This page goes deeper into the legal and financial aspects of the purchase described in buying property in Spain. The information is general: taxes depend on the autonomous community and change often, and for a significant purchase you should use an independent lawyer.
Who helps you
- The abogado, a lawyer, ideally independent of the agent and seller, checks documents, drafts or reviews contracts and can act for you under a power of attorney (poder notarial) if you are not in Spain.
- The gestoría handles administrative procedures: taxes, registration, transferring utilities.
- The notario gives the deed public form, verifies identities and powers, explains the legal consequences and checks the Registry, but does not carry out full planning due diligence.
- The Registro de la Propiedad records ownership and charges: only what is registered is enforceable against third parties.
Checks
- Nota simple from the Registry: owner, area, mortgages, attachments, easements.
- Catastro (cadastre): that the description matches reality.
- Planning status: that buildings and extensions are licensed and the property is not in a restricted area, especially for country homes and along the coast (the Ley de Costas).
- Occupancy and energy certificates, latest IBI receipts and a certificate from the owners' association showing no debts.
- For new or off-plan homes: building licence and a bank guarantee on payments made to the developer.
Purchase taxes
| Property | Tax | Rate |
|---|---|---|
| Resale | ITP (Impuesto de Transmisiones Patrimoniales) | from 6% to 10-11% depending on the autonomous community, with reductions for young people and families in some regions |
| New (first sale by developer) | VAT | 10% (21% for commercial premises and land) |
| New | AJD (stamp duty) | usually between 0.5% and 1.5% |
| Canaries, new | IGIC instead of VAT | lower rates than VAT |
Add notary and registry fees (typically a few thousand euros, depending on price) and lawyer or gestoría fees.
Mortgages
Mortgages (hipotecas) can be fixed, variable, linked to Euribor, or mixed. For non-residents banks usually lend up to 60-70% of the valuation (tasación). The 2019 mortgage credit law requires the bank to provide detailed documentation and the buyer to receive free advice from the notary before signing. Most mortgage set-up costs, except the valuation, are now borne by the bank.
Taxes after purchase
- IBI (Impuesto sobre Bienes Inmuebles), annual, paid to the town hall.
- Income tax: residents pay IRPF; non-residents pay IRNR, due even if the home is not let, on a deemed income, and on rental income.
- Wealth tax and, since 2023, the temporary large fortunes tax, only above high thresholds.
- On sale: capital gains tax and the plusvalía municipal, on the increase in land value.
Holiday lets and inheritance
If you want to let to tourists, check the rules of the autonomous community and town hall first: many cities and islands restrict or freeze new licences, and since 2025 the national single register of short-term rentals is compulsory. On inheritance, inheritance and gift tax varies greatly between communities; a Spanish will for assets in Spain simplifies matters. To set up a company see setting up a company.