Spain Real Estate
THE BUYING PROCESS IN SPAIN
Invest in Spain – with ReACTION it is simple and safe!
Our team is ready to help you with every question about property in Spain
By choosing ReACTION you get not only professional help but exceptional personal attention throughout the buying process. Our team plans your visit in advance, shortlists only the properties that best match your requirements, and accompanies you at every step – from the first viewing to the signature at the notary.
The reservation agreement – the first step to a safe purchase
The reservation agreement is a standard document that temporarily takes the property you want off the market. It is a firm basis for beginning the legal review. The agreement sets out:
- Buyer and seller details;
- The property address and price;
- The planned signing and completion dates;
- Any additional conditions;
- The terms for refunding the reservation fee.
Legal review and contracts
Your lawyer:
- Checks all the property documents;
- Confirms the developer holds a bank guarantee (protecting your payments);
- Prepares and agrees the purchase contract;
- Helps you sign all the official documents.
The purchase contract clearly defines every condition: the seller's legal status, the property's characteristics, the full address, all relevant details and the transaction date.
New build (off-plan or newly completed)
Using all of the services listed below, indicative costs come to roughly 12–13.5% of the property price:
12–13.5%
| Cost | Percentage of the price | Notes |
|---|---|---|
| VAT | 10% | New build only |
| AJD (stamp duty) | ~1.2% | Mandatory, paid to the state |
| Notary | ~0.3 – 0.5% | Mandatory, depends on the property value and the complexity of the documents |
| Land registry | ~0.2 – 0.4% | Mandatory, depends on the property price and is paid to register ownership in the land registry |
| Legal services | ~0.5 – 1% | Recommended but not mandatory |
Example:
Buying a new-build apartment for €200,000, the costs would be roughly:
- VAT
- €20,000
- AJD
- €2,400
- Notary
- ~€800
- Registry
- ~€500
- Lawyer
- ~€1,500
Additional total: about €25,000
This example is indicative and the amount may change depending on legislation and the specifics of the property, so we always recommend consulting specialists to establish the exact costs.
Resale (previously owned) property
Using all of the services listed below, indicative costs come to roughly 10.5% of the property price:
~10.5%
| Cost | Percentage of the price | Notes |
|---|---|---|
| Property Transfer Tax (ITP) | 7% | Mandatory, the main tax on resale property |
| Notary | ~0.3 – 0.5% | Mandatory, depends on the property value and the complexity of the documents |
| Land registry | ~0.2 – 0.4% | Mandatory, depends on the property price and is paid to register ownership in the land registry |
| Legal services | ~0.5 – 1% | Recommended but not mandatory; lawyers carry out the document checks and represent you in the process |
| Translator or gestor services | ~€100–300 or included | Recommended if a foreign buyer needs help with the process |
| Mortgage fees (if taking a loan) | Bank fees + charges | Where applicable – including the bank's arrangement fee, any translations required and so on |
Property transfer tax (ITP): 7% of the higher figure – the purchase price or the official value (valor de referencia). A reduced rate of 2% is possible if the buyer is a registered property trader (for example a developer or landlord) and further conditions are met (registered activity, the property entered on the balance sheet, a public deed, sale of the property within 5 years and so on).
Example:
Buying a resale apartment for €200,000, the costs would be roughly:
- ITP
- €14,000
- Notary
- ~€800
- Registry
- ~€600
- Lawyer
- ~€1,500
- Other costs
- ~€200–300
Additional total: about €17,500
This example is indicative and the amount may change depending on legislation and the specifics of the property, so we always recommend consulting specialists to establish the exact costs.
Financing options
Planning to buy with a mortgage? We can help. We work with local banks and independent mortgage advisers who will walk you through the best offers.
Additional services
Our partners are ready to help with everything from interior design to rental management. We want you to feel confident and comfortable once you own a home in Spain. Get in touch for a consultation and we will answer every question you have.
Your consultant for the Spanish market
Darius Ringaitis
Residential Real Estate / ReACTION Partner
Any questions about the buying process, taxes or financing in Spain — get in touch and we will talk it through.
Quick contact