Buying Property in Costa del Sol as a Foreigner: Complete Guide
Spain welcomes foreign property buyers with open arms - there are no restrictions on non-EU citizens purchasing real estate. Nearly 40% of Costa del Sol buyers come from abroad, so the process is well-established. However, you'll need specific documents and should understand the Spanish buying process, which differs from the UK, US, or Northern European systems.
What You'll Need
| Requirement | What It Is | How to Get It |
|---|---|---|
| NIE Number | Foreign identification number | Police station or Spanish consulate |
| Spanish Bank Account | For payments and utilities | Open with passport + NIE |
| Proof of Funds | Bank statements showing purchase money | Your home bank |
| Passport | Valid ID document | Already have |
| Lawyer | Independent legal representation | Essential - find English-speaking |
The NIE: Your Essential First Step
The NIE (Número de Identificación de Extranjero) is a unique identification number for non-Spanish nationals. You cannot buy property, open a bank account, or connect utilities without it. It's not the same as residency - it's simply a tax identification number that all foreigners need for financial transactions in Spain.
How to Get Your NIE
- In Spain: Apply at a National Police station (Comisaría) with an "Extranjería" department. Bring passport, completed EX-15 form, proof of why you need it (property search letter from estate agent works), and €12 fee receipt (Modelo 790). Processing: same day to several weeks depending on location.
- From Abroad: Apply through the Spanish Embassy or Consulate in your home country. Takes 6-10 weeks typically. Good option if you're not rushing.
- Through a Lawyer/Gestor: Many buyers hire a Spanish lawyer or gestoría to obtain the NIE on their behalf using power of attorney. Adds €100-300 but saves hassle.
NIE Tip
Book your NIE appointment as early as possible - popular police stations have long waiting lists. Alternatively, try smaller towns near your target area which often have shorter waits.
Opening a Spanish Bank Account
You'll need a Spanish bank account to pay for the property, utilities, community fees, and taxes. Major banks like Santander, BBVA, CaixaBank, and Sabadell have English-speaking staff in Costa del Sol branches. Bring your passport, NIE, proof of address (home country is fine), and proof of income or funds. Some banks now allow non-resident account opening online.
The Spanish Buying Process
The Spanish property buying process differs from Anglo-Saxon systems. There's no "exchange and completion" - instead, you sign at the notary and ownership transfers immediately. The typical timeline is 6-12 weeks from offer to completion, though it can be faster or slower depending on circumstances.
Step-by-Step Process
- 1. Find Property & Make Offer: Verbal offer through agent, negotiation, agreed price.
- 2. Reservation Contract: Pay €3,000-10,000 to take property off market (usually 1-2 weeks). Get lawyer involved now.
- 3. Due Diligence: Your lawyer checks land registry (Registro de la Propiedad), confirms ownership, checks for debts/charges, verifies building licenses, reviews community rules.
- 4. Private Purchase Contract (Contrato de Arras): Pay 10% deposit. If you pull out, you lose deposit. If seller pulls out, they pay you double.
- 5. Arrange Finances: Transfer funds, arrange mortgage if needed. Spanish banks lend 60-70% LTV to non-residents.
- 6. Notary Signing (Escritura): Both parties sign before notary. You pay balance, receive keys. Ownership transfers immediately.
- 7. Post-Completion: Lawyer registers deed, pays taxes, transfers utilities. Takes 2-3 months for registered deed.
Why You Need a Lawyer
Never buy property in Spain without independent legal representation. Spanish estate agents represent the seller, not you. A good lawyer costs €1,500-3,000 and protects you from costly mistakes. They'll check the property is legal, debt-free, and that you understand what you're signing.
Mortgages for Non-Residents
Spanish banks lend to non-residents, typically offering 60-70% loan-to-value (vs 80% for residents). Interest rates are competitive with other European markets. You'll need proof of income, tax returns, existing mortgage statements, and bank statements. Some international mortgage brokers specialize in Costa del Sol purchases and can compare offers across multiple banks.
Golden Visa Update
Spain's Golden Visa program - which offered residency through property investments of €500,000 or more - is scheduled for abolition in 2025. If residency through investment is important to you, check the current status with a lawyer and explore alternative routes like the non-lucrative visa or digital nomad visa.
Common Mistakes to Avoid
- Skipping the lawyer to save money - false economy that can cost thousands
- Not checking the "nota simple" (land registry extract) for debts or charges
- Buying before getting your NIE - causes delays and complications
- Underestimating total costs - budget 10-15% above property price
- Rushing due diligence - illegal builds and planning issues exist
- Not understanding community fees and rules before buying
Key Takeaways
- Both EU and non-EU citizens can buy property in Spain without restrictions
- Get your NIE first - you can't do anything without it
- Always use an independent English-speaking lawyer (€1,500-3,000)
- Budget 10-15% above purchase price for taxes and fees
- Timeline is typically 6-12 weeks from offer to keys