Steps to buy a home in Spain

The steps to buy a home are the sequence of decisions and checks that takes you from initial savings to signing before a notary, taxes and registration. This guide orders them stage by stage for new-build property in Spain and second-hand homes, with the documents you will need at each stage.

What should you check before searching for a home?

Before searching for a home, you should know what you can afford and what own funds you need. This guide sets no recommended percentages (how much the bank finances, how much to save, or what effort to take on depend on each lender, the rules and your personal situation). What is stable is two formulas you can apply with your own figures:

The financing the bank grants need not cover the whole operation, so you provide the difference. When working out the effort, count all your debts (other loans and cards), not just the mortgage; the higher that ratio, the less room you have.

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Documents the bank will ask for the assessment

• Proof of identity for each borrower: a DNI (Spanish nationals) or, for foreigners, a passport and, where applicable, the TIE (foreigner's identity card) evidencing the NIE (the NIE is an identification number, not a document in itself).
• Employment contracts and recent payslips (or quarterly returns and tax filings if you are self-employed).
• Latest income tax return (IRPF) and an up-to-date employment history record (vida laboral).
• Bank statements for the last few months and proof of your savings.
• Details of other debts (loans and cards) to calculate your debt ratio.

What is signed in the reservation and deposit contract?

The reservation and deposit contract set the price, the deadline and, normally, an amount on account. Once you have chosen the property, a reservation is formalised and then a deposit contract (arras) or a private purchase contract with the developer or seller. One important tip: ask that the contract include a clause making the purchase conditional on the mortgage being granted, so you do not lose what you have handed over if the bank ultimately does not finance you.

If you buy off-plan, Spain's Building Regulation Act (LOE) requires the developer to guarantee the repayment of the amounts you pay on account, including applicable taxes, plus statutory interest, from the moment it obtains the building licence. That guarantee must be individual (a bank bond or insurance) for each buyer, and the amounts must be paid into a special account separate from the developer's other funds and used only for the works. Without that guarantee, do not hand over advances.

What checks should be made before signing the deed?

Before signing it is worth verifying that everything is in order. This is the stage where most unpleasant surprises are avoided:

• Land Registry extract (nota simple): evidences ownership, charges and registered limitations (a mortgage still to be cancelled, attachments…); on its own it does not prove the full legal capacity to sell, which is checked separately.
• Seller's identity and capacity: that the person signing is the owner (or holds sufficient power) and, if the home is jointly owned or community property, the consent of all parties.
• Homeowners' association debts: a certificate of being up to date and any special levies (derramas) approved or planned.
• IBI (council property tax) and other local taxes paid up to date.
• Occupants and tenancies: that it is handed over free of occupants and, if let, on what terms (the tenant may have a pre-emption right).
• Planning status: no infringements, proceedings or non-conforming-use situation; for resale homes, the ITE/IEE (building inspection or assessment) where required.
• First occupancy licence or habitability certificate and energy efficiency certificate (mandatory in a sale).
• For new build: new-build and horizontal division deed, the Building Book, the final works certificate and the ten-year insurance covering structural damage.

What pre-contractual documentation does the mortgage require?

The mortgage requires an official valuation and the transparency documentation under Law 5/2019 before signing. In parallel with the purchase you arrange the mortgage. The official valuation of the property, which the client pays and the bank requires, sets the value on which it calculates how much it lends you; you may provide a valid valuation yourself from a firm approved by the Bank of Spain and the bank is obliged to accept it. Then, Spain's Law 5/2019 on real estate credit (Articles 14 and 15, checked on 13 June 2026) protects you with a transparency period: the bank must give you the documentation in its Article 14 at least 10 calendar days before signing, and the notary checks that you have received and understood it. The key documents are:

• FEIN (European Standardised Information Sheet): it is the bank's binding offer and sets out the core terms of the loan (capital, term, rate, payments, fees and APRC/TAE); it stays binding for the agreed period, at least 10 days.
• FiAE (Standardised Warnings Sheet): warnings of the relevant clauses and risks of the loan.
• A copy of the draft contract and information on the split of costs between bank and client.
• For variable or mixed loans, a document with payment scenarios as the index changes.
• The terms of the insurance or other products required as linked.
• Prior notarial act of material transparency, free of charge and before the notary you freely choose; you must attend to grant it at the latest the day before signing the deed, and without it the mortgage cannot be signed.

