First step: the NIE

A crucial step before embarking on the purchase of a property, obtaining the NIE is your first step to becoming an owner in Spain. In parallel, you can start step 2, the search for financing which can be carried out simultaneously, and also requires 2 months on average.

What is the NIE?

This is the Foreigner Identification Number. It is a personal, unique number that the Spanish administration assigns to each foreigner.

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

What is the cost of obtaining the NIE?

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

What are the processing times?

The average processing time is often 2 to 3 months. This is why it is necessary to start this process as quickly as possible.

👉 To learn more, see our complete guide on the NIE, which details how and where to obtain it, as well as the documents and forms necessary to obtain it.

Second step: the mortgage

Should you make a purchase offer before starting your financing search?

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

Take care of your financing first, in parallel with obtaining your NIE. Only then, move forward with your real estate purchase in Spain.

Why?

• You may underestimate the personal contribution required to buy in Spain.
• Indeed, a Spanish bank will only lend you 70% of the price of the property on average, and your personal contribution must therefore be 30% of the price of the property, to which must be added all additional costs.

On the total cost of the project, it is often estimated that 50% will be financed by a Spanish bank, and 50% by your own funds.

Beware of this error, it can cost you dearly:

Not validating your financing and your budget before making a purchase offer is an error that can cost you dearly.

• In Spain, sellers very often refuse clauses of non-obtainment of credit.
• You could lose up to 10% of the price of the property if you cannot finance the purchase.

👉 To learn more, see our complete guide which will explain how to obtain a mortgage in Spain.

Third step: define your project very precisely

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

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

1. The personal contribution

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

• A property of 200 000 € without work or furnishing.
• A property of 150 000 € with 25 000 € of work and furnishing.

2. The objective of the purchase

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

Fourth step: Buying well

The incompatibility triangle

You often have to choose between three criteria:

• Rental yield
• Location
• Aesthetics

Focus on the two criteria that matter most to you.

Fifth step: the purchase offer

The three steps:

• Make an offer.
• Sign the preliminary sales agreement.
• Sign the final deed.

Sixth step: your post-sale checklist

After the purchase, a few steps remain:

• Transfer the energy contracts to your name.
• Inform the co-ownership association.
• Pay the taxes related to the transaction.
• Register the purchase with the property registry.
• Decorate or furnish the property.