Purchasing a luxury property in Spain is an exciting journey. You will explore gorgeous locations and see some of the most in-demand homes on the market. The process can however be overwhelming for those unfamiliar with the Spanish market, and there are several legal considerations to ensure a smooth transaction.
So, what is the buying process for luxury properties in Spain, and how can you make sure your purchase is a seamless and enjoyable experience?
Why buy luxury property in Spain?
Spain is renowned for its blend of modern living and desirable tradition, making it one of the most attractive destinations for high-net-worth individuals.
Whether you are drawn to the sun-kissed Costa del Sol, the Balearic Islands' serene beauty, or Madrid's cosmopolitan charm, Spain offers diverse luxury property options.
As well as having many stunning locations to choose from, Spain’s Golden Visa programme (due to end this year), favourable tax benefits, and resilient real estate market add significant value for international buyers.
The buying process for luxury properties in Spain
Let’s take a closer look at the process.
Step 1: Research and location selection
The first step for your purchasing journey is to find the ideal location. Spain is made up of a variety of regions, each with unique advantages that may suit different lifestyles.
For example, the Costa del Sol is full of glamorous villas, exclusive marinas, and world-class golf courses. The Balearic Islands, on the other hand, boast modern homes with breathtaking Mediterranean views and tranquil surroundings.
For fans of city living, Madrid and Barcelona provide an exciting combination of vibrant culture and upscale living, with exclusive neighbourhoods attracting buyers worldwide.
Choosing the right location will depend on your lifestyle preferences, investment goals, and accessibility needs.
Step 2: Engage a real estate agent
Working with an expert who understands the luxury real estate agent can be crucial for securing your dream property.
These professionals have deep local knowledge, access to off-market listings, and experience navigating high-end transactions.
They can streamline the search, negotiate on your behalf, and ensure you’re aware of and fully understand every step of the process.
Step 3: Conduct legal due diligence
Particularly if you don’t speak good Spanish, hiring a bilingual lawyer with expertise in Spanish property law may be an essential step to safeguarding your investment.
They will verify the property’s legal status and review the Nota Simple (land registry document) to confirm ownership details and zoning regulations.
This step ensures your purchase is legally secure and aligns with your expectations. If you’re planning to renovate or amend your property this is an important step.
Step 4: Secure financing
If you plan to finance your purchase with a Spanish mortgage, finalising your mortgage at this stage is essential.
Spanish banks often lend 60–70% of the property’s value to non-residents, meaning you’ll need a sizable deposit. You will also need 10-15% of the property’s value for additional buyer fees and taxes.
To secure a mortgage in Spain you’ll need to provide documents such as proof of income, bank statements, and set up a Spanish bank account for payments. Pre-arranging financing demonstrates your commitment to sellers and simplifies the buying process.
Step 5: Completion at the notary
The final stage involves signing the title deed (Escritura de Compraventa) at the notary’s office. Both buyer and seller, or their legal representatives, must attend.
At this point, you’ll pay the remaining balance of the property’s price and cover any taxes or fees. Once signed, ownership is officially transferred, and the property is yours.
Common pitfalls to avoid
Skipping legal due diligence is one of the most common mistakes that buyers make when investing in luxury property in Spain. Failing to verify the property’s legal status can lead to unexpected liabilities.
Buyers should also factor in all taxes and fees to avoid unpleasant surprises. Buying fees are an important consideration but also consider long-term maintenance fees and taxes that will be applicable to the property.
Lastly, considering resale potential is very important. Even in luxury markets, location, accessibility, and amenities significantly affect long-term value so it’s important to understand the area to clearly see the potential long-term value of your property.
Understanding legal requirements
It’s important that any non-resident buyer has at least a basic understanding of their legal obligations when buying luxury property in Spain.
Non-residents will need a Foreign Identity Number (NIE), which is required for any property purchase. This number is issued by Spanish authorities and is relatively simple to obtain.
Buyers will also need to ensure that the property is free of debts or encumbrances. Hiring a lawyer experienced in Spanish property law is essential for conducting these checks and reviewing the contract for the purchase.
When purchasing your property it’s important to also familiarise yourself with Spain’s tax obligations. Buyers are typically responsible for property transfer tax (ITP) or VAT, depending on whether the property is new or resale.
A broker or lawyer will be able to advise on this.
Managing your luxury property
Once your property is purchased, maintaining its value is key.
Luxury properties often require specialised care, such as regular landscaping for villas or upkeep of premium materials like marble and hardwoods.
Many owners choose to hire property management companies to handle these tasks, especially if they don’t live in Spain full-time.
For holiday homes or second homes, there are also plenty of rental opportunities in Spain’s tourist hotspots. Regions like the Costa del Sol and Balearic Islands command high rental income during peak seasons – just be sure to familiarise yourself with local rental laws and licensing requirements if you plan to explore this option.
Find luxury property for sale in Spain
Buying luxury property in Spain is extremely rewarding and can lead to ownership in some of the world’s most sought after locations. With breathtaking homes and a fantastic lifestyle on offer, it’s no real surprise that the luxury Spanish market is booming. Whether you envision a coastal retreat, a countryside villa, or a penthouse in a bustling city, Spain has the perfect luxury property waiting for you.