How buying a home in Spain works, step by step

Terms used

• IBI — The IBI is the yearly local property tax that the owner of a home pays to the town hall.
• Señal — The señal is a small reservation deposit that takes the home off the market for a short time.
• Arras — The arras are a deposit, normally about 10% of the price, paid when you sign the private purchase contract.
• FEIN — The FEIN is the bank's standard written mortgage offer, which you receive before meeting the notary.
• Escritura — The escritura is the public deed of sale, signed before a notary, which completes the purchase.
• ITP — The ITP is the regional transfer tax you pay when buying a resale home.
• AJD — The AJD is stamp duty, paid on new-build purchases together with IVA.
• IVA — The IVA is Spain's value-added tax, charged on new-build purchases.

Key rules

• Commitment: You become committed when you sign the arras contract, not at a simple reservation.
• Withdrawal: Unless the contract says otherwise, you can withdraw after signing arras by losing the amount paid.
• Tax return: The purchase tax return must be filed within 30 working days of the deed.
• Mortgage: If you need a mortgage, ask for a financing condition in the private contract.
• Ownership: The deed transfers ownership; Land Registry filing protects you against third parties but comes afterwards.

The short version

You are not committed when you make an offer or pay a small reservation. You become committed when you sign the arras contract. After that, backing out usually costs you money. Ownership passes at the deed before the notary, and the Land Registry comes last.

The steps in order

1. Search and viewings. You look at homes with agents or private sellers. Nothing binds you yet.

2. Offer and reservation. If the seller accepts, you usually pay a small reservation deposit (señal), often 1,000 to 6,000 euros or a few percent of the price. It takes the home off the market for a short time. Whether you get it back depends on its wording, so read it before paying. This is not yet the point of no return.

3. Checks by your lawyer. This takes 1 to 3 weeks. Your lawyer checks who owns the home and what debts or charges it carries, plus the community and tax paperwork. The documents list below shows what to collect. Do this before you sign the next step.

4. Private contract with arras. You and the seller sign this 1 to 2 weeks after the offer. You pay arras, normally about 10% of the price. This is where you become committed. Which kind of arras you agreed decides what happens if you pull out, as the decision below explains. If you need a mortgage, ask for a financing condition in this contract.

5. Mortgage, if you borrow. The bank values the home (1 to 2 weeks), approves the loan (2 to 6 weeks) and gives you its FEIN offer. You then meet the notary to go over the terms, and a 10-day cooling-off period applies.

6. Deed (escritura) at the notary. You sign the public deed, pay the balance by bank cheque or transfer, and receive the keys. This completes the sale and ownership passes to you. The deed usually comes 30 to 90 days after the private contract: about 1 to 2 months if you pay cash and 2 to 3 months with a mortgage.

7. Purchase tax. You pay ITP on resales, or IVA plus AJD on new builds. The return goes to the regional tax authority, normally through your gestor or the notary, within 30 working days of the deed. A gestor usually needs 1 to 2 weeks.

8. Land Registry. The deed is filed at the Registro de la Propiedad. Registration protects you against third parties, but ownership has already passed at the deed. Expect from about 2 weeks to 2 months or longer, depending on the registry.

9. Move-in admin. Transfer the utilities, the community of owners and the IBI into your name.

A resale normally takes 2 to 4 months from offer to finish.

If you are buying a new build

The steps are the same, but the money moves differently.

• You pay a reservation deposit, typically 3,000 to 6,000 euros.
• Within about 2 to 4 weeks you sign a private contract with a first payment of about 10% of the price plus IVA.
• You then make staged payments during construction. The developer must secure them with a bank guarantee or insurance. Make sure yours are covered.
• The building licence should already be granted. At completion the developer obtains the certificate of completion and the first occupancy licence.
• The deed follows the licence by 1 to 3 months. You pay the balance and get the keys, usually on the same day.

Off-plan builds commonly take 18 to 36 months from contract to handover. Delays are common, so check the delivery date and the delay terms before you sign.

Where you can still walk away

• Before the arras contract: you risk at most your reservation deposit, depending on its wording.
• After it: unless the contract says otherwise, you can withdraw by losing the amount paid. If it provides for confirmatory or penal arras, both sides must complete or face damages, and either can demand the sale go through.
• After the deed: the home is yours. Registry filing and taxes are things you must complete, not choices.

