The allure of Spain is no secret. With its Mediterranean coastline, charming villages, and vibrant cities, it’s easy to see why the country continues to be a magnet for international buyers. Whether it’s a second home in the sun, a long-term investment, or the beginning of your retirement plan, buying property in Spain can be a solid decision—if done right.
But before you start browsing listings in Mallorca or Marbella, there are a few legal and financial steps you simply can’t skip.
To help demystify the process, we spoke with Lucía Lagunas, an experienced real estate and immigration lawyer based in Spain, who has helped hundreds of international clients settle into their new Spanish homes. In this article, she walks us through the essentials: from obtaining a NIE to opening a Spanish bank account, and even considering your long-term tax and investment strategy with the help of Advisors AM.
Why Foreigners Are Still Buying in Spain
Spain remains one of Europe’s most attractive real estate markets for foreign buyers. According to the most recent government data, more than 14% of property purchases in Spain are made by international clients—with buyers from the UK, Germany, France, and increasingly the United States leading the charge.
Lucía explains:
“Many of my clients originally come looking for a vacation home—something small by the beach. But once they experience the lifestyle, healthcare, and affordability, they end up planning for retirement here.”
Step 1: You Need a Spanish NIE Before You Can Buy
One of the first things you’ll need before signing a property deed in Spain is the NIE (Número de Identidad de Extranjero)—a foreigner identification number required for all legal and tax-related activities in Spain.
This number is essential for:
- Purchasing property
- Opening a bank account
- Paying taxes
- Setting up utilities
- Signing legal contracts
You can apply for it in person in Spain or through a Spanish consulate abroad, but now there are also streamlined online options available. If you’re just starting, here’s a full guide on how to apply for a Spanish NIE online.
Lucía recommends applying as early as possible, even before you start visiting properties:
“We’ve had clients miss out on their dream homes simply because they didn’t have their NIE ready in time. It’s a small but crucial step.”
Step 2: Open a Spanish Bank Account
Another vital step is to open a local bank account, which is required to pay for the property, taxes, notary fees, and utilities. Most Spanish banks allow non-residents to open accounts with the proper documentation (including your NIE and passport), although some may request proof of income or a Spanish address.
Lucía’s team at MySpainVisa can also help with this:
“We work with several banks that are used to dealing with foreign buyers. Having someone help with the paperwork, especially if you don’t speak Spanish, makes the process much smoother.”
Step 3: Understand the Costs Involved in Buying
In addition to the property price, buyers should be aware of the following costs:
- Property Transfer Tax (ITP): 6–10% depending on the region (for resale properties)
- VAT (IVA): 10% on new properties + 1.5% stamp duty
- Notary fees: ~0.5–1%
- Land registry fees: ~0.5%
- Legal fees: Often around 1%, but depends on the lawyer
All of these can add 10–15% to the purchase price, so budgeting accordingly is key.
Why Having a Lawyer Is Essential
In Spain, a notary handles the public deed and official registration—but they do not verify whether the property is free of debt, legally built, or even owned by the seller. That’s where a lawyer comes in.
“A lawyer will ensure there are no hidden liabilities—such as unpaid taxes, illegal renovations, or zoning issues,” says Lucía. “We review all contracts and perform due diligence to protect our clients.”
You can read more about the full buying process here: how to buy a house in Spain
What About Residency and Immigration?
Buying property in Spain doesn’t automatically grant you residency, but it may help support your visa application.
Lucía and her team at MySpainVisa are specialists in both immigration and property law—two areas that often overlap. For example:
- Buying a property can strengthen your non-lucrative visa application
- It can support retirement visa requirements
- Or it can help transition from short-term stays to permanent residency
Lucía explains:
“Some clients buy first as non-residents and return regularly as tourists. After a few years, they decide to apply for long-term visas or retire completely.”
Having an immigration lawyer who understands the full picture is crucial—especially when coordinating timelines for visa approvals and property closings.
What Happens After You Buy?
Once the property is yours, there are still several steps to consider:
1. Register with the local town hall
This is called “empadronamiento” and is required to access many local services and apply for residency.
2. Set up utilities
Water, electricity, and internet providers will often require your NIE and bank account details.
3. Hire a gestor or administrator
They help manage ongoing bills, community fees, and even tax filings.
The Tax Angle: Don’t Ignore It
Spain has a complex tax system, and once you own property, you will be subject to local taxation—even as a non-resident.
Key taxes to be aware of:
- Non-resident income tax: Even if you don’t rent out the property, Spain charges an imputed income tax on second homes.
- Wealth tax: Applies to high-value assets, depending on your residency and total global wealth.
- Rental income tax: If you rent out your property, expect to pay 19–24% of net rental income (depending on EU/EEA status).
- Capital gains tax: Applies when selling property.
“We always recommend buyers consult a tax advisor before making the purchase, especially if the property is part of a larger investment or retirement strategy,” says Lucía.
Working With Advisors AM for Wealth and Tax Planning
For high-net-worth individuals or buyers planning for retirement, it’s smart to think long-term. That’s where Advisors Asset Management comes in.
Advisors AM is a trusted partner of Lucía’s law firm and specializes in:
- International tax planning
- Real estate investment structuring
- Wealth preservation strategies
- Cross-border estate planning
Whether you’re investing €200,000 or several million, their team can design a legal and tax structure that aligns with your financial goals.
“We’ve had many clients start with a second home, and then realize they want to restructure their assets, set up a trust, or prepare for succession. That’s where Advisors AM steps in,” says Lucía.
Vacation Home or Retirement Base?
Interestingly, Lucía told us that many buyers evolve over time:
- Year 1–2: They visit the property for holidays.
- Year 3–4: They spend several months a year there.
- Year 5+: They apply for residency or retire permanently.
“Buying a property is often the first step in a much bigger life change,” Lucía notes. “That’s why we always advise clients to think beyond the purchase.”
Final Tips Before Buying
- Do your due diligence
Hire an independent lawyer who works for you, not for the developer or agent. - Get your NIE and bank account in place early
These are prerequisites for nearly every part of the process. - Understand your tax obligations
Don’t get caught off guard by annual property taxes or wealth tax. - Work with local experts
From legal to financial, local expertise can make or break your experience.
In Summary
Spain is one of the most desirable countries in Europe for property investment and lifestyle relocation—and for good reason. But navigating the buying process, especially as a foreigner, requires preparation, patience, and the right legal support.
With professionals like Lucía Lagunas at MySpainVisa and the team at Advisors AM, international buyers have all the tools to make safe, strategic, and successful purchases in Spain’s real estate market.