Purchasing a property in Spain may seem like a big step, and many clients initially feel uncertain due to limited information about the process and associated costs. To support you, we have prepared this detailed guide to answer the most common questions related to buying property in Spain.

How the Spanish Buying Process Works

At AlNouri Group, we are dedicated to guiding you through the entire purchase journey and assisting with all the after-sale services you may need. From the first step to the last, we stand by your side. Thanks to our years of experience on the Costa del Sol, we have developed strong connections and can recommend the best independent legal and financial advisors to ensure you feel confident at every stage.

Step 1: Reservation Contract

Once you have found the perfect property and decide to move forward, the first step is to sign a Reservation Contract. This is a standard procedure in Spain to secure a property for a specified period while your lawyer conducts due diligence.

The reservation contract usually includes:

• Full names of buyer and vendor
• Price of the property
• Property address
• Date to sign the Private Purchase Contract (PPC)
• Deposit amount and reservation period
• Any special conditions

Deposit: A typical reservation deposit is €6,000, payable by bank transfer, credit card, or cash. It may be held in the AlNouri Group client account or by your chosen lawyer. This deposit secures the property while due diligence is carried out or financing is arranged.

• If your lawyer discovers any irregularities, the deposit is fully refundable.
• If the purchase proceeds, the deposit will be applied toward the purchase price.

Step 2: Private Purchase Contract (PPC)

After due diligence is completed, the next step is the Private Purchase Contract (PPC). The PPC is a more detailed agreement between buyer and vendor, confirming the exact terms and conditions of the purchase. It typically includes:

• Legal declaration from the vendor confirming their right to sell
• Property details (address, size, cadastral reference in the land registry)
• Completion and handover date
• Agreed conditions

Once the PPC is signed by both parties, the sale moves forward to completion.

Step 3: Completion at the Notary

The final step takes place before a Spanish Notary, where both buyer and vendor sign the completion contract. This contract is similar to the PPC but notarized, and it legally transfers ownership of the property. Following completion, your lawyer will register the property in your name at the Land Registry.

Congratulations — at this point, you are the official owner of your Spanish property!

Purchase Costs

When purchasing property in Spain, you should budget an additional 10%–13.5% of the purchase price to cover associated costs:

• 10% VAT (IVA) on new properties, 7% transfer tax on resales
• 1% Notary fees
• 1% Legal fees (lawyer’s services)
• 1.5% Stamp Duty (Impuesto de Actos Jurídicos Documentados)
• For company-owned land, 21% VAT applies