Buying a Property in Spain

Below we list the information regarding the legalities, fees/taxes and mortgage application.

Legalities of a Property Purchase in Spain

Having chosen your Homes Almeria property, we would be able to introduce you to a local lawyer who check all that all legal matters regarding your property purchase in Spain are in order. The lawyer will undertake the necessary legal due process on your property to ensure there are no outstanding debts, tax arrears or embargoes. There is now a choice of several local English-speaking lawyers with the relevant experience in Spanish property law.

A 10% holding deposit usually required when the Purchase Contract (Compra-Venta) is signed. This Contract is valid for c.90 days, by which time the Title Deeds (Escritura) should be ready to sign signed and the final payment made. This is signed at the local Notary's office.

Taxes and Fees

Property purchase in Spain has the following cost structure.

As a rule of thumb there is about 10% to add to declared purchase price of the property, accounted for as below.

Transfer Tax

A transfer tax of 7% ( Spanish Stamp duty equivalent) is applied to all re-sale properties in Spain. For newly built Spanish properties, IVA (Spanish VAT) is charged at 7% of the declared price.

Lawyer's Fees

This should cost about 1000 €, this will depend on the amount of work involved.

Notary Fees

Notary fees are paid according to a fixed charging scale and will cost from 350 to 650 €, depending on the declared price. This is due on signing the Escritura, and it must be paid before release of original documentation.

Land Registry Fees

Land registry fees can be between 200 and 500 €, depending on the declared price and work undertaken, with this the Escritura is inscribed in your name at the Registrar and is due within 30 days of signing.


We have an arrangement with Global Currency Exchange Network (GCEN) to offer clients competitive exchange rates when making large payments. GCEN can save clients significant amounts compared with high-street banks due to their very sharp rates and low costs.

The Mortgage Process


Mortgage interest rates in Spain follow the European Bank (Euribor) rates plus a percentage add-on, so they frequently differ from those in the UK. The Euribor rate is fixed by the market, the percentage add-on can be negotiated. Initial Set-Up charges can be higher, so you need to ask your bank about these at the early stages of a mortgage application (see costs below).


The process is similar to that in the UK except that you will need to open an account with them. The bank will then need evidence of income — typically pay slips for the last 3 months and a P60. If you are self-employed, you will need to provide the last 3 years audited accounts and copy bank statements - both business and personal. With all this documentation the bank can then make an offer in principle.

The Escritura must be registered so that the bank can obtain a Nota Simple, the document which gives details of property registered and any debts outstanding on that property (if any).

Clearly the mortgage will not cover the purchase costs of c.10% on top of the price of the property.


The bank will send their approved valuer to make a detailed valuation report of the property, this costs 300 — 400 €. Spanish banks will lend up to 70% of the lower of the cost of the property or the independent valuation. Set-Up costs can be 1% of the mortgage value. As with much of the banking world mortgages in Spain are much more difficult to obtain than previously.


Generally in Spain mortgages are personal to the property not the individual and therefore can be transferred with the sale of a property. This may be a more cost effective option for the purchaser.