The Complete Guide to Buying Property in Spain 2026
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
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