How does buying a villa in Spain work for foreign buyers?

Key facts

• All foreign buyers need an NIE, a Spanish tax identification number, before any money changes hands. Without one, the purchase cannot complete.
• ITP (Property Transfer Tax) on resale properties in Andalucia runs at a flat 7% of the purchase price. Budget 8-13% in total when you add legal fees, notary costs, and Land Registry registration.
• The reservation deposit to take a villa off the market typically runs from €6,000-€10,000 for properties in the €1m-€3m range, and €10,000-€20,000 for higher-end properties above €3m.
• A local solicitor is not optional, they carry out due diligence on the title, check for debts attached to the property, and represent you at the notary if you cannot be present yourself.
• The process from reservation to completion typically takes two to four months, though timelines can stretch if documentation is complex or either party moves slowly.

Step by step

1. 1
   Get your NIE
   The NIE (Número de Identificación de Extranjero) is your Spanish tax identification number. You cannot buy property, open a bank account, or pay taxes in Spain without one. Apply in person at a Spanish consulate in your home country or at a police station in Spain. Many buyers instruct their solicitor to obtain it on their behalf via power of attorney, slower but far more convenient if you are not yet in the country. Do this before anything else.
2. 2
   Open a Spanish bank account
   You will need a Spanish bank account to pay the purchase price, taxes, and ongoing costs such as community fees, utility bills, and IBI (local property tax). Most major Spanish banks, Santander, BBVA, CaixaBank, will open a non-resident account with your passport and NIE. Some buyers use a currency specialist alongside a Spanish account to manage the exchange rate on large transfers. Get the account open early; it takes longer than most people expect.
3. 3
   Instruct a local solicitor
   Your solicitor is the most important appointment you make. They carry out due diligence on the title deed, check the Land Registry for debts or charges attached to the property, verify planning permissions, confirm the seller has the legal right to sell, and ensure the property is free of any outstanding community fees or utility arrears. In the Golden Triangle, experienced solicitors who work with international buyers are well established. Your solicitor can also hold power of attorney to represent you at completion if you are not physically present in Spain.
4. 4
   Pay the reservation deposit and sign the reservation agreement
   Once you agree a price, a reservation deposit takes the property off the market while due diligence is carried out. For villas priced between €1m and €3m, expect to pay €6,000-€10,000. For higher-end properties above €3m, €10,000-€20,000 is common. This is typically paid directly to the agent or into an escrow account, not to the vendor directly, check the arrangement carefully with your solicitor before transferring anything.
5. 5
   Sign the private purchase contract (contrato de arras) and pay 10%
   The contrato de arras is the binding private purchase contract. At this stage you typically pay 10% of the agreed purchase price. This is a significant commitment: if you pull out after signing, you lose the 10%. If the vendor pulls out, they owe you double. The contract sets the completion date, the agreed price, and the conditions of the sale. Your solicitor should review every line before you sign.
6. 6
   Complete at the notary
   Completion takes place before a Spanish notary, who verifies the identities of both parties, reads the escritura (title deed) aloud, and witnesses the transfer. You pay the outstanding balance of the purchase price at this point. The notary then registers the new title with the Land Registry. If you cannot attend in person, your solicitor can complete on your behalf under power of attorney, perfectly standard for non-resident buyers.
7. 7
   Pay taxes, fees, and register the property
   After completion, ITP at 7% of the purchase price is due to the Junta de Andalucia, along with notary fees and Land Registry registration costs. The total acquisition cost on top of the purchase price typically runs 8-13%. Your solicitor manages the filing. Once registered, the property is legally yours, and you can begin the conversation about how to make it earn.

Do I need to be in Spain to complete a villa purchase?

No. Non-resident buyers complete purchases in Spain remotely every day. The mechanism is a power of attorney, a legal document that authorises your Spanish solicitor to sign on your behalf at the notary. It needs to be signed in front of a notary in your home country and apostilled, which adds a small administrative step but is entirely routine. Most experienced solicitors in the Golden Triangle handle this regularly for UK, Scandinavian, and Northern European clients. You still need to be involved in the decisions; you simply do not need to be physically present in Spain on the day the escritura is signed.

What are the ongoing costs of owning a villa in Spain as a non-resident?

Ownership costs go beyond the mortgage if you have one. IBI, the annual local property tax, is calculated on the cadastral value and varies by municipality. Community fees apply if the property sits within a gated development or urbanisation. Non-resident owners also pay an annual wealth tax declaration in Spain and, even if the property is not rented out, a deemed income tax on its notional rental value. Utilities, electricity, water, internet, run continuously whether you are in residence or not. A local management company or key holder handles the day-to-day oversight, cleaners, pool technicians, gardeners, costs that are real but predictable. None of this is a reason not to buy. It is simply what ownership in Spain actually looks like, and a local solicitor or tax adviser will set out the full picture clearly before you commit.

Can rental income from a Marbella villa offset my ownership costs?

Absolutely, and for many non-resident owners in the Golden Triangle, rental income does exactly that, and then some. A well-positioned villa marketed properly across all the major booking platforms can generate anywhere from €30,000 to over €100,000 in annual rental income, depending on size, location, and how many peak-season weeks are filled. July and August alone, when nightly rates can reach €5,000 or more for larger properties, account for a significant share of the year’s total. Shoulder seasons, May, June, September, October, add meaningfully when the marketing is done well. If you are buying with the intention of renting the property out, talking to a rental management team before you complete is worth doing, some locations and configurations let significantly better than others.

Three things foreign buyers commonly get wrong

The first is moving too fast without a solicitor. In a market where well-priced properties with sea views move quickly, it is tempting to skip straight to signing. Buyers who do this occasionally discover debts, unregistered extensions, or planning irregularities that the seller had not disclosed. A local solicitor carrying out proper due diligence before the contrato de arras is the single most important step, not an optional add-on.

The second is underestimating the total acquisition cost. The purchase price is only the starting point. ITP at 7%, plus legal fees, notary, and Land Registry, adds up to 8-13% on top. A buyer expecting to spend €2m and budgeting nothing beyond that figure is in for a surprise. Build the full cost into your calculations from the start.

The third is managing currency risk carelessly. Large transfers at an unfavourable exchange rate can cost tens of thousands of euros on a villa purchase. Many experienced buyers use a currency specialist to lock in rates ahead of the key payment stages, the 10% arras payment and the final balance at completion. It is worth thinking about early, not at the last moment when the notary date is confirmed.

Are you ready to start the process?

If you can answer yes to the following, you are in a solid position to move. First: do you have your NIE, or have you instructed a solicitor to obtain one? If not, that is day one. Second: do you have a clear budget that includes 8-13% on top of the purchase price for taxes and fees, not just the headline figure? Third: have you identified a local solicitor with experience acting for non-resident buyers in the Golden Triangle? If the answer to any of these is no, those are the things to resolve before you start viewing. The process moves faster than most buyers expect once a property is found, being prepared on the legal and financial side means you can commit with confidence rather than scrambling to catch up.