The checklist, documents and questions below cover the details of each step.

Choosing between options

Which type of arras do you agree in the purchase contract?

• Withdrawal arras (the default): Choose this if you want a way out: you can withdraw by losing the amount paid, and the seller can withdraw by returning double.

• Confirmatory arras: Choose this if you want the sale fixed as a part payment: both sides must complete or face damages, and either can demand completion.

• Penalty arras: Choose this if you want a set penalty for failing to complete, alongside the duty to perform the sale.

Unless the contract says otherwise, arras allow withdrawal; if you want a firm commitment or a financing exit, the contract must say so in writing.

Buying a Spanish home: the steps in order

• Search and view homes with agents or private sellers: At the start, before you commit to anything

• Make an offer and, if accepted, pay a small reservation deposit to the seller or agent, usually a few percent of the price or about 1,000 to 6,000 euros: Right after your offer is accepted

• Have your lawyer check the property: nota simple (an extract from the Land Registry showing owner and debts), title, charges, community of owners certificate, IBI (local property tax) receipt and energy certificate. Foreign buyers also need an NIE (foreigner ID number): Before you sign the arras contract

• Buyer and seller sign the private purchase contract with arras, normally about 10% of the price, paid by you: After the checks are done and before the deed

• Sign the public deed (escritura) before a notary, pay the balance by bank cheque or transfer and receive the keys: On the completion day, after any mortgage cooling-off period

• File the deed at the Land Registry (Registro de la Propiedad). Your gestor or lawyer normally does this once tax is paid, or the bank's gestor if a bank is lending. You can also file it yourself: After the tax is paid, since the Registry will not register the deed without proof of payment or exemption. The filing holds your priority for 60 working days

• The registrar checks the deed and registers you as owner, or sends a notice of defects to correct: Within 15 working days of filing by law; in practice 1 to 3 weeks in efficient registries, 4 to 8 weeks in busier ones, and longer if defects need fixing

• Ask for an updated nota simple to confirm you are the registered owner: Once the registration is finished

• Transfer utilities, community of owners fees and IBI into your name: After the deed, once you have the keys

Documents you need

• Nota simple: an extract from the Land Registry showing the owner, title and any charges or debts on the home.

• Community of owners certificate, issued by the building's administrator, showing whether the seller has unpaid community fees.

• Latest IBI receipt (the yearly property tax) from the seller, showing it is paid.

• Energy certificate for the home, provided by the seller.

• Cédula de habitualidad, the habitability certificate, where your region requires it for the sale.

• Your NIE, the foreigner identification number, if you are not Spanish.

• For a new build: the certificate of completion (certificado final de obra) and the first occupancy licence (licencia de primera ocupación), obtained by the developer before the deed.

Checklist

• Ask your lawyer to check the nota simple, title and charges before you sign the private contract.

• Check the wording of the arras clause to see whether you can withdraw by losing the amount paid or must complete the purchase.

• Confirm that the bank has given you its FEIN offer and that you have met the notary before the deed.

• For a new build, confirm the building licence is granted and that the developer secures your staged payments with a bank guarantee or insurance.

• Check the delivery date and delay terms in a new-build contract.

• Make sure your gestor files the purchase tax return within 30 working days of the deed.

• Confirm the deed is filed at the Land Registry and arrange the transfer of utilities, community of owners and IBI.

Frequently asked questions

How long does a resale purchase take from offer to registry inscription?

A resale normally takes 2 to 4 months from offer to registry inscription. The deed usually comes 1 to 2 months after the contract with cash and 2 to 3 months with a mortgage. Registry inscription alone can take from about 2 weeks to 2 months or longer.

How long does an off-plan new build take from contract to handover?

An off-plan new build commonly takes 18 to 36 months from contract to handover. The deed usually follows the first occupancy licence by 1 to 3 months, and keys are normally handed over on the day of the deed. Delays are common, so check the delivery terms in your contract.

Do I own the home once the deed is signed, or only after registry inscription?

You own the home once the deed is signed and the keys are handed over, because registry inscription is not required for ownership to pass. Inscription protects you against third parties, so make sure your gestor or lawyer files the deed.

What should I add to the contract if I need a mortgage?

Ask your lawyer to include a financing condition in the contract if you depend on a mortgage. Bank approval takes 2 to 6 weeks, and the valuation 1 to 2 weeks, so allow for that before the deed date.