Are you thinking about buying a holiday home, retirement villa, or investment property in Spain? As a UK citizen, you can absolutely buy property in Spain, even if you are not a resident. However, the legal process, taxes, and required documentation can feel unfamiliar and sometimes overwhelming.
In this guide you will find everything you need to know before purchasing a property in Spain as a British buyer, including legal requirements, common pitfalls, costs, and how a qualified Spanish lawyer can protect your investment.
Can UK Citizens Buy Property in Spain?
First things first: can UK citizens buy property in Spain? Absolutely. There are no restrictions for British nationals, which means you’re free to purchase a permanent home, rental investment, or holiday retreat anywhere in the country.
Legal Requirements for UK Buyers
Do You Need a Spanish NIE Number?
Yes, the “Número de Identificación de Extranjero” (NIE) is mandatory for any property purchase, tax payment, or financial transaction in Spain. It’s your official identification number as a foreigner, and you’ll need it before signing contracts or completing the purchase.
The good news? A Spanish lawyer can obtain your NIE on your behalf, saving you the hassle of travel and paperwork.
In case you need more information, we’ve prepared a complete guide to the Spanish NIE here: What Is a NIE in Spain?
Do You Need Residency to Buy Property?
No, buying property and living in Spain are two separate things. You do not need to be a resident to purchase a home, and purchasing a home does not grant you a residency permit. So, if you’re planning to stay in the country for extended periods, different rules may apply depending on the length and purpose of your stay (for example, staying more than 90 days may require a residence permit). We can advise you on both the purchase process and your legal options if you intend to spend more time in Spain.
The Property Buying Process in Spain (Step-by-Step)
Step 1: Property Search
The first step, of course, is to look for the right property. We strongly recommend working with a reliable real estate agent, as they are your first point of contact with the property market. A good agent can guide you through the different areas and their key characteristics, helping you choose a location that fits your needs, whether you’re looking for a family-friendly neighbourhood or a more vibrant, lifestyle-focused environment. These are important factors to consider, and experienced agents are usually well equipped to assist you.
Step 2: Hire an Independent Lawyer in Spain
We recommend hiring an independent Spanish lawyer before signing any reservation agreement. If you haven’t done so yet, this should be your next step.
Unlike estate agents, who are primarily incentivised to complete the sale since their fees are usually paid by the seller only upon completion, your lawyer will act solely on your behalf, protecting your interests throughout the entire transaction. That’s why it’s essential to have a good lawyer working for you.
Your lawyer will review all contracts and legal documents, conduct thorough due diligence to ensure the property is free from debts or legal issues, and guide you through tax obligations and registration procedures. Having a trusted legal expert by your side can save you time, prevent costly mistakes, and provide peace of mind during your purchase.
Step 3: Due diligence
Due diligence is a crucial stage in the property buying process. Your lawyer will carry out comprehensive checks to verify that the property is free of any legal issues, debts, or encumbrances. This includes confirming the seller’s ownership, ensuring there are no unpaid taxes or mortgages, checking compliance with planning and zoning regulations, and verifying that the property is properly registered in the Property Registry. These investigations protect you from unexpected problems and give you full confidence before proceeding with the purchase.
Step 4: Signing a reservation agreement or “contrato de arras”
Once you’ve found your ideal property and lawyer, and she or he have carried out the due diligence, the next step is usually to sign a reservation agreement or an “arras” contract. This document secures the property for you and typically requires paying a deposit, which can range from a few thousand euros up to around 10% of the purchase price.
It’s important to understand that this contract is legally binding: if you proceed with the purchase, the deposit will be deducted from the final price; however, if you decide to withdraw without legal cause, you may forfeit this amount. This is the reason why we said before that we strongly recommend hiring a Spanish lawyer before signing any reservation or “arras” contract to ensure your rights are fully protected and the terms are clear.
Step 5: Signing the purchase contract at the Notary
Once the reservation agreement is signed, you will have an agreed period to prepare for the final purchase contract, which will be signed as a public deed before a Notary. This contract formalises the transfer of ownership and is a legal requirement in Spain. You may attend in person or appoint your lawyer to sign on your behalf using a Power of Attorney.
After signing the public deed before the Notary, you are legally the owner of the property, and you can then register the deed at the Property Registry, which provides public recognition of your ownership and legal protection against third parties.
