- Spanish law applies fully
- Step 1: NIE and bank account
- Step 2: Pre-signing legal review
- Step 3: Payments and milestones
- Step 4: Spec document and plans
- Step 5: Handover and snagging
- Step 6: Notary, deed and Land Registry
- Step 7: Taxes and post-completion
- FAQ
Spanish law applies fully
If you are buying property in Spain, you are buying under Spanish law. The fact that you are British, Dutch, Belgian, French, German, Scandinavian or any other nationality does not alter the legal regime. The LOE, Civil Code, RDLeg 1/2007 and Andalucía's planning law apply just as they do to a Spanish buyer.
What changes is logistics: NIE (tax ID for foreigners), bank account, remittance, notary appointment scheduling, dual language documents, etc.
Step 1: NIE and bank account
The Número de Identificación de Extranjero (NIE) is mandatory for any economic transaction in Spain. Apply at: (a) Spanish consulate in your country, or (b) Spanish National Police office in Spain. Allow 4-8 weeks. The Spanish lawyer can act on your behalf with power of attorney.
Bank account: most Spanish banks open non-resident accounts with NIE + passport + proof of address. Banks targeting foreigners: BBVA, Sabadell, Santander, Bankinter. Note Spanish AML reporting on large incoming remittances.
Step 2: Pre-signing legal review
Before signing the reservation or private purchase contract, have a Spanish lawyer dedicated to new build review the documents. Especially watch for:
- Tolerance clause in delivery date (3-6 months tolerance is standard, more is suspicious).
- Spec change clause ("materials of similar quality" is typically unfair).
- Penalty for withdrawal (disproportionate penalty = unfair clause).
- Cost allocation (municipal capital gains tax must be borne by seller, not buyer).
- Mandatory bank guarantee or insurance for amounts paid (LOE AD 1, Act 20/2015).
- Forum and jurisdiction clauses (should remain Spanish for property in Spain).
Step 3: Payments and milestones
Typical milestones in off-plan: 10% reservation, 30-40% during construction, balance at handover. All amounts paid before delivery must be secured by bank guarantee or insurance. Without that guarantee, walk away.
Each payment generates a receipt that should reference the guaranteed amount and policy/aval number. Keep all receipts; if the developer fails, the guarantee is your safety net.
Step 4: Spec document and plans
The specification document (memoria de calidades) is binding. Read it line by line. Verify brands, models, finishings. If the document says "mid-range tiling" without further specification, ask for upgrade to specific brand. After signing, the developer cannot unilaterally change anything to lower quality.
Floor plans: check measurements, room layout, terraces, storage, parking. The contractual surface vs. the actual surface delivered governs reduction-of-price actions (CC arts. 1469-1471) if there's a discrepancy.
Step 5: Handover and snagging
The handover (entrega) is the legal turning point: LOE periods start from there. Attend with a Spanish surveyor or architect (cost €300-700 for a thorough snagging). List every defect in the snagging list, even minor ones. Sign "with reserves" ("con reservas") on the delivery deed.
Hidden defects appearing later are covered by LOE regardless of the deed. Visible defects not listed at handover may be deemed accepted.
Step 6: Notary, deed and Land Registry
The public deed (escritura pública) is signed before a Spanish notary. Your lawyer attends with power of attorney if you cannot. The notary verifies identity, capacity, payment of taxes (ITP/AJD), absence of encumbrances and the existence of the decennial insurance.
After signing, the deed is registered at the Land Registry (Registro de la Propiedad). Registration takes 1-3 months and confirms ownership erga omnes.
Step 7: Taxes and post-completion
Taxes at acquisition: 10% VAT (IVA) on the price + 1.2% Stamp Duty (AJD) in Andalucía. Yearly: IBI (council tax, 0.4-1.2% of cadastral value), garbage, community fees. If non-resident, additional Modelo 210 (income tax on deemed rental yield).
If you plan to rent the property (long-term or tourist), check community rules and regional regulation (Junta de Andalucía short-stay rental rules).
Frequently asked questions
Do I need to fly to Spain to sign?
Not necessarily. With power of attorney to your Spanish lawyer, the entire process can be done remotely. Useful for buyers in UK, Netherlands, etc. who don't want to fly multiple times.
What if the developer is also foreign?
Many Costa del Sol developers are foreign-owned but operate as Spanish entities (SL or SA). Spanish law and Spanish jurisdiction still apply to the contract.
Can I sign documents in English?
The official deed is in Spanish. Private contracts may be bilingual but if there's a discrepancy the Spanish version usually prevails. Have your Spanish lawyer review the Spanish version regardless of any English translation.
What if I want to change the developer's spec?
Negotiable before signing. After signing, only by mutual written agreement. Unilateral changes by the developer are typically unfair and reclaimable.
