Buying a home is one of the most important financial and personal steps you'll take in your life. However, the process of buying property in Spain can generate doubts and uncertainty if you're not familiar with the stages, the required documentation, and, above all, the associated notary, registration, and tax costs.
To help you approach the process with complete confidence and without last-minute surprises, this guide to buying a house in Spain explains, step by step, the entire legal and practical process: from the first technical check to the day you move into your new home.
Step 1: Property Check
Once you've found the house or apartment that suits your needs, the temptation to pay a deposit to secure it is strong. However, before handing over any money as a reservation fee, it's essential to verify the legal, technical, and administrative status of the property.
Among the essential points you should review are:
- Property Registry Extract: To confirm who the true owner is and check if the property has any encumbrances (previous mortgages, liens, easements).
- Urban planning situation and licenses: Make sure there are no files of urban planning violations or non-compliance.
- Free of debts: Verify that the property is up to date with the payment of the IBI (Property Tax) and the community of owners fees.
- ITE or IEE of the building: Understand the technical inspection of the building to avoid surprises with future assessments.
- In some communities, the certificate of habitability.
- Proceeding with the status of the tourist license.
To learn more about this step, we recommend reading our detailed article: What to check before buying a house in Spain: a practical guide for foreigners
Step 2: The Formal Offer and Reservation of the Property
If the preliminary verification is favorable, the next step is to make an economic offer and formalize a reservation or earnest money document. This document aims to temporarily remove the property from the market while the definitive contract is prepared.
Essential precautions when signing the reservation:
- Reserve contribution: This is usually a modest amount (between €1,000 and €3,000).
- Document content: You must clearly specify the offered price, the deadline for signing the earnest money contract, and what happens to the money if the transaction falls through due to the seller or the real estate agent (for example, if they did not have the mandate they claimed to have).
- Watch out for unfair terms! Some real estate agencies include clauses stating that, even if the sale does not go through for reasons beyond the buyer’s control, the buyer must still pay the agency’s fees.
If you don't understand the scope of a clause or have questions about what you're drafting, seek legal advice before signing. Signing without prior advice could put your money at risk prematurely.
Step 3: Signing the earnest money contract
The earnest money agreement is a private document of great legal significance. In it, both parties formally agree to reserve the sale and pay a sum as a deposit (usually 10% of the total price of the home).
There are different types of down payments, but in the residential sector, the most common are:
- Penal clauses (Art. 1454 of the Civil Code): These allow either party to freely withdraw from the contract. If the buyer withdraws, they forfeit the amount paid. If the seller withdraws, they must return double the amount received.
- Confirmatory deposits: These serve as an advance payment toward the total price and do not allow for unilateral withdrawal unless expressly agreed upon.
- Penitential Deposits Under Catalan Law: Please note that in Catalonia, deposits are subject to different regulations and formalities, compliance with which is essential to ensure the buyer’s protection. These apply to any property purchased in Catalonia, even if neither party resides there.
Key clauses to protect the buyer
The earnest money agreement must provide for realistic contingencies. For example, it is essential to include a clause contingent on the granting of the mortgage: if the bank denies financing after having exercised due diligence, the buyer must have the right to recover 100% of the money paid without penalty.
Step 4: Obtaining a Mortgage (if applicable)
If you need financing to complete the purchase, this phase takes place at the same time as the preparation of the deed.
- Financial approval: The bank will analyze your risk profile, income, and solvency.
- Approved Appraisal: The bank will arrange for an official appraisal of the property (the cost of which is borne by the buyer, unless otherwise specified) to determine the financing percentage (typically 80% of the appraised value or the purchase price, whichever is lower).
- Once approved, the bank will provide you with the European Standardized Information Sheet (ESIS). You must have this document at least 10 days before signing at the notary's office to review it carefully or consult with your notary.
Step 5: Signing the Notarized Deed of Sale at the Notary's Office
The culminating event of the process is the signing of the deed before a notary, the moment when ownership officially changes hands.
- Choice of Notary: The law grants the buyer the right to choose the notary before whom the sale will be formalized. If you wish to sign the contract in a location other than where the property is located, it is important to specify this in the earnest money agreement.
- Signing and Payment of the Remaining Balance: The deed is executed after verification of the registry and cadastral documentation, as well as certificates confirming that all payments are up to date. The remaining balance of the agreed-upon price is typically paid by certified bank checks. or OMF transfer.
- Key Handover: Unless otherwise agreed, this ceremony marks the formal handover of the keys and the taking of possession of the property.
Step 6: Additional Fees and Taxes (How Much and When Are They Due?)
