BUYING GUIDE
Buying Guide, Buy a House on the Costa Blanca
From the NIE number to the notary, from purchase costs to annual taxes: in this guide I explain the whole buying process clearly. Practical, well-organised and written for buyers who want to know exactly where they stand.
Why a guide?
Buying a home in Spain works differently from buying at home. You will encounter different laws, taxes, procedures and terms that are not always immediately clear. Good preparation prevents surprises and helps you make decisions with confidence. This guide is built on 12 years of experience in the Spanish property market and more than 400 completed purchases. It sets out the entire buying process clearly: from applying for a NIE number and opening a Spanish bank account to taxes, completion at the notary and points of attention such as annual wealth-tax reporting at home.
Practical, well-organised and written in plain language, so that you know exactly what to expect when you buy a property in Spain.
THE BUYING PROCESS
8 steps, from first click to key
No-obligation introduction
Every search starts with a proper conversation. I discuss your requirements, your budget, your preferred areas and your plans for the future. That gives me a clear picture of what you are looking for so I can think along with you purposefully. Whether you dream of a second home by the sea, want to move to Spain permanently or are looking for a worthwhile investment, I take the time to go through your situation and your options. The conversation is always without obligation and can take place by phone, by video call or in person on the Costa Blanca.
Location choice & regional orientation
The Costa Blanca and Costa Cálida offer an enormous variety of places to live. From lively coastal towns and golf resorts to authentic Spanish villages and quiet residential areas among the orange groves. Together we look at which area best matches your wishes, your lifestyle and your budget. Because finding the right home often begins with finding the right surroundings.
Personal property selection
Based on your requirements I put together a carefully chosen selection of properties that genuinely match your search profile. That saves you time and means you only look at homes that suit your budget, your lifestyle and your plans. Alongside publicly listed properties I also have access to homes that are not yet widely advertised on portals or social media.
On-site viewings
During the viewings I accompany you personally to the selected properties. On average we see three to five homes a day, so there is enough time not only to look at the property but also to get a proper feel for the surroundings. I take care of the planning, coordinate appointments with the selling parties and stay with you throughout the viewing days. I look on critically and give honest advice about both the property and the location.
Making an offer & negotiation
Have you found your ideal property? Then I guide you in making a suitable offer and support you through the negotiations. Thanks to my knowledge of the local market, the different areas and the Spanish buying process, I can advise on a realistic value, the negotiating strategy and the terms that matter. I look not only at the price, but also at matters such as the completion date, the contents, existing reservations and any points of concern around the property.
Legal due diligence
Before you commit to the purchase, I have the property checked legally by an independent lawyer. That covers ownership, any debts or charges, permits, registry details and other legal points of attention. That way you know everything is in order before you sign, and you avoid unpleasant surprises afterwards. In Spain you do not only buy a property, you also buy the legal situation that comes with it.
NIE number & financing
To keep the buying process smooth and safe, I work with a power of attorney for an independent lawyer or tax representative. That allows important legal, administrative and financial matters to be handled on your behalf, without you having to be present in person for every step. The power of attorney also covers practical matters such as applying for a NIE number, registering the property, opening a Spanish bank account and transferring water, electricity and other utilities.
Notarial transfer
Once all the checks are complete and the financing is in place, completion takes place. In most cases this is done through the power of attorney, so you do not have to be present at the notary in person. Just before completion I inspect the property together with the seller or the developer. After signing, the lawyer receives the keys and all the administrative matters are dealt with. When you arrive in Spain, your home is ready and the key is waiting for you. And of course there is a bottle of cava, to toast your new chapter together.
THE PURCHASE PROCESS STEP BY STEP
The purchase process step by step
Buying a property in Spain works differently from the Netherlands. These are the most important steps.
Reservation contract
Have you found your property and agreed a price? Then a reservation contract is signed first. This takes the property off the market and fixes the agreed purchase price. For a resale property the reservation is usually around €5,000, which is later offset against the final purchase. For new build the sale price is fixed from the reservation onwards and the reservation is often around €10,000. The purchase contract follows, after which staged payments are made. All payments are set out in the purchase agreement and, for new build, are legally protected by a bank guarantee or insurance bond.
Independent lawyer & power of attorney
Next, you engage an independent lawyer. They check the title deed, any debts, permits, the land registry and all contracts. At the same time a notarial power of attorney is drawn up. This allows the lawyer or tax representative to handle the purchase process on your behalf, including applying for the NIE number, signing documents, making payments and, where necessary, signing the mortgage deed.
Contrato de Arras
After the legal checks, the Contrato de Arras (preliminary purchase contract) is signed. This records all agreements such as the purchase price, transfer date and any resolutory conditions. For existing properties, approximately 10% of the purchase price is paid at this point, with the earlier reservation fee offset.
