is well-prepared. Here are the 7 essential steps to sell your real estate in Spain.

Preparation for the Sale of Your Property in Spain

1st Step: Gather Essential Sales Documents

To save time, collect or have a real estate agent gather all essential sales documents in advance:

• The property title.
• The “nota simple” of the property (a legal document with information about ownership, legal status, ongoing charges, and debts).
• The statutes and regulations of the building.
• The floor plan of the property.
• The ITE certificate (Technical Inspection of Buildings) confirming the building’s compliance (available from the municipality).
• If applicable, building permits and necessary permits for changes or expansions to the property (these documents are available from the municipality).
• The “cédula de habitabilidad” confirming that your property is considered “habitable” (this certificate is also available from the municipality).
• The energy performance certificate (obtainable through an expert).
• The last IBI receipt, i.e., your last property tax (for more information on property tax in Spain, we have prepared a video on IBI).
• The last electricity and water bills.

2nd Step: Assess the Value of Your Property

Have your property appraised to align with market prices. A poorly appraised apartment does not sell well. For this, you need to:

• Conduct an analysis of the real estate market: educate yourself about prices in the region where your property is located. These can vary significantly from city to city and even from neighborhood to neighborhood.Our advice: Entrust this crucial step to a real estate agent. They have the tools to know the prices in your area.
• Consult a professional appraiser. This expert is responsible for valuing real estate. Their expertise can help you determine a competitive selling price.

3rd Step: Physically Prepare the Property

If your property is outdated or has minor defects, update it: decoration, minor repairs. These expenses make a difference and allow potential buyers to better visualize. You will sell faster. Prime Estate offers a homestaging service (optimizing your interior). Contact us for more information.

If your property needs it, carry out renovation work yourself. This can increase its market value.

Thorough cleaning: declutter, clean, etc. Ensure the property is well-maintained before potential buyers come for viewings.

4th Step: Choose the Sales Method

• Sell through a real estate agent.Advantages: Agents handle the appraisal, the sale (photos, videos, selection of sales channels, etc.), they provide more visibility, select qualified buyers, guide viewings and negotiations. They guide you through the entire process up to the notary on the day of key handover. Prime Estate can handle the sale of your property, make an appointment with our specialists for more information.The seller can choose to offer their property for sale exclusively or non-exclusively.Our advice: Opt for exclusivity. This guarantees you quality service and straightforward communication. It is not true that you sell faster if your property is promoted by several agents. The opposite is true, for a simple reason: agents highlight the properties they have exclusively.Disadvantages: This service has a cost. This is agreed upon between the chosen agent and the owner.
• Direct sale by the ownerAdvantages: You save on agent fees and have full control over the sale.Disadvantages: You have to go through all the steps in the sales process yourself, including obtaining all the above-mentioned documents, the appraisal, the presentation (photos, videos, writing the ad and posting it online), promotion, negotiations, and the administrative steps needed to formalize the sale

During the process of buying real estate in Spain, legal checks are by far one of the most crucial steps for which it is strongly recommended, if not mandatory, to engage a lawyer. With laws changing and varying depending on regions or cities, let’s explore why hiring a lawyer when purchasing real estate in Spain is of paramount importance.

What does the profession of a lawyer in Spain entail?

In Spain, a lawyer, similar to a notary (see our article on the role of a notary in Spain), is a legal professional who assists clients during a transaction or dispute.

Therefore, the lawyer serves a supportive role for their clients, which may be necessary in both legal proceedings and outside of a judicial procedure.

The scope of work for a Spanish lawyer extends across various sectors:

• Family law
• Business law
• Administrative law
• Criminal law
• Inheritance law
• Real estate
• Tax law

What is the role of a lawyer in the purchase of real estate in Spain?

The lawyer will conduct a series of checks that the notary may not be involved in. In Spain, notaries have a more limited role than in France or Belgium. However, this doesn’t mean it’s not essential. The lawyer will:

• Verify the guarantee of absence of debts (outstanding costs, mortgage, etc.);
• Obtain and verify the certificate of registration with the municipality;
• Check any urban planning projects;
• Verify the property’s compliance with the land registry;
• Check the concept of the authentic deed.

