Buying a property in Spain is one of the most significant decisions you will ever make. Every year, thousands of foreign buyers purchase homes on Costa Blanca South and the Costa Cálida — one of the most popular destinations for international buyers in the country. For these buyers, the process adds an extra layer of complexity: an unfamiliar legal system, administrative procedures you have never encountered before, documentation in another language, and — in many cases — the need to manage everything from abroad.
This guide walks you through the entire buying process in Spain from a foreign buyer’s perspective: what steps to take, in what order, what documents you need, and what mistakes to avoid. It is written to be useful whether you are considering buying in Orihuela Costa, Torrevieja, Pilar de la Horadada, or anywhere else along Costa Blanca South and the Costa Cálida.
Why you need an independent lawyer from the start
Before getting into the process itself, there is an important misconception worth clearing up: the notary in Spain does not protect the buyer’s interests. A notary is a public official whose role is to certify that a transaction is legally valid — not to check whether the property has hidden debts, unresolved planning issues, or title problems. That is the job of your independent lawyer.
Similarly, the lawyer recommended by the estate agent may have a conflict of interest. An independent lawyer works exclusively for you.
With over 25 years of experience and more than 2,000 transactions handled in the area, at Parma Consulting we have seen first-hand the problems that arise when buyers proceed without independent legal representation: inherited debts that were never disclosed, properties with open planning enforcement files, arras contracts drafted entirely in favour of the seller, and incorrectly calculated taxes that lead to penalties years down the line.
Step 1: Obtain your NIE
The NIE (Número de Identidad de Extranjero) is the tax identification number required by any foreigner to carry out economic activities in Spain. Without a NIE, it is not possible to sign a title deed, open a Spanish bank account, or pay the taxes associated with the purchase.
How to get it: you can apply at the Spanish consulate in your country of residence, or directly in Spain at a police station with jurisdiction over foreigners. The procedure requires specific documentation, and processing times vary depending on the route chosen.
Important for buyers who cannot travel: by granting a power of attorney to your lawyer, they can apply for your NIE in Spain on your behalf, with no need for you to be present.
Step 2: Open a Spanish bank account
While not a strict legal requirement, having a Spanish bank account is highly practical for managing all payments associated with the purchase: the reservation deposit, the final price, taxes, notary and registry fees, and ongoing costs such as the annual property tax (IBI) and utility bills.
Many Spanish banks allow non-residents to open accounts with basic documentation. Your lawyer can advise on which bank best suits your situation.
Step 3: Choose your property and make an offer
Once you have found a property you want to buy, you negotiate the price and conditions with the seller or estate agent. At this point your lawyer should already be involved, because before committing to any payment it is essential to verify that the property does not have problems that could affect the transaction.
Step 4: Legal due diligence
This is one of the most important steps in the entire process, and the one where an independent lawyer adds the most value. It involves thoroughly verifying the legal, registry, and planning status of the property before anything is signed. Specifically, it covers:
-
- Title: confirming that the seller is the legal owner and that there are no co-owners who have not agreed to the sale.
-
- Debts and encumbrances: outstanding mortgages, embargos, unpaid community fees, or outstanding IBI bills.
-
- Planning status: confirming that the construction has all necessary licences and that there are no open planning enforcement proceedings.
-
- Energy performance certificate: legally required for any property sale in Spain.
-
- Cadastral records: verifying that the registered size and description match reality.
In areas such as Orihuela Costa or the coastal urbanisations around Pilar de la Horadada, where there is a high density of second-hand properties and residential developments, these checks are particularly relevant — irregular situations are more common than many buyers expect.
Looking to buy on Costa Blanca South or the Costa Cálida? At Parma Consulting we carry out a full legal review of any property before you commit to anything. Free consultation →
Step 5: The arras contract
If the due diligence comes back clean, the usual next step is to sign an arras contract — a private agreement between buyer and seller in which the property is reserved in exchange for a deposit, typically between 5% and 10% of the agreed price.
What it means: if the buyer pulls out, the deposit is forfeited. If the seller pulls out, they must return double the deposit. For this reason, it is essential that the contract is carefully drafted and clearly sets out all agreed terms: the price, the completion timeline, what happens if financing falls through, which encumbrances the seller must clear before completion, and so on.
Never sign an arras contract without having your lawyer review it first.
