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12 Essential Steps for Foreigners Buying Property in Spain

With its stunning climate, lifestyle, and investment opportunities, Mallorca has become an attractive destination for foreigners looking to purchase property. However, buying a home in Spain involves several important steps, from hiring legal assistance to securing financing and completing all necessary paperwork. Here’s my guide through the process:

1. View properties

with Licensed Real Estate Agents if you would like to buy a property in the Balearics Islands, Spain, Team Puerto de Andratx will be in your service to help you out in a professional and smooth way. 

2. Offer

When you find the right property, you have to put an offer in written form to the us by mal. When the offer is accepted, then action is needed fast, so the property is not being sold to someone else. 

3. Hire a Legal Specialist  

If you do not have one, we will help you to engage a lawyer to guide you through the purchasing process. A knowledgeable advisor can help with legalities, minimizing travel and ensuring a smooth transaction. Although not mandatory, hiring a specialist is highly recommended. 

4. Conduct a Feasibility Study 

If you require a mortgage, initiate a feasibility study. Our recommendation is Lionsgate Mortgage Broker in Palma de Mallorca. They are always open to give you advice without any charge. 

5. Apply for a NIE (Foreigner’s Identification Number)  

Foreign buyers must obtain a NIE, an ID number required for all official transactions in Spain. You can apply from your Spanish Embassy in your country or go through a lawyer in Spain if you do not want to apply for it yourself. 

6. Open a Spanish Bank Account 

A local bank account is essential, as all taxes and fees related to the purchase must be paid through this account. Many banks allow foreigners from eligible European countries to open accounts without traveling, often via a power of attorney if handled remotely.  This is also something your lawyer can help you with, but it is easy to visit the bank by yourselves when you are in Mallorca. 

7. Arrange a Property Inspection  

Hire a specialized inspection company to assess the property’s condition. Your representative in Spain will obtain a "Nota Simple Registral" (property report), which details of the property's legal status. 

8. Gather Documents for a Mortgage  

If financing is required, collect the necessary documents for the bank to evaluate your financial standing. Each bank may have specific requirements.

9. Get a Property Appraisal if mortgage is needed. 

Before finalizing the mortgage, have the property appraised to determine its actual market value.

10. Sign Pre-Contractual Documents/Arras/Option Contract and Meet a Notary  

Once pre-contractual documents are signed, there’s a mandatory cooling-off period (10 days) to address any questions with your notary. This step ensures you fully understand the terms.

11. Pay a Reservation Deposit

To reserve the property, make a down payment (usually 10% of the purchase price). Note that this deposit may be forfeited if the purchase doesn’t proceed for reasons outside the seller’s control. However, if the seller withdraws, they may be obligated to return double the deposit. Our recommendations are that this deposit should be paid at the Notary.

12. Sign the Purchase Agreement and Mortgage  

The final step is signing the purchase contract and mortgage in the presence of a notary. This agreement legally transfers the property in exchange for the agreed payment amount, with potential legal consequences for breach by either party.

Following these steps helps ensure a secure and straightforward property purchase in Spain.

Looking forward to help you to find your dream holiday home in Spain.

/ Liza Markert

Luxury Real Estate Agent

Team Puerto de Andratx

Team Puerto de Andratx