Fees of a lawyer in the purchase of real estate in Spain

When purchasing real estate in Spain, most lawyers establish their fees based on a percentage of the property’s value (between 1% and 2%). Others offer a fixed amount, starting at 2,000 euros. However, certain criteria can alter these fees (for example: the lawyer’s reputation, complexity of the case, location, etc.).

Note: In Spain, many so-called “Asesor” professionals call themselves “Lawyer” without having the required diploma.

These are professionals (often accountants) who play with ambiguity and take advantage of their clients’ trust. Always ensure that the person you are in contact with is registered with the bar association of the capital of the province in which they are active.

Do you need legal advice? Contact us!

In Spain, the role of the notary is relatively limited in real estate transactions. In this practical guide, we explain their functions and their supplementary role with a lawyer when purchasing real estate. Our real estate experts have contributed to this exercise to inform you as thoroughly as possible and help you understand why our all-in-one offers, including administrative and legal guidance, may be of interest.

What to expect from a notary in Spain?

Unlike the Netherlands or Belgium, the notary in Spain is not an independent practitioner; they represent the state. In fact, the notary is a legal professional performing a public function. Therefore, the Spanish notary is obliged to provide free and impartial legal advice to any Spanish citizen who requests it.

Nevertheless, the Spanish notary also offers paid services, such as:

1. Personal and family relations (marital property regimes, inheritances, and wills)
2. Housing and real estate (sale/purchase of real estate, new construction)
3. Mortgages and loans
4. Companies and corporations (company formation)
5. Powers of attorney
6. Notarial deeds
7. Mediation
8. Procedures (application for an NIE, etc.)

What is the role of the notary in real estate purchases?

Unlike the Dutch notary, the Spanish notary remains impartial in a real estate purchase; they do not take sides for the buyer or seller and are there to ensure compliance with local laws. Their role and obligations are limited.

Therefore, it is highly recommended that the buyer engages a lawyer (these costs are included in our rates) or, even better, avails the services of a real estate agent, such as the ones we offer. The lawyer conducts all legal checks and provides legal advice (free of debts, free of charges, free of all encumbrances, free of hidden defects, presence of an energy diagnosis, verification of the registration certificate with the municipality: no liens or mortgages, no official protection of real estate whose selling price has been accepted).

In summary, in Spain, the notary handles the identification of the parties and witnesses signing the deed, registers the new owner in the Property Register (Registro de Propiedad), and collects all costs and taxes involved in the sale. Read here about the costs of the notary in Spain.

To assist you, here is the list of notaries sworn in by the Spanish state in function:

Link to the list of notaries

The notary and the establishment of a company in Spain

Setting up a company in Spain can be a lengthy process. The procedures differ from those in France, and after applying for your NIE and registering your company name with the Chamber of Commerce, the next mandatory step is an appointment with a Spanish notary.

In this regard, the notary’s role is to validate or reject the company’s articles of association, which you have prepared in advance with the assistance of a legal advisory firm. The articles of association include:

1. The purpose of the company (type of activity)
2. Legal status (SA, SL, Autonomo, etc.)
3. Appointment of shareholders (distribution of the company’s shares)
4. Appointment of directors (Director(s))
5. Distribution of participations (redistribution of profits)
6. Fiscal and social domicile (administrative address, registered office)
7. Amount and nature of the capital*

In most foreign countries, when referring to acquisition costs, people often mention notary fees.

However, in Spain, the notary plays a different role. For instance, they are not legally obligated to perform administrative checks related to real estate transactions.

Spanish acquisition costs may involve various elements. Several parties, such as lawyers, real estate agents, and specialized advisors, are involved in a real estate transaction in Spain, in addition to the notary. What costs does the buyer need to pay to each party? What taxes must be paid? How can you get an estimate? Answers.

Real Estate Acquisition Costs in Spain

Buying a house or apartment in Spain comes with various types of costs, taxes, and fees. To get a general idea of the amount of acquisition costs, estimated acquisition costs are around 11% of the property purchase price, excluding advisory and guidance fees. In more detail, we can divide the acquisition costs into three main categories:

1. Notary Fees

These include notary fees, property valuation costs, and registration fees. These costs are estimated at 1% of the purchase price, with a minimum of 1,500 euros.

