One — the price is not the cost
The advertised figure is what the seller receives. What leaves your account is between 8% and 13% more, and which end you land on is decided by one thing: whether the residence is a resale or a new build.
Resale (second and subsequent transfers) carries ITP — Impuesto sobre Transmisiones Patrimoniales — at 7% in Andalucia. New build bought from the developer carries IVA at 10% plus AJD stamp duty at 1.2%, so 11.2% in total.
On top of either: notary, land registry, and gestoría, together roughly 0.5% to 1%. Independent legal representation is customarily 1% of the price, often with a floor. A mortgage adds valuation and arrangement fees.
Worked plainly: a €2,000,000 resale costs about €140,000 in transfer tax and perhaps €30,000 in professional fees. The same money spent on a new build at €2,000,000 costs about €224,000 in tax. That difference — €84,000 — buys a great deal of furniture, and it is invisible in the listing price.
One further trap specific to Spain: the tax authority can assess transfer tax against its own reference value (valor de referencia) rather than the price you paid, if it considers the price low. Your lawyer checks this before you sign, not after.
Two — you cannot complete without an NIE
The NIE (Número de Identidad de Extranjero) is the foreigner identification number, and nothing happens without it: no deed, no utilities in your name, no Spanish bank account, no tax filing.
It is obtained either at a Spanish consulate in your country of residence or in Spain at a National Police station, and can be applied for through a representative with power of attorney. Timing varies by consulate from days to several weeks — which is exactly why it should be started at the brief stage rather than after an offer is accepted.
A Spanish bank account is the second practical prerequisite. Banks apply full source-of-funds checks to foreign buyers; assembling those documents takes longer than most people expect, and a delay here can push completion past a contractual deadline.
Three — buying property no longer gives you residency
Spain's Golden Visa — residency by investment, including the €500,000 property route — has been abolished. Purchasing a home in Spain confers no right of residence.
This matters most to buyers outside the EU, who remain subject to the Schengen 90-in-180-days rule regardless of what they own. If your plan requires more time in Spain than that, the route is a separate visa application on its own merits — the non-lucrative visa, a work or business route, or the special regime often called the Beckham Law for those relocating for employment.
Any agent still selling a Spanish property as a residency instrument is either out of date or telling you what you want to hear. Treat it as a signal about the adviser, not about the property.
Four — the lawyer is not the agent, and should not be
In Spain the estate agent is usually paid by the seller. That is normal and not sinister, but it means the agent is not your independent check on the asset. Instruct your own lawyer, chosen by you, before you sign anything.
What the lawyer actually verifies, and why each matters:
Nota Simple — the land registry extract naming the true owner and every charge, mortgage or embargo on the title. Debts in Spain attach to the property, not only to the person who ran them up.
Licence of first occupation and the cédula de habitabilidad — that the residence is legally habitable. Andalucia has a long history of properties built without complete permissions, particularly inland and on hillside plots.
Cadastral and registry agreement — that the built area on the deed matches what is physically there. Unregistered extensions and pool houses are common and must be regularised before, not after, you own them.
Community debts and the AEAT position — outstanding community fees and IBI transfer with the property.
None of this is exotic. All of it is routine, and all of it is why the eight-to-twelve-week timeline from accepted offer to completion is a feature rather than a delay.
Five — the deposit chain has teeth
Spanish practice moves through three stages, and the money hardens at each one.
Reserva — a reservation payment, commonly around €6,000 to €20,000 or a small percentage, which takes the property off the market for a defined window while checks run. Usually forfeited if you simply change your mind.
Arras penitenciales — the private contract, customarily 10% of the price. This is the stage most foreign buyers underestimate. Under Article 1454 of the Civil Code, a buyer who walks away loses the deposit and a seller who walks away repays double. It is a real, enforceable commitment on both sides.
Escritura — the notarial deed, signed before a notary with the balance paid, at which ownership transfers.
The practical consequence: do the legal work before the arras, not between arras and escritura. Once the private contract is signed, discovering an unregistered extension costs you the 10%, not the seller.
What this looks like in practice
The mechanics above are the same whether you are buying an apartment in Estepona or an estate in Benahavís. What changes with the price is how much the fifth point costs to get wrong.
Muse Selection represents buyers, not sellers, and works from the register rather than from one agency's stock — around 1,300 residences from three agency feeds, refreshed hourly. The practical use of that at this stage is simple: before you spend money on legal work, it is worth knowing whether what you want exists at the price you have in mind, and in which part of the coast.
Describe what you are looking for in the search below and the answer comes back on this page. Nobody asks for your name to see it.
“I would like to express my gratitude to the Muse real estate agency in Marbella, with whom I have had an exceptional collaboration during the process of purchasing a home for my clients. Without a doubt, they have a highly skilled and committed team. I wholeheartedly recommend their services.”
“From the first interaction, Maria demonstrates professionalism and a keen understanding of her clients’ needs. Whether buying or selling, her guidance is always informed, reliable, and tailored to the client’s best interests.”
Frequently asked questions
How much does buying a property in Spain cost on top of the price?
Budget 8% to 13% above the purchase price. A resale in Andalucia carries 7% ITP transfer tax; a new build carries 10% IVA plus 1.2% AJD stamp duty. Notary, registry and gestoría add roughly 0.5% to 1%, and independent legal representation is customarily 1%.
Do I need an NIE to buy property in Spain?
Yes. The NIE (foreigner identification number) is required to sign the deed, open a Spanish bank account and register utilities. Apply at a Spanish consulate or in Spain, or through a representative with power of attorney, and start it at the briefing stage rather than after an offer.
Does buying a house in Spain give you residency?
No. Spain has abolished the Golden Visa, including the €500,000 property route, so a purchase confers no right of residence. Non-EU buyers remain subject to the Schengen 90-in-180-days rule and need a separate visa on its own merits.
What happens if I pull out after signing the arras contract in Spain?
Under arras penitenciales — the customary 10% private contract — a buyer who withdraws forfeits the deposit and a seller who withdraws repays double, per Article 1454 of the Spanish Civil Code. This is why the legal checks belong before the arras, not after.