Steps to Buying a New Build Property in Spain

We can assist you with every step of the process through our expert partners, who will give you free quotations for each step or you can arrange for your own representatives to do this for you.​​

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Detailed Steps:

1. Find a Property and Area:

   Narrow down your search to specific areas, if you can't come to Spain we can help with virtual property viewings. Find the new build property that meets your criteria. Be clear and understand what the quoted price includes and doesn't include with the agent or developer. 

2. Sign a Reservation Contract:

   This agreement reserves the property for a specified period and usually involves a non-refundable deposit of €5,000 to €10,000.

3. Get a Lawyer:

   Assign your chosen lawyer, who will perform due diligence checks to ensure the property is legally sound, including verifying permits, building regulations, and any encumbrances. With the right lawyer, they can do nearly everything for you if you give them power of attorney, which is why we recommend imont legal, who can also get you visa's and NIE.

4. Private Purchase Contract:

   Your lawyer will arrange the formal agreement which outlines the terms of the purchase, including price, payment schedule, and construction milestones. At this stage, the buyer pays a down payment of around 10% of the property's price—the down payment amount may vary depending on the seller or the situation of the construction. If the buyer backs out, they lose the deposit, while if the seller withdraws, they must return double the deposit as compensation. This should be done through your lawyer.

5. NIE Number:

   If you are a non-resident, you'll need to obtain a Spanish Non-Resident Identification Number (NIE).

6. Open A Spanish Bank Account: Once you receive your NIE, you’ll need to open a Spanish bank account to handle property payments, taxes, and utility bills. Your lawyer should be able to help you set up an account with one of our partner banks so that everything is in order.

7. Secure Financing:

   If you need a mortgage, arrange for it with a broker who can deal with international crossboard mortgages, most high street banks will not be able to assist with this.

8. Payment Schedule:

   Payments are typically made in instalments throughout the construction process, with a final payment upon completion

9. Sign the Public Deed of Sale (Escritura):

   This final document, signed before a notary, legally transfers ownership of the property. This is a process that is performed by all parties who check all the required paperwork and due diligence has been done before the signing in front of the notary. This can be done on your behalf if you agree to give your lawyer power of attorney. 

10. Register the Property:

    Register the property with the Land Registry (Registro de la Propiedad) to formally record the ownership transfer. This will be done by your lawyer.

11. Post-Completion:

    Handle post-completion tasks such as utility connections, obtaining the License of First Occupation, and any necessary snagging lists, This can also be done by your lawyer.

12. Taxes and Fees:

    You can generally average that all taxes and other expenses will usually add up to 10% to 15% of the purchase price. For new properties, you must pay Value Added Tax (IVA) at 10% of the purchase price and Stamp Duty (AJD), which is generally around 1.2%, though it varies by region. You also need to budget for legal and administrative fees. Hiring a lawyer costs between 0.5% and 1% of the purchase price, with a minimum of €1,000 to €2,000. Notary fees typically range from €300 to €1,200, while Land Registry fees cost between €400 and €600. These costs cover the official process of transferring and registering ownership, making your purchase legally secure. If your property is in a residential complex, you will also have to pay community fees for maintaining shared spaces such as gardens, swimming pools, and security services. Additionally, you must cover monthly utility bills like electricity, water, and gas, which vary depending on usage and provider.