1. Taxes
2. Advisory Fees and Other Costs

What are the costs when buying an existing property?

A significant portion of the costs and taxes goes to various government agencies. This amount varies on average, depending on each autonomous community, between 8% and 12% of the property price.

Which taxes are we talking about?

The main one is the transfer tax (Impuesto de Transmisiones Patrimoniales or ITP). This tax is paid for second-hand homes. It can even apply to a brand-new house, but if there has already been an initial transfer to a financial institution, the purchase is considered a second transfer, and no VAT is levied.

The management of the ITP is left to the autonomous communities, and the rate varies between 6% and 10%. You can check the rates on the website of each autonomous community. The rate is applied to the value of the transferred property.

In the case of documented legal acts (AJD), this only applies to used houses, at the time of taking out the mortgage, on its amount.

Now we also need to add the selling costs, such as:

• The public deed at the notary. Notary fees are regulated, and the costs depend on the value of the property, but they can be increased by factors such as the number of copies, the size of the deed, etc. A discount applies to social housing and subrogations.
• Registration in the land registry. These are the costs generated by registering the sale in the land registry. They are regulated, and the amount depends on the property’s price.
• Management. These costs include all administrative formalities and payments. This is especially important when the transaction involves a mortgage loan. Prices vary depending on the administrative tasks they need to perform, both for the sale and for the mortgage.

Costs for Mortgage Loan

It is common for many buyers to take out a mortgage loan. This incurs additional costs and taxes, depending on the financial institution with which you work.

1. Opening a bank institution: These costs are charged at the time of granting the loan for the analysis of the viability of the transaction faced by the financial institution.
2. House appraisal: This depends on the size of the property.
3. Land registry: In addition to registering the sale, the mortgage deed must be added.
4. Notary: The notary is the one who grants public deeds of sale and mortgage.
5. Office fees: Administrative procedures (registration, payment of taxes, etc.).
6. Damage insurance: The one applying for the loan must compulsorily take out damage insurance covering the appraised value of the property.

The closing of a mortgage loan is subject to the tax on documented legal acts (AJD), a tax that depends on the autonomous community and varies between 0.5% and 1.5% of the amount of the mortgage guarantee, as discussed earlier.

After checking all these concepts, it is recommended to have at least 30% in savings, as the mortgage usually represents a maximum of 80% of the estimated value of the apartment.

What are the costs when buying a new property?

Unlike an existing property, which we discussed earlier, the main tax when buying a new property is VAT. This tax belongs to the state and is 10% of the home’s price, and 4% if it is under official protection in a special regime. This VAT also applies to parking spaces purchased with the house, up to a maximum of two.

If new parking spaces are bought separately, a VAT rate of 21% applies.

In the case of documented legal acts (AJD), these are paid twice for new real estate transactions: at the time of purchase and at the time of the mortgage. Since it is transferred per autonomous community, they can set the percentage. This tax is levied on the legal documents required for the property transfer and corresponds to a percentage of the property’s value.

At present, it varies between 0.5% and 1.5% of the property price, depending on the property’s location. It also applies to the creation of the mortgage, specifically on its amount, also depending on the figure.

But this tax has many exceptions in each autonomous community. An example to prove this. In Andalusia, the general AJD rate on the loan is 1.5%, but if the buyers are under 35 years old and the loan amount is not more than 130,000 euros, 0.3% is applied when taking out the mortgage loan.

This means that a new house pays VAT (10% or 4%) and AJD (0.5% – 1.5%).

These are the taxes for a new or first transfer property, as for the costs, both for sale and mortgage, they do not differ from an existing property.

1. Public deed at the notary
2. Registration in the land registry
3. Management
4. House appraisal
5. Commission for opening the mortgage loan
6. Insurance

It is important to note that if the buyer purchases a new home from a developer and arranges the mortgage themselves (not mandatory), they do not have to pay costs for the property appraisal or the opening commission.

In total, with all costs and taxes included, the purchase of a new home without a mortgage loan adds about 13% to the property price.

Buying a new or existing property: What are the differences?

As explained earlier, notary and registration fees are the same regardless of the type of property being purchased. While these costs are comparable between buying an existing property and constructing a new one, the taxes future owners must pay differ.

