Buying property in Spain
Buying property in Spain from the UK involves a different legal process, additional taxes and costs, and a currency transfer that can shift significantly between offer and completion. Our buying in Spain guide covers what you may need to know at each stage, so you are better placed to protect your budget before you start.
The process of buying property in Spain
Find a property & make an offer
Once your offer is accepted, it’s worth starting your NIE application straight away, as it’s needed to complete the purchase and can take up to six weeks.
Sign a reservation contract
The estate agent will likely ask you to sign a contrato de reserva and pay a reservation deposit, which takes the property off the market while checks are carried out.
Property and legal checks
Your lawyer confirms the property is legally the seller’s to sell, checks it has the right planning permissions, and makes sure there are no outstanding debts or charges.
Sign a deposit contract (contrato de arras)
Once checks are complete, you and the seller sign a private purchase contract and pay your deposit. Both parties are now committed to the sale.
Choose a notary
A notary (notario) is mandatory for any property transaction in Spain. Unlike your lawyer, they don’t act for either side. Their job is to oversee the paperwork, confirm all taxes are paid, and register the property with the Spanish Land Registry.
Complete your purchase
Once all checks are done, you sign the sale contract and pay the balance before collecting your keys and moving in.
Costs and taxes when buying property in Spain
In addition to the property price, buyers should budget for several additional costs when purchasing property in Spain. These vary depending on the region, whether the property is new or existing, and whether the purchase is financed with a mortgage. Read more in our tax guide.
IVA on new-build properties
The Spanish equivalent of VAT, IVA is charged instead of transfer tax on any brand-new property.
Property transfer tax (ITP)
Paid on existing properties, this tax is set by each region in its own budget every year, so it’s worth checking with your estate agent.
Notario fees & stamp duty (AJD)
Notario fees are fixed by law on a sliding scale relative to the sale price. Stamp duty is added on top and also varies by region.
How exchange rates impact your budget
If buying property in Spain from the UK, you’ll need to convert pounds to euros. Even small GBP to EUR fluctuations can increase the amount needed if the pound weakens before completion. A 2% movement on a €300,000 property could mean paying around £5,000 more or less, depending on whether the pound weakens or strengthens against the euro.†
Protecting your budget
When you’re making a property purchase abroad, exchange rate changes can quickly affect your budget. Lumon supports buyers with large international payments and helps them plan their transfers around the purchase timeline.
†The information provided in this case study/scenario is hypothetical and is intended for illustrative purposes only. The exchange rates referenced in this case study/scenario are interbank rates and should not be used as an indication of past, current or future performance or constitutes a recommendation of any kind.
Working with Lumon
Our team of currency specialists has the local market knowledge to help you navigate the process of buying a property in Spain. With our international real estate expertise, we’re here to help make the process hassle-free.
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Mortgages for buying property in Spain
Getting a mortgage in Spain is possible for UK citizens, although lending criteria differ from the UK in some important ways. With so much to consider when purchasing a property overseas, it’s worth engaging trusted professionals early, like a lawyer, an independent financial adviser (IFA), and a currency specialist.
Choosing a lawyer
The right lawyer plays a vital role in making sure your purchase is legally sound and runs smoothly from start to finish. Look for someone with an established reputation and local knowledge, good reviews, a fast response time, and experience working with UK buyers.
Choosing an independent financial adviser
An IFA can help with the financial elements of your purchase, such as budgeting, managing your finances, and reducing costs, as well as pensions and taxation. Unless you’re a cash buyer, you’ll likely need a mortgage adviser too, who can also help with life insurance.
Buying a property in Spain?
Can foreigners buy property in Spain?
Yes, foreigners including UK citizens can buy property in Spain. There are no restrictions on overseas ownership and you do not need to be a Spanish resident to buy, you’ll just need an NIE (Foreigner Identification Number) to complete the purchase.
However, buying a property does not automatically give you the right to stay long term. UK citizens can currently stay in Spain for up to 90 days in any 180-day period without a visa. Spain’s Golden Visa scheme is no longer available to new applicants (though applications submitted before the April 2025 cut-off are still being considered under the previous rules), so if you’re planning to spend more time there, you’ll need to look at your visa and residency options before you commit to a purchase.
The Spanish property market
Spain remains one of the most consistently popular property markets for UK buyers, thanks in large part to its climate and lifestyle. Malaga on the Costa del Sol enjoys around 3,000 hours of sunshine a year, compared with a comparatively dreary 1,265 hours in Manchester. Spain also ranks fourth in the world for work-life balance on the OECD Better Life Index.
Prices and pace vary significantly by region, from the bustling resort towns of the Costa del Sol to quieter, more affordable stretches like the Costa de la Luz and Costa Daurada, so where you buy will have as much impact on your budget as when you buy.
Where to buy property in Spain
If you are considering where to buy a property in Spain,you’ll find a wide range of options, from lively resort towns to quiet inland villages and island retreats. Spain remains a popular choice for UK citizens seeking a holiday home, retirement property or long-term investment.
Costa Blanca
A long-time favourite with expats, the White Coast pairs the high-rises of Benidorm with the historic charm of Jávea and quiet inland villages, plus sunshine almost all year round.
Costa del Sol
A classic for a reason: vibrant towns, golf courses and beaches, with strong expat communities and easy access to Malaga and beyond.
Costa de la Luz
A more low-key alternative to the Costa del Sol, with dramatic landscapes, traditional towns, and property at a lower price point.
Canary Islands
Mild year-round weather, volcanic beauty, and a unique island lifestyle. The Canary Islands are a favourite for winter sun and long-term living.
Costa Brava
Rugged coastlines, charming seaside towns and easy access to Barcelona. Costa Brava is a scenic spot with a mix of nature, culture and convenience.
Balearic Islands
Stylish island living with stunning beaches, vibrant culture, and a slower pace. Perfect for both relaxing escapes and year-round sunshine.
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Pitfalls when buying property in Spain
Buying property abroad can present challenges, particularly for buyers unfamiliar with the local legal system. Being aware of these common pitfalls can help reduce risk and make the process smoother.
- Underestimating total costs
- Exchange rate fluctuations
- Incomplete property checks
- Relying solely on seller recommendations
Frequently asked questions
Is buying property in Spain a good investment?
It can be, especially in high-demand areas like the Costa del Sol or the Balearic Islands, which attract strong long-term value growth and rental income. Buyers should still research the local market, tax rules and currency factors before committing.
Are there any restrictions for UK citizens buying property in Spain?
No, UK citizens can buy property in Spain without needing to be residents. You’ll just need an NIE to complete the purchase, and if you plan to stay long-term, you’ll need to explore visa options post-Brexit.
Do you pay UK stamp duty on Spanish property?
No, UK stamp duty applies only to property purchased in the United Kingdom. When buying in Spain, buyers instead pay Spanish transfer tax, legal fees and notario charges, which is typically 10–15% on top of the purchase price.
How can I legally reduce UK tax on my Spanish property?
The UK and Spain have a double taxation agreement designed to prevent the same income being taxed twice, and a qualified tax adviser can help you understand how it applies to rental income or capital gains.‡
‡The information provided is for general information purposes and does not constitute legal, tax or other professional advice from Lumon, and it is not intended as a substitute for obtaining advice. it is recommended you seek professional advice from a financial advisor or any other professional.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Lumon or its subsidiaries, and it is not intended as a substitute for obtaining advice from the relevant professional services. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
Your property buying guide
Our property buying guide is packed with information and resources to support you on your property journey, including:
- Important considerations when buying a property in Spain
- Information on navigating local taxes, visas and other regulations
- A handy checklist for ensuring you’re on track
