Essential Guide for UK Buyers: Purchasing Property in Spain

Buying property in Spain remains an attractive prospect for UK residents seeking sunshine, lifestyle, and investment opportunities on the Costa del Sol. Whether you’re looking for a holiday home in Marbella, a retirement villa in Elviria, or an investment property in Nueva Andalucía, understanding the Spanish property market and legal requirements is essential for a smooth transaction.

At Promas Estates, we’ve helped countless British buyers navigate this process, and we’re here to share the key considerations that will help you make an informed decision.

Engaging the Right Professionals

The first step when making such an important move is engaging the right professionals from the start. Unlike the UK property market, where solicitors handle most of the conveyancing, Spanish property transactions require a multilayered approach.

Although many foreign buyers find it helpful to appoint a gestor or fiscal representative to manage tax filings and administrative processes, this isn’t a universal requirement. The key mandatory professional is an independent Spanish lawyer who can perform legal due diligence. The use of a gestor is optional and depends on your preference as a buyer and the complexity of your ongoing tax obligations.

Get Clear on the Total Costs

In Spain, buyers typically pay between 10 and 15 percent of the property value in additional costs and taxes. For resale properties, you’ll pay Transfer Tax (Impuesto de Transmisiones Patrimoniales). While transfer tax on resale properties sits at 7% in Andalusia, it’s important to note that rates vary across Spain and can reach up to 11% in some communities. Buyers should confirm the exact rate applicable to the region where they are purchasing, as using a fixed national estimate may lead to budgeting inaccuracies.

On top of these, budget for legal fees (typically 1 to 1.5 percent), notary fees, Land Registry fees, and any mortgage arrangement costs if you’re financing the purchase. Many estate agents on the Costa del Sol work with trusted financial advisors who can help you understand currency exchange considerations too, as fluctuations between sterling and euros can significantly impact your budget.

Obtain Your NIE and Bank Account

The NIE (Número de Identidad de Extranjero) is an absolute necessity before you can purchase property in Spain. This foreigner identification number is required for all financial transactions, including buying property, opening a bank account, and setting up utilities. You can apply for your NIE at the Spanish Consulate in the UK or at a police station in Spain, though many buyers find it more efficient to grant power of attorney to their Spanish lawyer to obtain it on their behalf.

This process can take several weeks, so it’s wise to start this early in your property search. You’ll also need to open a Spanish bank account, which most banks will require you to do in person, bringing your NIE, passport, and proof of address.

The Spanish Property Buying Process

The buying process itself differs markedly from the UK system. Once you’ve found your ideal property, you’ll typically pay a reservation deposit (around 3,000 to 6,000 euros) to take it off the market while the contracts are prepared. This is followed by the private purchase contract (contrato privado de compraventa) where you’ll pay a deposit of usually 10 percent of the purchase price. This stage binds both parties legally, and there are significant penalties if you decided to pull out. Your lawyer will thoroughly review this contract for you before you sign.

The final stage is the completion (firma de escritura), which takes place at the notary’s office where the final balance is paid, the title deed is signed, and ownership transfers. The notary is a public official who ensures the transaction is legal, but remember, they don’t represent your interests, which is why having your own lawyer present is so important.

Ongoing Ownership Responsibilities

Post-purchase considerations require careful planning to avoid surprises. As a property owner in Spain, you’ll be liable for annual property tax (IBI), which is the equivalent to council tax and varies by municipality. If you’re non-resident, you’ll also need to file an annual non-resident income tax return (Forma 210), even if you don’t rent out the property.

Prospective UK buyers should be aware that purchasing property in Spain no longer grants any automatic residency rights following Brexit. Additionally, Spain has moved to eliminate the availability of Golden Visas, so buyers intending to spend extended periods in Spain should seek advice on alternative residency routes, such as the Non-Lucrative Visa or Digital Nomad Visa, none of which are linked to property ownership.

Rental Income and Tax Implications

For anyone considering rental income, Spain’s tax implications require special attention. Rental income is taxable in Spain. For UK citizens, rental income is taxed at 24%. However, following significant court rulings in 2025, UK residents are now entitled to deduct legitimate property-related expenses, such as maintenance, community fees, and mortgage interest, from their taxable base. This ensures you are taxed on net profit rather than gross turnover, bringing the tax treatment of UK owners closer to that of EU residents.

Choosing the Right Location

Finally, but arguably most importantly, take your time with the viewing process. The Costa del Sol offers incredible diversity, from beachfront apartments in Marbesa to hillside villas in Benahavís, and each area has its own character, amenities, and investment potential.

Visit at different times of year, if possible, research local infrastructure developments, and consider how accessible the property is if you’re planning on splitting your time regularly with the UK. Málaga airport’s excellent connections to British cities make the Costa del Sol particularly convenient for UK buyers but, naturally, if you choose a more remote location in Spain, you’ll need to factor in travel and how easy it is to get to and from the property.

Working with experienced professionals who understand both the Spanish market and the needs of British buyers makes all the difference. At Promas Estates, we provide comprehensive support throughout your property journey, from initial viewings to completion and beyond. The dream of owning a slice of Spanish sunshine is very much within reach when you’re properly informed and professionally supported. Get in touch to book a viewing or browse our property listings online.

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