NIE, reservation, contract, stage payments, taxes and completion: a clear guide to buying a new-build home in Spain as a foreigner.
1. Choose the home and get your NIE
It all starts with defining area, property type and budget. With a shortlist of developments, you can visit them in person or by video call.
To buy you need an NIE, the foreigner identification number, and a Spanish bank account. Both can be arranged through a power of attorney, without travelling.
2. Reservation
Once you choose the home, you sign a reservation form and pay a deposit, usually between €3,000 and €10,000. The property is taken off the market while your lawyer checks the paperwork: building licence, land registry extract, specification and floor plans.
3. Purchase contract and stage payments
In the following weeks you sign the private purchase contract and pay a first share, typically 20% to 40% of the price, in one or several instalments during construction.
By law, the developer must guarantee these amounts with a bank guarantee or individual insurance. If the building were not completed, you would get your money back. Always ask for the guarantee certificate for each payment.
4. Taxes and costs
New builds carry 10% VAT on the price, plus stamp duty (AJD) of 1.2% to 1.5% depending on the region. Add notary, land registry and legal fees. As a guide, budget an extra 12% to 14% on top of the price.
5. Completion, deeds and keys
When construction ends, the town hall issues the first occupancy licence. You then sign the title deed before a notary, pay the balance (with a mortgage if needed) and receive the keys.
Utilities are then connected and the property is entered in the land registry. The home carries legal warranties of one, three and ten years depending on the type of defect.
How we support you
At Homiia we guide you in your language throughout the process, with direct contact with the developer and no commission for you. If you wish, we put you in touch with independent lawyers and banks used to working with foreign buyers.
Sources and references
For information only: not legal or tax advice, or a guarantee of returns. Confirm the terms of your transaction with an independent professional.
