The Spanish buying process isn't complicated, but it is different: there is no escrow agent, the notary checks less than in Austria or Germany, and the pre-contract binds harder than many think. Know the sequence and you buy relaxed.
Before your first offer you need three things: the NIE number (tax identification for foreigners), a Spanish bank account for price, taxes and later utilities, and an independent lawyer (abogado) who represents only you — not the seller, not the agent. We work with English- and German-speaking firms in Palma we have known for years.
Once you have decided, the property is taken off the market for two to four weeks against a reservation payment (a few thousand euros depending on price). The checks run during this time. Important: the reservation should be conditional — refundable if due diligence reveals defects. Without this clause the money is lost on withdrawal.
The lawyer pulls the nota simple from the land registry (Registro de la Propiedad): owner, area, charges, mortgages, embargoes. Then the match with the cadastre (Catastro): does the registered area match reality? Are there extensions, pool, garage without registration? Further: building permits and any legalisation, cédula de habitabilidad (habitability certificate), energy certificate, IBI payment proof, no debts with the community, utility contracts. For fincas also water rights, wells, protected zones. Whatever comes up is resolved before the arras or negotiated into the price.
The contrato de arras is a private pre-contract with a deposit, usually 10% of the price. In the common form of arras penitenciales: if the buyer withdraws, they lose the deposit; if the seller withdraws, they repay double. The contract fixes price, inventory, handover condition, deadlines to the notary and conditions (e.g. a financing clause — which Spanish sellers rarely accept). From here the purchase is practically binding; that is why the checks come before, never after.
The notary appointment in Spain is short: the notary reads the escritura pública de compraventa, checks identities, powers of attorney and the current nota simple, the price is paid by banker's draft or proven transfer, keys are handed over. The notary does not advise — your lawyer does that beforehand. If you cannot travel, your lawyer represents you with a notarial power of attorney (poder), which can also be executed before an Austrian, German or British notary with an apostille.
Within 30 days the acquisition taxes are due — ITP for resale, IVA and AJD for new builds (purchase costs). Then the escritura is registered in the land registry (takes a few weeks), utilities (power, water, gas), IBI and community are transferred, insurance is taken out. With a non-resident seller the buyer withholds 3% of the price and pays it to the tax office (Modelo 211) — the lawyer handles this.
Signing a reservation without a withdrawal clause. Arras without complete due diligence. Calculating the price from portal listings instead of closed deals. Forgetting the costs. Planning holiday lets where they aren't allowed. After the purchase: nobody on site keeping an eye on property and post — official letters in Spain have short deadlines.
No NIE, no purchase. Routes via consulate, police or power of attorney, timing and cost.
→Around 10–13% comes on top. Which tax applies when — with calculator.
→Why the most beautiful finca is worthless if the extension, pool or well isn't legal.
We accompany you from search to escritura — and on site afterwards.
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