🏡 Essential Guide for Foreign Buyers Investing in Spain

Spain is one of the top destinations for foreign buyers seeking a second home, a rental investment, or simply to enjoy a Mediterranean lifestyle. If you're considering buying property along the Spanish coast—such as in Orihuela Costa, La Zenia, or Torrevieja—this guide is for you.

1. Who Can Buy Property in Spain?
Any person—resident or non‑resident, from inside or outside the EU—can purchase property in Spain. There are no restrictions on foreign ownership, though some formalities must be respected.

2. First Step: Obtain a NIE
The Número de Identificación de Extranjero (NIE) is essential for buying real estate in Spain. You can obtain it by:
- Applying in person at a Spanish police station
- Applying via a Spanish consulate in your country
- Authorizing a lawyer or gestor in Spain to obtain it on your behalf

3. Open a Spanish Bank Account
While not strictly mandatory, having a Spanish bank account simplifies payments for taxes, utility bills, community fees, and other local expenses.

4. Choose the Right Real Estate Agent

Work with a professional, experienced agent who understands your language and the local real estate market. At Ibero Homes, we provide personalized guidance throughout the process.

5. Legal Verification of the Property

Before signing anything, your agent or lawyer should check:

- That the property is free of mortgages, liens, or debts

- Correct registration in the Land Registry

- That all licenses and urban planning authorizations are in order

6. Reservation and Deposit Contract

Once you decide on a property, you’ll typically sign a reservation agreement (often €3,000–€6,000). Afterwards, a deposit (arras) contract is executed, usually with 10% of the purchase price, and a date is set for the final deed.

7. Signing Before a Notary

Both buyer and seller appear before a notary to execute the public deed of sale. Once signed and registered, you become the legal owner of the property.

8. Taxes and Acquisition Costs

Expect additional costs of approximately 10% to 13% of the purchase price, including:

- VAT or Transfer Tax (ITP) depending on whether the property is new or second hand

- Notary fees

- Land Registry fees

- Legal and agency fees

- Municipal capital gains tax (plusvalía), if it is agreed that the buyer pays it

9. What if I Don’t Speak Spanish?

No problem. The entire process can be handled with sworn translations, and many notaries allow signing with a certified translation. You can also provide a power of attorney so your representative can act on your behalf if you're unable to travel.

10. After the Purchase

- Register the property in your name

- Change title for utilities: water, electricity, waste, community charges

- Arrange home insurance

- If you are a non‑resident, file the Modelo 210 annually for non‑resident income tax

✅ Final Tips

- Never buy sight unseen or without someone you trust representing you

- Compare multiple locations and types of property

- Be clear about your objective: investment, vacation home, or full-time residence

At Ibero Homes, we guide our clients from the first property visit through all post‑purchase needs—utilities, documentation, insurance, renovations, and more.

Thinking of investing in the Costa Blanca? Contact us and we’ll assist you step by step, in your language.