Step 6: Calculate the real total cost
One of the most common mistakes among foreign buyers is failing to account for the additional costs on top of the purchase price. As a general rule, buyers should budget between 10% and 13% of the purchase price for taxes and fees, depending on whether the property is new-build or resale, and on the region where it is located.
The main items are:
-
- ITP (Property Transfer Tax): applies to resale properties. The rate varies by region.
-
- VAT and stamp duty (AJD): for new-build properties, VAT (generally 10%) replaces the ITP, plus a stamp duty charge.
-
- Notary fees: for drafting and certifying the title deed.
-
- Land Registry fees: to register the change of ownership.
-
- Legal fees: varies depending on the firm and the complexity of the transaction.
Your lawyer should calculate these costs with precision before you commit to anything, so there are no surprises at the point of signing.
Step 7: Signing before a notary
Once the due diligence is complete, the arras contract is signed, and financing (if applicable) is confirmed, the next step is signing the public title deed (escritura de compraventa) before a notary.
At this stage, the outstanding balance is paid, the notary certifies the transaction, and the buyer receives the keys. If the buyer cannot be physically present, they can grant a power of attorney to their lawyer to act on their behalf. This is a common arrangement among international buyers who manage the entire process remotely.
Step 8: Land Registry registration and change of ownership
Signing before the notary is not the end of the process. After completion, there are several steps that must be completed:
-
- Pay the applicable taxes within the deadlines set by the tax authorities.
-
- Register the title deed at the Land Registry so that the change of ownership is officially recorded.
-
- Transfer utility contracts (water, electricity, gas) and local tax registrations (IBI, waste collection) to the new owner’s name.
Your lawyer should handle all of these post-completion steps to ensure the transaction is fully closed and properly regularised.
Buying from abroad: the power of attorney option
One of the most common questions we receive is whether it is possible to complete a property purchase in Spain without travelling to the country. The answer is yes — provided the buyer grants a power of attorney to their lawyer.
A power of attorney is a legal document that authorises your lawyer to act on your behalf for all necessary procedures: applying for your NIE, signing the arras contract, carrying out the due diligence, signing the title deed before the notary, and handling all post-completion formalities.
Over the years we have worked with buyers from the UK, Ireland, Belgium, Germany, France, Poland, the United States, and many other countries, who have completed their purchase on Costa Blanca South and the Costa Cálida without setting foot in Spain at any point during the process.
Common mistakes to avoid
Over 25 years and more than 2,000 transactions, the most frequent problems we have seen among foreign buyers are:
-
- Using the estate agent’s recommended lawyer without checking that they operate independently.
-
- Signing the arras before completing due diligence, which can mean losing your deposit if a legal problem with the property comes to light afterwards.
-
- Underestimating additional costs and not having enough liquidity to cover taxes at completion.
-
- Not arranging the NIE early enough, which can delay the entire process by weeks or even months.
-
- Not registering the property at the Land Registry after completion, leaving the ownership in an irregular situation.
Frequently asked questions
Is it legally required to have a lawyer when buying property in Spain? No, it is not a legal requirement. However, given the complexity of the process and the financial consequences of mistakes, the cost of a lawyer is almost always money well spent.
How long does the process take? A straightforward transaction typically takes between six and ten weeks from agreeing the price to signing before the notary. If obtaining a NIE or securing financing is involved, the timeline may be longer.
Can I buy without travelling to Spain? Yes, by granting a power of attorney to your lawyer. This is a standard arrangement for international buyers.
What taxes do I pay when buying a resale property? The main tax is the ITP (Property Transfer Tax), the rate of which varies by region. Notary and Land Registry fees are added on top. Your lawyer can calculate the exact total cost before you commit.
What if the property has debts from the previous owner? Certain debts — such as unpaid community fees — can transfer to the new owner if they are not cleared before completion. The pre-purchase due diligence is designed precisely to identify and resolve these situations before they become your problem.
Thinking of buying a property on Costa Blanca South or the Costa Cálida?
At Parma Consulting we have been helping national and international buyers complete their transactions safely and without complications for over 25 years. We manage the entire property purchase legal process, from the initial review through to post-completion formalities, and we can represent you under power of attorney if you are unable to travel to Spain.
Free initial consultation. Tell us about your situation and we will explain the next steps.