Taxes when buying an existing property in Spain

This option has several advantages: immediately available, access to privileged neighborhoods, charm of the property, etc. However, property transfer tax will be paid, also known as “Impuesto de Transmisiones Patrimoniales” or simply “ITP.” This tax varies from 3% to 11% depending on the regions in Spain. For example, it represents 10% of the property purchase price in the Valencia region and 8% of the property amount in Andalusia, etc. Additionally, notary fees must be added.

Taxes when building a new property or buying a new property

When purchasing a newly delivered property or buying a new construction

New build properties in Spain — especially along the Costa Blanca — have become increasingly popular in recent years. For many buyers, new developments offer attractive benefits such as modern construction techniques, energy efficiency, and lower maintenance costs.

But how does it work, and what should you watch out for? At Huis Costa Blanca Kopen, we can guide you through the process with ease. With over 25 years of experience and multiple local agents in Spain, you’ll never face unexpected surprises with us.

What Rules and Permits Are Important?

When buying into a new build project in Spain, it’s essential to verify the following:

• Permits: Ensure the development has all necessary permits issued by the local municipality.
• Building Guarantees: Official certificates and insurance protect you against construction defects.
• Bank Guarantee: This ensures your deposit is protected if the project is delayed or cancelled.
• Title Deed: Confirm that the developer legally owns the land and has the right to build on it.

Why Choose a New Build Property?

Buying a newly built home in Spain offers several advantages over resale properties:

• Energy Efficiency: New homes are better insulated and equipped with modern, energy-saving technologies.
• Low Maintenance: Since everything is brand new, you’ll face fewer repair costs in the first few years.
• Modern Design: New builds follow the latest architectural trends and use sustainable materials.
• Warranty: Most new homes in Spain come with a 10-year structural warranty, giving you peace of mind.

How Does Buying a New Build Work?

With new developments, you’re often purchasing off-plan — meaning construction may still be underway. The process typically looks like this:

• Choose a Project: Select a development based on location, property type, and amenities.
• Reservation: You’ll pay a reservation fee (typically €3,000 – €6,000) to secure the property.
• Preliminary Contract: After reserving, you’ll sign a purchase agreement and pay a deposit of 10–20%.
• Construction & Payments: Payments are made in stages during the construction, as outlined in your contract.
• Completion & Transfer: Once finished, you pay the remaining balance, and the property is officially registered in your name.

How Can a Real Estate Agent Help?

A real estate agent who specializes in Spanish new build projects can support you in several key ways:

• Project Selection: Helping you choose a reputable developer and desirable location.
• Contract Review: Working with a legal advisor to verify the purchase agreement and guarantees.
• Negotiations: Often able to negotiate extras like furniture packages or property upgrades.
• Construction Oversight: Providing regular updates and inspections throughout the building process.

Check out our detailed cost analysis overview for more financial insights.

Thinking about buying a house in Spain with a mortgage? You’re not alone. More and more foreign buyers are financing their dream homes through Spanish or international banks. But the process works differently than in countries like the Netherlands or Belgium.

In this 2025 guide, we’ll cover everything you need to know — from Spanish mortgage rules to double mortgage options and tips for getting the best deal.

What Are the Key Requirements for a Spanish Mortgage?

If you’re not a resident of Spain, expect stricter conditions than locals. Here’s what to prepare for:

• Own contribution: You’ll typically need to invest 30–40% of the purchase price from your own savings.
• Extra purchase costs: Budget 10–15% extra for taxes, notary, and legal fees.
• Insurance: Spanish lenders often require both home insurance and life insurance tied to the mortgage.
• Stable income: Banks need proof of steady earnings and a good credit score.
• Loan-to-value (LTV): Most Spanish banks offer up to 70% financing for non-residents.

Spanish Mortgage Basics at a Glance

Can You Use a Dutch Mortgage to Buy Property in Spain?

Yes — some buyers use an additional mortgage on their Dutch property to finance their Spanish home. This is known as a double mortgage.