Step 6: Paying Taxes and Registering the Property
After signing the purchase deed, the next step is to settle the applicable taxes and register the property in your name. In Spain, this typically includes paying the Property Transfer Tax (ITP) or VAT plus the Stamp Duty (Actos Jurídicos Documentados or AJD), depending on whether the property is second-hand or brand new, as well as notary and registration fees. Your lawyer will guide you through the process, ensuring all payments are made on time to avoid penalties.
Once the taxes are paid, the property must be registered at the Property Registry (Registro de la Propiedad), which officially records you as the legal owner and protects your rights. Completing these steps correctly is essential for a smooth and secure property purchase.
Total Costs Involved in Buying Property in Spain
What Taxes Will You Pay?
When buying property in Spain, the main taxes you will face depend on whether the property is resale or new.
- For resale properties, you will pay the Property Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP), which ranges between 6% and 10% depending on the region.
- For new properties, instead of ITP, you will pay Value Added Tax (VAT or IVA) at 10%, plus the Stamp Duty (Actos Jurídicos Documentados or AJD), which varies but usually ranges from 0.5% to 1.5%.
These taxes are in addition to notary and registration fees. Your lawyer will help you calculate the exact amounts and ensure all payments are made correctly and on time.
Other Costs
In addition to taxes, there are several other costs you should budget for when buying property in Spain:
- Lawyer fees typically amount to around 1% of the purchase price, covering legal advice and due diligence.
- Notary fees usually amount to around €1,200, depending on various factors.
- Property Registry fees generally range around €800, depending on various factors.
- It is also highly recommended to commission a technical inspection by a qualified architect (arquitecto técnico) to verify the property’s condition and identify any structural issues before purchase.
- You may incur fees for setting up a Spanish bank account, which is often necessary for managing payments and ongoing expenses.
- Additionally, if you’re transferring funds from GBP to EUR, currency exchange costs can vary and should be considered to avoid surprises. Your lawyer can help you understand and plan for all these expenses to ensure a smooth transaction.
Final questions
Can You Buy Property in Spain Without Travelling?
Yes, you can. It is entirely possible to buy property in Spain without being physically present, thanks to the use of a Power of Attorney. This document allows your Spanish lawyer to represent you throughout the entire process — from obtaining your NIE number and opening a bank account, to signing the purchase deed before the notary. Remote purchases have become increasingly common, especially for international clients. A reliable lawyer will keep you informed every step of the way and ensure the transaction is carried out securely and in full compliance with Spanish law.
What are the Most Common Mistakes to Avoid?
Buying property abroad can be exciting, but there are also common pitfalls to watch out for:
- Signing contracts without legal review: Even reservation agreements can be legally binding. Always have them reviewed by an independent lawyer before signing.
- Not conducting proper due diligence: Failing to check legal status, debts, or zoning issues can lead to major problems later.
- Underestimating total costs: Many buyers forget to factor in taxes, legal fees, notary costs, and ongoing expenses.
- Assuming property ownership grants residency: Owning a property does not automatically allow you to live in Spain full-time. Immigration rules still apply.
- Poor currency exchange planning: Small changes in exchange rates can mean big differences in what you pay. Working with a currency specialist can save you money.
Avoiding these mistakes will save you time, stress, and money, and make your experience much smoother.
Why Working With Us?
We are a Spanish law firm with years of experience helping British clients buy property in Spain safely and efficiently. We understand both legal systems, the language barriers, and the concerns that come with purchasing a home abroad. Our approach is clear, responsive, and always in your best interest: no hidden costs, no shortcuts.
From obtaining your NIE and reviewing contracts, to conducting due diligence and representing you at the notary, we take care of every legal step so you can focus on enjoying your new home. Whether you’re buying remotely or on-site, we act as your eyes, ears, and legal shield throughout the process.
When you work with us, you’re not just hiring a lawyer, you’re gaining a trusted partner who will protect your investment as if it were our own.
Contact us for a free initial consultation
Simply complete the form, and we’ll come back to you
Fill out the form and a member of our team will be in touch with you as soon as possible.
If you prefer speaking on the phone or email, you can reach us on:
Our team is available between 09:00-17:00 Monday to Friday (excluding Bank Holidays).