Buying a Resale Property in Spain

Buying a resale property in Spain is a popular choice for expats looking to make their dream move a reality. Whether you're relocating permanently, seeking a holiday home, or investing for rental income, purchasing a second-hand property (as opposed to a new build) comes with its own unique set of challenges and considerations. From preparing your finances to signing the final deed at the notary, this guide walks you through every major step of the process — and how to protect yourself along the way.

Step 1: Getting Your Paperwork and Finances in Order

- Establishing Your Budget

Before you start browsing idealista or calling estate agents, the most important task is to define your budget. Don’t just consider the property price — you’ll also need to account for taxes, notary fees, legal representation, surveys, and possibly renovations. Most resale property buyers are advised to add an additional 12% to 15% on top of the purchase price to cover total acquisition costs.

- Mortgage Pre-Approval

If you're planning to finance the purchase with a mortgage, get pre-approved before you start house-hunting. Spanish banks typically lend up to 70% of the property’s value for non-residents. Having pre-approval puts you in a stronger negotiating position and can speed up the transaction process once you find a home you love.

Many expats use a mortgage broker, particularly one fluent in both Spanish and your native language. Be sure the broker is regulated by the Bank of Spain under the LCCI framework and holds valid ICI accreditation. A good broker can help you compare offers across multiple banks and avoid costly clauses.

- Hire an Independent Lawyer

Do not use a lawyer recommended by the estate agent. This is one of the most common — and potentially expensive — mistakes. Instead, hire an independent solicitor who works exclusively on your behalf, ideally one who specialises in property law (derecho inmobiliario) and speaks fluent English and Spanish.

A qualified property lawyer will conduct all due diligence, check for encumbrances or debts on the property, verify the title, and make sure urban planning regulations are met. Expect to pay around 1% to 1.5% of the purchase price in legal fees — money well spent to avoid major future headaches.

To find an English-speaking lawyer, the UK Government's list of legal professionals in Spain is a solid starting point.

- NIE Number

You cannot purchase property in Spain without an NIE (Foreigner Identity Number). It’s required for all financial transactions, including signing the deed and paying taxes. You can apply for an NIE in Spain at a National Police station, at a Spanish consulate abroad, or have your lawyer obtain one on your behalf through a Power of Attorney.

- Spanish Bank Account

You'll need a local bank account to handle payments such as deposits, taxes, and utilities. Most Spanish banks offer both resident and non-resident accounts. Bring ID, your NIE, proof of income, and documentation explaining the reason for opening the account — for example, a copy of your purchase reservation agreement.

Need help choosing a bank? Check our guide to opening a bank account in Spain.

- Power of Attorney (Optional)

If you're not in Spain full-time, consider granting Power of Attorney (Poder Notarial) to your lawyer so they can sign documents, open a bank account, or even complete the property purchase on your behalf. This can prevent delays and streamline the process if you're overseas during key stages of the transaction.

Step 2: Finding the Right Property

- Define Your Needs

Think long-term: are you buying to live, rent, retire, or invest? Will you need to be close to international schools, hospitals, or an airport? Do you want a coastal property or one inland? Are you prepared for renovation work, or do you want a turnkey home?

Some properties may look like bargains but come with issues — unpaid community fees, illegal extensions, or lack of proper registration. That’s why it’s important to define clear non-negotiables before you start viewings.

- Where to Search

Resale homes can be found via:

• Major property portals (Idealista, Fotocasa, Kyero)
• Local estate agencies
• Classifieds and expat forums
• “Se Vende” signs on properties (common in smaller towns)
• Word of mouth and private sales

Each method has its pros and cons. Private sellers might offer better prices but with less legal security. Portals are user-friendly but not always up to date. Local agents may have hidden gems not listed online.

- Choose Your Estate Agent Wisely

In Spain, estate agents are not tightly regulated. Anyone can become one, which is why due diligence is essential. Don’t assume an office or polished website means professionalism. Look for agents who:

• Have been operating locally for years
• Can provide references or client testimonials
• Understand the legal and bureaucratic process
• Are API (Agente de la Propiedad Inmobiliaria) or GIPE accredited

We recommend working with more than one agent. This keeps them competitive and gives you access to a broader selection of properties. Be upfront that you're working with others.