Advantages:

• Possibly lower interest rates
• Avoid dealing with Spanish banks and bureaucracy
• Keep financing under familiar Dutch laws and contracts

Disadvantages:

• Two mortgages = higher monthly payments
• Dutch banks may be cautious about second mortgages
• No legal protection under Spanish property law

How to Get the Best Mortgage Deal in Spain

• Compare Offers: Reach out to multiple banks (e.g., Sabadell, CaixaBank, BBVA).
• Negotiate Rates: Don’t accept the first offer — interest rates are often negotiable.
• Work With a Mortgage Advisor: Local experts know how to get better conditions.
• Review All Fees: Watch for setup fees, appraisal costs, early repayment penalties.

Pro Tip: Use a Bilingual Advisor

A Dutch- or English-speaking mortgage advisor who understands Spanish law can be a huge asset — especially when reading contracts, negotiating terms, and communicating with lenders.

 Need Help Securing a Mortgage in Spain?

At Huis Costa Blanca Kopen, we’ve helped hundreds of Dutch and Belgian clients buy property in Spain — with or without a mortgage.

We work with trusted mortgage advisors and local banks to help you:

• Get pre-approved
• Understand all costs
• Find the best mortgage conditions

Buying a house in Spain is a dream for many. Whether you’re looking for a holiday home, planning to move permanently, or investing in real estate, being well-prepared is crucial. The home buying process in Spain differs significantly from that in the Netherlands or Belgium.

In this guide, we’ll highlight the most important things to keep in mind when purchasing property in Spain.

Define Your Purpose and Budget

Why do you want to buy a home in Spain?

Before you start your property search, it’s important to clarify your goal:

• Holiday home: Will you use it for your own vacations or also rent it out?
• Emigration: Do you plan to live in Spain permanently and need full access to local services?
• Investment: Is your main goal to rent the property out for return on investment?

Your purpose will impact your decisions regarding location, property type, and legal requirements.

What is your budget?

In addition to the purchase price, consider these extra costs:

• Transfer tax or VAT (6–10%, depending on the region)
• Notary and registration fees (1–3%)
• Legal and agent fees (1–5%)
• Annual property taxes and maintenance

Plan for 10–15% extra on top of the purchase price for additional costs.

Choose the Right Location

Spain offers many attractive regions, each with its own unique character:

Costa Blanca (Alicante, Torrevieja, Benidorm)

• Affordable property prices and lots of sunshine
• Large Dutch and Belgian expat community
• Plenty of new construction and modern infrastructure
• Some areas are very touristy

Costa del Sol (Marbella, Málaga, Estepona)

• High-end amenities and luxury neighborhoods
• Strong short-term rental potential
• Property prices are typically higher

Balearic Islands (Mallorca, Ibiza, Menorca)

• Stunning nature and exclusive properties
• Popular with expats and investors
• Expensive and stricter rental regulations

Costa Cálida (Murcia, Cartagena, La Ribera)

• Affordable prices and sunny climate
• Authentic Spanish vibe with less mass tourism
• Growing infrastructure and development
• Milder winters than Costa Blanca

Also consider proximity to airports, hospitals, shops, and beaches.

Legal Checks Are Crucial

Buying property in Spain is not the same as in your home country — and legal risks can be significant if you’re not careful.

1. Hire an independent lawyer

It is common (and highly recommended) to hire a local real estate lawyer to help avoid legal issues such as unpaid debts or illegal construction.

2. Make sure the property is legal

Your lawyer should verify:

•  The property is correctly registered in the Land Registry (Registro de la Propiedad)
• There is a valid Title Deed(Escritura Pública) signed by a notary
• A valid Certificate of Habitability(Cédula de Habitabilidad) is present
• There are no outstanding debts or mortgages

3. Check if a rental license is required

If you plan to rent out your home, know that many regions in Spain require a tourist rental license. Without it, you could face fines up to €30,000. Some areas also impose extra regulations and fees.

How to Finance Your Property in Spain

1. Can foreigners get a mortgage in Spain?

Yes. Spanish banks do offer mortgages to non-residents, typically with these terms:

• Up to 70% financing of the property’s value
• Loan terms between 20 and 30 years
• Average interest rates between 2% and 4%

2. What documents do you need?

To apply for a mortgage in Spain, prepare the following:

• NIE Number (Foreigner ID in Spain)
• Passport or ID card
• Proof of income and tax returns
• Bank statements

Some buyers also finance their Spanish property through a second mortgage in the Netherlands or Belgium.

