Buying property in Spain: the process step by step, from offer to keys

Every Spanish purchase follows the same skeleton: private contracts first, public deed at the end. Understanding the four milestones — and what you risk at each — is most of what a foreign buyer needs to navigate the process confidently.

Step 0: the paperwork that unlocks everything

• NIE, the foreigner identification number — required for the taxes, the deed and the registry. How to get it.
• Spanish bank account, for the deposit transfers, the mortgage and the utility bills later.
• If you need financing, start the mortgage pre-approval now: it’s the longest branch of the critical path.

Step 1: reservation

Once the price is agreed, it’s common to sign a short reservation contract (reserva) with a small payment — typically €3,000-€10,000 — that takes the property off the market while lawyers do their checks. Before signing anything bigger, your lawyer should verify at the Land Registry (nota simple) that the seller owns the property and what charges — mortgages, embargoes — hang off it, plus community fees and IBI arrears (debts follow the property in Spain, with legal limits).

Step 2: the arras contract — where the money gets serious

The contrato de arras is the binding private contract. The usual regime, arras penitenciales under article 1454 of the Civil Code, applies only if the contract expressly says so — otherwise Spanish courts presume arras confirmatorias, under which the other party can demand completion plus damages. The penitencial regime works like this:

• The buyer pays a deposit, usually 10% of the price.
• If the buyer backs out: the deposit is lost.
• If the seller backs out: they must return double the deposit.

Everything relevant should be written here: price, completion deadline, who pays what, and — if you need financing — ideally a mortgage condition letting you recover the deposit if the loan is refused. Without that clause, a failed mortgage means a lost deposit.

Step 3: completion at the notary

The sale becomes real at the notary, where buyer (or their power of attorney), seller and — if there’s a mortgage — the bank sign the public deed (escritura pública). The notary verifies identities, the property’s registry status and that the money flows are documented. If you’re financing, you’ll have received the FEIN binding offer at least 10 calendar days before (14 in Catalonia, where the regional Consumer Code extends the period), a cooling-off period required by Ley 5/2019.

On the same day, the buyer typically hands over a banker’s draft, receives the keys, and the notary sends an electronic copy to the Land Registry.

Step 4: taxes and registration

After signing you have 30 working days or one month, depending on the region (Andalusia allows two months), to file and pay the ITP — or, on a new build, the AJD — via Modelo 600; the VAT itself is paid to the developer at completion. See the tax details. The gestoría or your lawyer then files the deed at the Land Registry. Registration takes a few weeks; you’re the owner from the deed, but registration protects you against third parties.

The realistic budget and timeline

• Money: price + 8-14% in taxes and fees (itemise yours with the calculator below) + your deposit margin if the bank finances 60-80%.
• Time: 4-8 weeks cash; 8-14 weeks with a mortgage. The NIE and the bank approval are the two clocks to start first.

Once the keys are yours, the meter starts on the annual ownership taxes — smaller numbers, but ones to know before you buy, not after.