NEVER use a solicitor or surveyor recommended by your agent. There's a conflict of interest risk, especially in smaller towns.

Step 3: Making an Offer and Starting the Legal Process

- Building Surveys

Unlike the UK, building surveys are not standard practice in Spain — but they should be. If you’re buying a standalone property or older home, commission a qualified surveyor to check for:

• Damp and structural issues
• Boundary disputes
• Illegal constructions
• Utility connections and easements
• Outstanding debts or encumbrances (via Nota Simple)

A basic survey costs around €500, and a full structural report may be more. It’s cheap insurance against hidden problems that could cost you tens of thousands later.

- Offer and Reservation Contract

Once you’re satisfied with the survey and want to move forward, you’ll typically sign a reservation contract (documento de reserva) and pay a holding deposit — usually €3,000 to €6,000 — to take the property off the market.

This isn't legally binding but signals serious intent. It also gives your lawyer time to start due diligence without the risk of another buyer swooping in.

- Private Purchase Contract (Contrato de Arras)

Next comes the formal deposit contract, which is binding under Spanish law. You’ll typically pay 10% of the purchase price here. If you back out, you lose the deposit. If the seller backs out, they must return double the deposit to you — unless otherwise agreed.

At this point, the following should already be underway:

• Verification of ownership and property boundaries
• Confirmation the home is debt-free (no mortgage, liens, unpaid community fees or IBI)
• Review of energy certificate, Cédula de Habitabilidad, and any planning permissions
• Agreement on a final closing date

Your lawyer will also check the Nota Simple and cross-reference it with the Catastro register to confirm the property details are accurate and legally sound.

Step 4: Signing the Deeds and Understanding the Costs

- Closing at the Notary

The final step is signing the public deeds (Escritura Pública) at the notary’s office. You, the seller, your respective lawyers, and possibly your mortgage provider will be present. If you're abroad, your lawyer can sign using Power of Attorney.

The notary ensures everything is legal and that all taxes are paid. Once the deeds are signed, you’ll receive a temporary copy called the Copia Simple. The final Copia Autorizada will arrive days later and be used to officially register the property in your name at the Land Registry.

- Costs Involved When Buying a Resale Property

Here’s what you can expect to pay:

• ITP (Property Transfer Tax): 6% to 10% depending on the region
• Notary Fees: ~0.5% of the sale price
• Land Registry Fees: ~40% of notary fees
• Lawyer Fees: 1% to 1.5%
• Bank Mortgage Fees: Up to 1% (plus valuation and setup)
• Mortgage Valuation Survey: €400–€750
• Building Survey: €500+

As a rule of thumb, budget an extra 12% to 15% on top of the property price. Some buyers may be eligible for exemptions (e.g. under 35s in certain regions) — ask your lawyer.

- Don’t Forget the Ongoing Costs

• IBI (Property Tax): Annual, based on cadastral value
• Community Fees: Monthly or quarterly if buying in a building or shared development
• Home Insurance: Often required for mortgages
• Utilities Setup: Water, electric, gas, and internet
• Plusvalía Tax: May apply depending on capital gains

Learn more about IBI tax in Spain and Plusvalía capital gains rules.

Final Tips for a Smooth Purchase

• Never sign anything you don’t understand — have it translated if needed
• Be cautious of too-good-to-be-true listings
• Visit the property in person, ideally more than once
• Document all payments and never pay cash
• Double-check that utility bills and community fees are up to date

Buying a resale property in Spain can be a smart move — as long as you're well-prepared. With the right legal advice, financial planning, and local know-how, you’ll be holding the keys to your new home in no time.

Need Private Health Insurance for residency or a visa?

If you're buying a home in Spain and applying for residency, you’ll likely need proof of private health insurance with no co-payments — a common requirement for NIE applications, non-lucrative visas, and TIE card approvals.

We recommend the Sanitas Más Salud Family Plan, which is ideal for individuals, couples, and families relocating to Spain. It meets all visa requirements, includes access to top doctors and hospitals, and you can apply 100% online.

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