First step: the NIE

Obtaining your NIE is the first step on the road to becoming a homeowner in Spain. At the same time, you can launch step 2, the search for financing, which can be carried out simultaneously, and also takes an average of 2 months.

What is NIE?

This is the Foreign National Identification Number. This is a personal, unique number assigned to each foreigner by the Spanish authorities.

This number is indispensable for many administrative procedures, including opening a bank account or telephone line, renting or buying a home, and a thousand other things.

How much does it cost to obtain an NIE?

From a few euros to several hundred euros, depending on the option you choose.

How long does it take?

The average delay is often 2 to 3 months. That's why it's important to start the process as soon as possible.

👉 To find out more, see our complete guide to the NIE, which details how and where to obtain it, as well as the documents and forms required to obtain it.

Second step: the mortgage

Is it necessary to make an offer to purchase before starting your search for financing?

No, it's the worst mistake you could make.

Take care of your financing first, in parallel with obtaining your NIE. Only then can you move ahead with your property purchase in Spain.

Why?

• You risk underestimating the personal contribution required to buy in Spain.
• In fact, a Spanish bank will only lend you 70% of the price of the property on average, so your personal contribution will have to be 30% of the price of the property, to which all additional costs must be added.

Of the total cost of the project, you can often count on 50% being financed by a Spanish bank, and 50% by your own funds.

Beware of this mistake, it can cost you dearly:

Not having your financing and budget validated before making an offer to purchase is a mistake that can cost you dearly.

• In Spain, sellers very often refuse to accept credit default clauses.
• You could lose up to 10% of the price of the property if you fail to finance the purchase.

👉 F ind out more in our comprehensive guide to obtaining a mortgage in Spain.

Step 3: Define your project precisely

To avoid wasting time, it is essential to determine your criteria very precisely:

• What personal contribution?
• What is the purpose of the purchase?
• What criteria are important to you?

1. Personal contribution

If your personal contribution is €100,000, you can buy :

• A €200,000 property with no work or furnishings.
• A €150,000 property with €25,000 of work and furnishings.

2. Purpose of purchase

Rental investment or investment property? What income do you hope to generate? These questions will guide your search.

Fourth step: buying right

The incompatibility triangle

There are often three criteria to choose from:

• Rental yield
• Location
• Aesthetics

Focus on the two criteria that matter most to you.

Fifth step: the offer to purchase

The three stages:

• Formulate an offer.
• Sign the sales agreement.
• Sign the deed.

Step six: Your post-sale checklist

After the purchase, there are a few steps to take:

• Put energy contracts in your name.
• Inform the condominium manager.
• Pay taxes related to the transaction.
• Register the purchase in the property register.
• Decorate or furnish the home.