An Expat’s Experience Buying Property in Spain

After Covid, my husband and I found we had money in our pockets due to the travel lull… and a reckless disposition to spend it.

So, in 2021 we bought an apartment (sight unseen) in Zaragoza, in northern Spain. It’s a place we had visited often due to my husband’s family connections.

Before the pandemic, we made regular trips to Zaragoza with our young daughter. Traveling with a small child can be difficult, so a more permanent base in Spain seemed a good option for us. We could keep clothing, cosmetics, toys, and home goods there so we’d never have to pack much. It would essentially mean being able to visit Spain whenever we wanted, without having to worry much about planning, packing, and accommodation.

We also figured we could rent out the apartment when we weren’t using it. Friends warned us that for our purposes it was not a good financial decision. But frankly, we didn’t care. Whether or not it brought us any kind of future wealth was irrelevant. Buying this apartment let us live out a dream—it would provide a lifetime of priceless memories with our growing daughter.

We are now the proud owners of a cozy one-bedroom, one-bathroom apartment in the heart of Zaragoza’s historic center (we paid just €76,250). It’s perfectly located steps from the main plaza. Built in 1900, it features beautiful dark-hued original wood beams, a wood burning stove, front and back balconies with antique oak shutters and iron knobs. It offers us a dream escape, even if it’s only for a few weeks a year.

Zaragoza is a relatively quiet city that blends Moorish and Roman architectures and is home to the 11th-century Aljaferia, a Moorish Palace built during the centuries-long Muslim reign of Spain.

The historic center features meandering alleyways full of tapas bars and the streets always lead to another park, monument, or green space. The mighty Ebro River runs through the city and invites moments of reflection against a backdrop of stunning sunsets and the ornate Basilica del Pilar.

Though steeped in history, there’s also a modern side to Zaragoza with an extensive public transport system and lively shopping plazas. We’ve found the city welcoming to families, and it’s convenient to both Madrid and Barcelona by train (about a 90-minute journey to both cities).

Buying a property overseas from our home in the U.S. was doable, and we learned a lot along the way. Below are the steps we took and some tips you might find helpful if you’re considering buying property in Spain.

1. No buying restrictions. The first thing to know is there are no buying restrictions for foreigners who want to purchase a property in Spain. Anyone can buy real estate here.

2. Obtain a Foreigner Identification Number (NIE) through your local Spanish consulate: This mandatory tax ID number must be requested at the Spanish consular offices located in the applicant’s country of residence, or in Spain at the General Commissariat for Immigration (immigration office). I had my ID number about two to three weeks after my consulate appointment. We ran into an issue at closing because I had my NIE but my husband did not. So I’d recommend that everyone eligible for an NIE apply for one.

3. Research apartments and properties: Don’t box yourself in with one real estate agent when searching for property. I found the property app Idealista the best for searches. The real estate agent’s contact details are included in the listings.

Tip: If you’re emailing real estate agents, use Google Translate and write to them in Spanish initially. I had more success getting a reply with this approach. If you don’t speak Spanish, it’s a good idea to have a Spanish speaker to help with a phone/WhatsApp call in the initial stages of your search.

4. Open a bank account in Spain: When buying a property in Spain, you’ll need a bank account for your property closing, mainly for the transfer of utilities, but it’s also valuable for providing mortgage options and homeowner’s insurance. There are a lot of good banking options for expats, retirees, and country straddlers like myself. We went with Banco Sabadell.

5. Sort out your financing: A mortgage was not possible for us in Spain, as some Spanish banks restrict residents of certain countries (like the U.S.) from obtaining one. We decided to pay in full at closing and take out a loan on our home in Florida to help.

6. Obtain the services of a lawyer in Spain: It’s a good idea to have a Spanish lawyer to help with your purchase. Ours didn’t speak English but was useful in reviewing the contracts for us. All our business was conducted by email, with only a few calls via WhatsApp.

Fees for our lawyer’s services were very affordable, at around €350 ($379). When looking for a lawyer, you can ask your real estate agent for recommendations, search Google for lawyers in your desired town of residence (which is what I did), or ask expat Facebook groups.

7. Determine how you’ll carry out the sale: Will you complete your purchase in person or will you need a power of attorney? If you choose a power of attorney, check your nearest Spanish consulate’s website and follow their instructions. Documents must be notarized and stamped with the Hague Apostille, which authenticates documents for use in other countries. Follow instructions on the consulate website for how to obtain this stamp.

8. Determine your offer: We noticed that almost all the apartments we were looking at were selling at listing price. Haggling or reductions in list price did not appear to be common. Ultimately, we made an offer a few thousand euro lower than the asking price, on advice of our real estate agent… and we were successful.

9. Sign the arras contract: At this point, we paid a deposit, also called a señal. It’s typically a small, one-time fixed fee—in our case, €1,000 ($1,082). Signing this document indicates your intent to buy at the agreed upon offer price and the property is then removed from the market.

In order to submit our payment, we had to do a wire transfer from our local bank to the real estate agent. You have about seven to 14 days to secure funding and put down the earnest money. If for some reason the arras agreement falls through, this money is refundable.

Remember, exchange rates on a wire transfer will incur a lot of additional fees. Keep an eye on the rate and pounce when it’s good.

Tip: Always round up on your transferred balance amount because of the unknown fees and currency conversion. We accidentally underpaid twice and overpaid the third time. All money exchanged is handled and insured by the real estate agent through a third party insurance company, so you know your money is going where it should. You should get any overage payments returned at closing.

As for reviewing the contract, Google Translate offers an online tool for translating entire documents while still keeping the formatting. This is what we did to review the language of our contracts before signing. Have your lawyer manage any clauses or modifications that may need to be made.

Note: In America, you’d typically have someone do an inspection on the property around this time. From my research, this is not common practice in Spain, unless you’re building a new home.

10. Sign the Reserva de Compraventa: This contract is the reservation deposit of up to 10% of sale. This is beyond just intent, which can be backed out of. This is “I am buying the property and here is more money to prove it.” Like with the arras, the money is wire transferred.

11. Set your closing date. With the reserva in hand, expect a loose two- to three-month window for picking a closing date, depending on how much time you need to gather your finances. You will learn of the final fees required for closing at this point.

Here are example payments to expect at closing:

1. The remaining funds (less the arras and reserva fees). If you are not paying in cash, work with your real estate agent on the details of your mortgage or loan.

2. 8% Property Transfer Tax (Impuesto de Transmisiones Patrimoniales)

3. Real Estate Agent Fees + VAT (21%): €3,000 to €5,000 generally was the price range we were looking at.

4. Property Registry (Registro de la Propiedad) and notary (notaria) fees of about €1,000.

12. Final fees and deed signing/closing at the notary: Money is paid either by check at the closing, or if you use a wire transfer, it is held by the real estate agent until the final closing date. In total, including the purchase price and notary, registration fees etc., we paid €87,156 ($93,785).