Notarial transfer
On the agreed date, the transfer takes place at the Spanish notary. In most cases this happens via the power of attorney, so you do not need to travel to Spain again. Just before the transfer I inspect the property together with the seller or developer. After signing, the lawyer receives the keys and all administrative matters are handled. When you arrive in Spain, your property is ready and the key is waiting for you. And of course a bottle of cava is never missing to toast your new chapter together.
“The purchase does not end at the notary. Only when you open the door of your new home does the process feel truly complete for us.”
ADDITIONAL COSTS
What are the purchase costs in Spain?
In addition to the purchase price you pay 10 to 14 percent in additional costs in Spain, depending on the region and on whether you buy new build or resale. Below is a full overview.
For new build you pay 10% VAT (IVA) instead of transfer tax, plus around 1.5% stamp duty (AJD). For resale, Alicante (Costa Blanca) applies 9% up to €1,000,000 and 11% above that, while the Murcia region (Costa Cálida) applies a general rate of 7.75%. For non-residents, Spanish banks generally lend up to around 70% of the valuation. Work out your own costs with the free calculator.
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NIE NUMBER
The NIE number: your Spanish tax ID
A NIE number (Número de Identificación de Extranjero) is compulsory for every foreigner who buys property in Spain, opens a bank account or pays tax. Without a NIE number the transfer at the notary cannot take place. Applying for a NIE from abroad is no longer possible; it has to be arranged in Spain itself.
We arrange the NIE number for you, at the Spanish embassy in the Netherlands or on-site at the local police in Spain. On average the application takes 2 to 4 weeks.
ESTATE AGENT FEES
Do I pay the estate agent?
Many Dutch buyers assume they have to pay the estate agent. In Spain it usually works differently. The commission is generally paid by the seller or the project developer. As a buyer, you can therefore benefit from professional guidance without extra agency fees.
That is exactly why it is wise to look not only at the property listings, but above all at the way an agent works. Choose someone you feel comfortable with, who knows the region and guides you throughout the entire buying process. In most cases good guidance costs you nothing extra, but it can save you a great deal of time, worry and costly mistakes.
BOX 3 AND A PROPERTY IN SPAIN
Box 3 and a property in Spain
A property in Spain forms part of your assets and must therefore be declared in the Dutch income tax return (box 3). However, this does not mean that you pay tax again in the Netherlands on the value of your Spanish property. The Netherlands and Spain have concluded a tax treaty to prevent double taxation. As a result, Spanish real estate is exempt from box 3 taxation in the Netherlands.
The property does count towards the calculation of your total assets. On that basis, the tax authorities calculate how much box 3 tax you would theoretically owe. An exemption is then applied for the portion of your assets consisting of the Spanish property.
A simple example
Suppose your total box 3 assets amount to €500,000, of which €250,000 consists of a property in Spain. The Spanish property counts towards the calculation of your total assets, but you then receive an exemption under the tax treaty. As a result, you pay no box 3 tax in the Netherlands on the Spanish property itself, only on the portion of your assets that is taxable in the Netherlands.
Good to know: the tax rules around box 3 are constantly evolving. For your personal situation, it is advisable to consult a tax advisor or fiscal specialist.
LEGAL TIPS
6 important tips for buyers
Always engage an independent lawyer
When buying a property in Spain an independent lawyer is indispensable. They act solely in your interest and check the ownership situation, any debts or charges, permits, contracts and other legal aspects of the property. That way you know the property is legally sound and you avoid unpleasant surprises after the purchase. Legal support usually costs around 1% of the purchase price.
Open a Spanish bank account
When buying a resale property, a Spanish bank account is in practice almost always necessary. It is used for the purchase, the taxes and often the running costs as well. For new-build properties a Spanish account is not compulsory; payments can also be made from an account abroad. We are happy to advise you on the options.
Understand the contrato de arras
Before completion at the notary, a Contrato de Arras (preliminary purchase agreement) is usually signed. In most cases you pay a deposit of around 10% of the purchase price at that point. Under the most common form, the seller must repay double the deposit if they withdraw without valid reason. If the buyer withdraws without valid reason, they forfeit the deposit. Always have this contract checked in advance by an independent lawyer.
Have the owners association checked too
Besides the legal checks on the property itself, it is wise to have your lawyer or gestor also examine the owners association (comunidad de propietarios). Think of its financial health, planned maintenance work, service charges and the rules on tourist rental. That way you know exactly where you stand before you buy.
Plan your succession
A property in Spain is a valuable asset, but it is wise to think about what it means for those you leave behind. Depending on your personal situation, your nationality and your will, different inheritance rules may apply. Take advice in good time from an independent lawyer or tax specialist. In many cases a Spanish will makes the process considerably simpler for your heirs.
Budget for running costs
Besides the purchase price and the additional costs, as the owner of a property in Spain you will also face recurring annual charges. Think of property tax (IBI), any community fees, buildings and contents insurance, utilities and, where applicable, non-resident income tax. During the buying process we are happy to give you a realistic estimate of the annual charges.
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