How to buy a property in Spain if you are American

Buying property in Spain as an American can be an exciting process, but it does require understanding local rules and procedures. Here’s a straightforward guide to help you navigate it:

1. Obtain a Foreign Identity Number (NIE)

Before you can buy property, you’ll need to get a Número de Identificación de Extranjero (NIE), which is a foreigner’s identification number. This number is crucial for any official transaction in Spain, from opening a bank account to signing the purchase contract. You can apply for the NIE at a Spanish consulate in the U.S. or in Spain itself.

2. Open a Spanish Bank Account

You’ll also need a local bank account to handle payments and any future expenses related to your property. This includes utility bills, taxes, and community fees if you buy in a shared complex.

3. Hire a Local Lawyer

It’s highly recommended to hire a local lawyer (referred to as an abogado) who specializes in real estate. They will help you navigate legalities, ensure the property has no debts or legal issues, and assist with contracts.

4. Find a Property

Once your legal and financial arrangements are in order, the fun part begins: property hunting! Whether you’re looking for a holiday home, an investment property, or a place to retire, it’s essential to research the area. Popular regions for foreigners include the Costa del Sol, Costa Blanca, and cities like Barcelona and Madrid. Keep in mind that coastal areas can be pricier.

5. Make an Offer and Sign a Deposit Contract (Contrato de Arras)

Once you find the right property, you’ll need to make a formal offer. If it’s accepted, you’ll typically sign a preliminary contract called a Contrato de Arras, where you pay a deposit, usually 10% of the purchase price. This agreement guarantees both parties’ commitment to the sale.

6. Arrange Financing

If you need a mortgage, many Spanish banks offer financing options for non-residents. You may be required to provide proof of income, tax returns, and other documents from the U.S. Be aware that Spanish banks may lend up to 70% of the property’s value for non-residents.

7. Sign the Final Purchase Contract (Escritura)

The final step is signing the Escritura Pública (public deed) in front of a notary, where the remaining balance is paid, and ownership is transferred. The notary will also ensure the property is registered in your name.

8. Pay Taxes and Fees

Expect to pay additional costs, including:

• Property transfer tax (around 6-10% depending on the region)
• Notary fees
• Land registry fees
• Lawyer’s fees (usually around 1% of the purchase price)

9. Register the Property

Once the sale is complete, you or your lawyer will need to register the property at the local Land Registry (Registro de la Propiedad).

The process of buying property in Spain as an American can seem complicated, but with the right legal support and planning, it can be smooth and straightforward. Make sure to do thorough research, especially when choosing the location, and always seek professional advice to ensure everything is in order.

Enjoy the process—Spain has a lot to offer! And if you need help navigating the process, feel free to contact us. We’re here to guide you every step of the way!