This is the stage to really compare. Don't look only at the nominal rate: what truly measures the cost of the mortgage is the APR. If you have several offers, it is worth understanding the difference between the nominal rate and the APR and putting them against each other with figures.

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What is signed before a notary?

On the day, the public purchase deed and the mortgage loan deed are signed before a notary. The notary requires proof of the means of payment (bank cheque or transfer) and gives you a plain copy of the deeds. For new build, the developer issues the invoice with VAT itemised.

What steps remain after signing?

After signing, the final formalities remain. On the mortgage, Law 5/2019 assigns the notary, registry, agency and the stamp duty (AJD) on the loan to the bank, while the valuation falls to the client. On the purchase itself, the taxes depend on the type of home: new build may be subject to VAT and AJD at the rate applicable on the date and in the territory; second-hand, to Transfer Tax (ITP) according to the autonomous region. Check the rate applicable in your region and on the date of your operation, because they vary.

Still to complete:

• Self-assessment of the applicable taxes (AJD on new build, ITP on resale): each has its own deadline, which varies by tax and autonomous region (working days, one month, or other periods). The VAT on new build is not self-assessed: it is paid to the developer together with the price.
• Registration of your purchase in the Land Registry: this falls to the buyer, who may handle it directly or through an agency (gestoría); the cost of registering the mortgage charge is borne by the bank (the channel for handling it depends on the operation).
• Setting up or transferring the utilities (electricity, water, gas) and the homeowners' association.

Frequently asked questions

What documents does the buyer prepare before the mortgage assessment?

Before the mortgage assessment, the buyer prepares proof of identity for each borrower, employment contracts and recent payslips or self-employed documents, the latest income tax return, employment history, bank statements, proof of savings and details of other debts. The bank uses those data to calculate the debt ratio.

What protects the buyer when buying off-plan?

If the buyer buys off-plan, Law 38/1999 requires the developer to guarantee repayment of the amounts paid on account, including applicable taxes, plus statutory interest, from the moment it obtains the building licence. The guarantee must be individual and the amounts must be paid into a special account.

What must the bank provide before the mortgage is signed?

Before the mortgage is signed, Law 5/2019 requires the bank to provide the Article 14 documentation at least 10 calendar days in advance. The documents include the FEIN, FiAE, a copy of the draft contract, the split of costs, payment scenarios and the terms of linked insurance.

What taxes and registrations remain after the purchase?

After the purchase, the remaining steps are self-assessment of the applicable taxes, registration of the purchase in the Land Registry and setting up or transferring utilities and the homeowners' association. New build may involve VAT and AJD; resale involves ITP according to the autonomous region.

Summary

The steps to buy a home run from savings and the financing assessment to signing and taxes, passing through the reservation, the registry checks and the mortgage's pre-contractual documentation. The part where most money is at stake is the comparison of mortgages: that is where a good choice saves you thousands of euros over the loan. Always bear in mind that the legal and tax data in this guide are indicative and may vary by autonomous region and date; confirm every figure with official sources and professionals.

Official sources

• Law 5/2019 (LCCI), arts. 14 and 15 — pre-contractual documentation and prior notarial act (BOE).
• Law 38/1999 (LOE), First Additional Provision — guarantee of amounts paid on account for homes under construction (BOE).
• Spanish Civil Code, art. 1455 — purchase costs (BOE).

Notice: this guide and the calculator are for information and educational purposes. They are not financial, tax or legal advice, nor a loan offer. The regulatory and tax data are indicative and may vary by autonomous region and date. Before taking out a mortgage or buying a home, check the official terms and, if needed, an independent adviser.

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