One-Time Purchase Costs

• Transfer Tax: 6–10%
• Notary Fees: 0.5–1%
• Land Registry Fees: 0.5–1%
• Legal Fees: 1–2%
• Real Estate Agent Fees: 3–5%

Extra Costs If You Plan to Rent Out Your Property

Renting your home brings in income, but it also comes with additional expenses:

• Rental License: Mandatory in many areas (like Costa Blanca). Fees vary by municipality.
• Income Tax on Rental Income:
  • EU residents pay 19% on net rental profit (after deducting eligible expenses)
  • Non-EU residents pay 24% with no deductions
• Cleaning and Management Fees:
  • If you hire a local company to manage keys, guests, and cleaning, expect to pay €50–€150/month

Want the full buying process explained step by step? Contact us today and get your personalized guide.

When buying a home in Spain, one of the first decisions you’ll face is whether to choose new build (off-plan) or resale (existing) property. Both options come with their own set of advantages and disadvantages, depending on your budget, lifestyle, and future plans.

In this guide, we’ll explore the key differences to help you make the right choice.

Which Option Suits You Best?

The decision between a new build and a resale property largely depends on your personal preferences:

• Want to move in right away and live in an established neighborhood? A resale home is your best bet.
• Prefer a modern, energy-efficient home with no immediate maintenance? Go for new build.
• Want more control over layout and finishes? New build properties often offer customization options.

Benefits of Buying a New Build in Spain

New build homes are a popular choice among buyers looking for modern living, energy efficiency, and low maintenance. Here are the main advantages:

• Energy-efficient and sustainable: Built to meet the latest energy standards with better insulation and modern systems.
• Modern design and materials: New homes feature contemporary architecture and high-quality finishes.
• No hidden issues: Everything is brand new, so there are no surprise repairs or urgent renovations.
• Customizable finishes: Often, buyers can select finishes, layouts, and upgrades during the construction phase.
• Warranty and legal protection: Most new builds in Spain come with a 10-year structural guarantee.

Benefits of Buying a Resale Property in Spain

Resale properties offer unique charm and often benefit from prime locations and faster availability. Key benefits include:

• Faster move-in: You can usually take possession shortly after signing.
• Established neighborhoods: Existing homes are often located in mature areas with developed infrastructure and fewer construction sites nearby.
• Room for negotiation: Sellers are often more open to price negotiations.
• Traditional Spanish character: Many resale properties feature authentic elements like ceramic tiles, wooden beams, and inner courtyards.

Costs and Investment Potential

From a financial perspective, both options have their pros and cons:

• New build: Lower maintenance and energy costs, but often higher purchase price and taxes.
• Resale: Usually more affordable upfront but may require renovations and have higher running costs.

Investment value:

• New builds often appreciate faster, especially in up-and-coming areas.
• Resale homes depend heavily on location and property condition for long-term value.

So, What’s the Best Choice?

Whether you choose a new build or a resale property in Spain, each offers unique advantages. The right choice depends on your needs, budget, and future plans.

Looking for personalized advice or comparing specific properties?

Get in touch with us to discuss your options and find the best fit for your Spanish property journey.

What You Need to Know

Buying a house in Spain is a dream for many. Whether you’re looking for a holiday home on the Costa Blanca or planning to move permanently, it’s important to look beyond the purchase price and consider the annual costs.

On this page, we outline all fixed and variable costs so you can get a realistic picture of what a property in Spain will cost you each year.

Property Taxes in Spain

IBI (Property Tax)

In Spain, you’ll pay IBI (Impuesto sobre Bienes Inmuebles) annually — similar to municipal property tax in the Netherlands.

• The amount is based on the cadastral value (valor catastral) of your property.
• The rate usually ranges between 0.4% and 1.1%, depending on the municipality.
• For an average property on the Costa Blanca, IBI typically ranges from €200 to €800 per year.

BASURA (Waste Collection Tax)

Most municipalities charge an annual waste collection fee (tasa de basura):

• This amount varies by region, usually between €50 and €200 per year.

