The Complete Guide to Buying Property in Spain
Everything British buyers need to know — without paying a penny in agent commission
Everything British buyers need to know about purchasing property in Spain — without paying estate agent commission.
Buying property in Spain can be one of the most exciting decisions you'll ever make. The Costa Blanca and Costa Cálida offer outstanding value, a warm climate, and a relaxed lifestyle that has attracted thousands of British buyers.
However, the buying process differs from the UK. Understanding each stage before you begin can save you time, money, and unnecessary stress.
At DirecSpain, buyers deal directly with sellers and developers, meaning buyers pay no estate agent commission. This guide walks you through the entire journey—from setting your budget to collecting the keys to your new home.
Step 1: Define Your Budget
Before viewing properties, establish your total budget. In Spain, the purchase price is only part of the overall cost.
Additional purchase costs
- Transfer Tax (ITP) on resale properties: 10% in the Valencian Community and the Region of Murcia
- VAT (IVA) on new-build properties: 10%, plus 1.5% Stamp Duty (AJD)
- Notary fees: approximately €800–€1,500
- Land Registry fees: approximately €400–€700
- Legal fees: typically around 1% of the purchase price plus VAT
- Mortgage arrangement fees (where applicable): approximately 0.5–1.5% of the loan amount
As a guide, budget an additional 12–13% for resale properties and around 13–14% for new-build properties.
Step 2: Arrange Your Finances
Decide early whether you will purchase with cash or require a mortgage.
Buying with cash
A cash purchase is generally quicker and simpler. You'll still need a Spanish bank account and an NIE number before completing the purchase.
Spanish mortgage
Non-resident buyers can typically borrow between 60% and 70% of the lower of the property's purchase price or the bank's valuation, subject to affordability checks.
Fixed-rate mortgages remain the most popular option and are available from Spain's major banks.
Typical documentation includes:
- Proof of income
- Your last two years of tax returns
- Recent bank statements
- Details of existing assets and liabilities
Mortgage approval normally takes between four and eight weeks. Securing an agreement in principle before making an offer can strengthen your negotiating position.
Currency exchange
Exchange rate movements can significantly affect your budget. Many buyers use specialist foreign exchange providers rather than high street banks, as they often offer better rates and forward contracts to lock in an exchange rate.
Step 3: Obtain Your NIE Number
An NIE (Número de Identificación de Extranjero) is your Spanish tax identification number. It is required to purchase property, pay taxes, and complete many financial transactions in Spain.
How to apply
- In Spain: Apply at an Oficina de Extranjeros or National Police station with your passport, completed EX-15 form and payment receipt.
- In the UK: Apply through your nearest Spanish Consulate.
- Through a solicitor: Many buyers choose to have their lawyer obtain an NIE using a power of attorney.
Processing times vary depending on demand. Apply as early as possible to avoid delays later in the buying process.
Step 4: Find Your Property
DirecSpain lists properties across the Costa Blanca and Costa Cálida directly from owners and developers, allowing buyers to purchase without paying estate agent commission.
Popular areas for British buyers
- Torrevieja: A vibrant coastal city with excellent amenities, year-round activity and a large international community.
- Orihuela Costa: Famous for its beaches, golf courses, shopping centres and strong rental market.
- Guardamar del Segura: Beautiful sandy beaches, pine forests and a relaxed atmosphere.
- Mar Menor: Excellent value with growing infrastructure and Europe's largest saltwater lagoon.
Property viewing tips
- Visit the property in person whenever possible.
- View at different times of the day.
- Check the property's orientation for year-round sunlight.
- Ask about community fees, local taxes and annual running costs.
- Ensure your solicitor verifies ownership, licences and any outstanding debts.
- If you intend to rent the property, check whether tourist licences are available in that municipality.