One of the most common questions we get at our firm is: How much does it cost to register a house, and when are the extra fees paid? As a general rule, you should expect to pay an additional amount ranging from 10% to 12% of the purchase price.a to cover taxes and processing fees.
Detailed breakdown of home buying expenses
- Taxes (The highest expense)
– Resale homes: Property Transfer Tax (ITP) is payable. The rate ranges from 6% to 10%, depending on the autonomous community where the property is located (and reduced rates may apply based on age or disability).
– Newly built housing: VAT is payable (10% nationwide, except in the Canary Islands, where IGIC applies) plus the Stamp Tax (AJD), which ranges from 0.5% to 1.5% depending on the region. - Notary, Registry, and Administrative Services
– Notary: Fees set by state tariff (usually between €600 and €1,000, depending on the property value and number of pages).
– Property Registry: Fixed fees for registering the home in your name (approximately between €300 and €600)
– Gestoría (Administrative Service): If you handle the process with a mortgage or hire an administrative service to settle taxes, their fees typically range between €300 and €500.Practical numerical example: Apartment of €200,000 (Second-hand)
To see the actual impact of the differences by Autonomous Community, let's analyze the purchase of a pre-owned home for €200,000:
Concept
Example in the Community of Madrid (ITP to 6%)
Example in Catalonia / Valencian Community (ITP to 10%)
Housing price
200.000 €
200.000 €
Stamp duty (ITP)
12.000 € (6%)
20.000 € (10%)
Notary (estimated)
800 €
800 €
Estimated registration
400 €
400 €
Administrative services (estimated)
400 €
400 €
Total Extra Expenses
13.600 € (~6,8%)
21.600 € (~10,8%)
Total Cost of Operation
213.600 €
221.600 €
Note: If the purchase requires a mortgage, the financial institution may require that the full amount be available on the day of signing.
When and how are these costs paid?
The legal deadline for tax settlement (ITP or AJD) and filing with the Property Registry is 30 business days effective the day after the public deed is signed. Typically, the administrative agency arranges for the funds to be made available at the time of signing and settles the payments within this timeframe.
Step 7: Post-sale and Moving: Supplies and Final Paperwork
Once the deed has been signed and the keys have been handed over, there are a few simple but essential administrative steps remaining:
- Transfer of Utility Accounts: You’ll need to contact the water, electricity, and gas companies to transfer the accounts into your name (or request service activation if they were previously disconnected). Have a simple copy of the deed or property abstract on hand.
- Homeowners association: Notify the administrator or president of the property of the change of ownership and provide your bank details for the collection of ordinary and extraordinary fees.
- Municipal Register and Property Tax (IBI) Change: Visit the City Hall to register your new address and ensure the taxpayer is updated for the following year's Property Tax (IBI).
Final step: Move into your new home!
With the legal procedures, charge verification, signing, and tax settlement completed, only the best remains: coordinating the move, organizing your spaces, and enjoying your new home in Spain with complete legal peace of mind.
IMPORTANT: If you plan to buy a home soon, you should protect yourself from sophisticated legal fraud. That's why we've drafted an exclusive guide on how to detect real estate scams and fraudulent earnest money contracts: Real Estate Scams in Spain: How to Buy Property Safely in 2026
Why is legal advice your best investment?
Most scams and problems in the purchase of a home occur because the buyer trusts the «good faith» and professionalism of the other party, whether the seller or the real estate agent. Unfortunately, that is not always the case.
What we do for you at MBT Abogados
- Complete audit of the property's registration status and encumbrances.
- Urban planning verification before the corresponding city council.
- Drafting and safeguarding the earnest money contract to avoid abusive clauses.
- Accompaniment until the signing at the Notary's office in the main cities of Spain.
In addition to these four essential steps to avoid scams and problems, at MBT Abogados we offer a comprehensive service of advice and support in the purchase of properties in Spain. Our team accompanies the buyer from the initial search to the signing before a notary, including:
- verify the condition of the property, the identity of the owner, that there are no debts, the registered description and limitations
- negotiation of the purchase price
- choice of notary
- obtaining the documents for signing at the notary's office
- review the reservation, earnest money, and purchase agreements.
- preparation of tax returns
- accompaniment at the time of signing
- any other function and advice necessary for the successful completion of the operation
If you believe you need assistance with buying or selling a property, don't hesitate to contact us at email or Whatsapp. Our headquarters are in Barcelona and we provide our services remotely throughout Spain. We also offer other services related to real estate, such as advice on buying a home in Spain from abroad.