Non-Resident Income Tax (IRNR)

If you own a second home in Spain but don’t live there permanently, you are considered a non-resident taxpayer.

• You pay a deemed income tax (IRNR – Impuesto sobre la Renta de No Residentes), even if you don’t rent out the property.
• The base is usually 1.1% to 2% of the cadastral value, depending on whether the value was revised after 1994.
• Tax rate is 19% for EU/EEA residents, 24% for others.

Example: If the cadastral value is €100,000, you’ll pay between €209 and €420 per year in IRNR.

Wealth Tax (Impuesto sobre el Patrimonio)

In some cases, wealth tax applies to properties in Spain:

• The first €700,000 per person is tax-free.
• Above that, rates range from 0.2% to 3.5%, depending on the region.
• This does not apply to most average holiday homes.

Fixed Utility Costs

Electricity

Costs depend on your usage and the selected tariff.

• For occasional use (e.g. holiday home), expect around €50 to €100 per month.
• If using air conditioning or electric heating, this can increase significantly.

Water

Water is relatively affordable in Spain.

• Monthly bills are usually €20 to €50.
• In some areas, it is billed quarterly.

Internet & TV

• Internet packages in Spain typically cost between €30 and €60 per month.
• Many providers offer bundled deals with TV and mobile.

Insurance Costs

Home Insurance (Seguro de Hogar)

Not mandatory, but highly recommended.

• Annual cost ranges from €150 to €500, depending on coverage and property value.

Contents Insurance

If you also want to insure your furniture and valuables:

• Expect €100 to €300 per year, depending on coverage.

Community Fees (Gastos de Comunidad)

If you own an apartment or a home in a residential community (urbanización) with shared amenities like a pool, garden, elevator, or security:

• Annual fees range from €300 to €2,000, depending on the facilities.
• More luxury = higher fees (e.g., 24/7 security, pools, gyms).

Maintenance Costs

Owning a home in Spain means regular upkeep, especially due to sun and coastal weather conditions.

• Plan for €500 to €2,000 per year for general maintenance (e.g., painting, small repairs, garden).
• Pool maintenance alone costs between €800 and €1,500 annually.

Additional Costs If You Rent Out Your Property

If you plan to rent out your home, extra expenses apply:

Rental License

• Required in many regions (e.g., Costa Blanca).
• Costs vary by municipality.

Rental Income Tax

• EU residents: 19% tax on profit (after deducting allowable expenses).
• Non-EU residents: 24% flat rate, no deductions allowed.

Cleaning & Property Management Fees

• If using a local company for key holding and cleaning, expect €50 to €150 per month.

Rental Tips: What to Know When Renting Out Your Property in Spain

Owning a home in Spain can be more than just a dream vacation spot — it can also be a profitable investment if you rent it out. However, renting out property in Spain comes with specific regulations, tax obligations, and management challenges that you need to understand to maximize your income and avoid legal issues.

Property Management & Maintenance

A rental property requires regular care and oversight. Consider hiring a local property manager to handle key exchanges, cleaning, and small repairs. Setting clear house rules for tenants can prevent misuse, and conducting annual inspections helps spot potential problems early.

Licensing & Regulations

Many regions in Spain, such as the Costa Blanca and Costa del Sol, require a tourist rental license to legally rent out your property. These rules vary by autonomous community, so it’s essential to check local regulations or consult with a real estate expert. Renting without the proper license can result in significant fines.

Taxes on Rental Income

Non-resident property owners must pay taxes on rental income, typically 19% for EU residents, on net income after allowable deductions like maintenance and agency fees. Tax returns need to be filed quarterly with Spanish tax authorities.

Insurance & Liability

Protect your investment by securing landlord insurance covering property damage and liability. Verify whether your current home insurance policy includes rental activity, and consider legal assistance coverage to manage tenant disputes.

Rental Platforms & Strategy

Attract tenants using popular platforms like Airbnb, Booking.com, and Vrbo for short-term rentals. For long-term leases, working with a local agent can be beneficial. High-quality photos and engaging listings will increase your chances of securing bookings.

Want more personalized advice or assistance with renting out your Spanish property? Contact us today for expert help!