Buying a Property in Spain: A Smart Lifestyle and Investment Choice

Buying a property in Spain is not only a dream for many—it’s also a sound long-term investment. With a stable real estate market, strong international demand, and one of the most desirable climates in Europe, Spain continues to attract buyers from all over the world. Whether you’re seeking a vacation home, a rental investment, or a permanent residence, understanding the buying process and the benefits of Spanish property ownership is essential.

Why Invest in Spanish Real Estate?

The Spanish property market has shown consistent recovery and growth over the past decade. Driven by foreign demand, infrastructure improvements, and a thriving tourism sector, property on the Costa del Sol in particular offers high potential for both capital appreciation and rental income.

Spain is part of the EU, and its legal and financial systems are transparent and accessible for international buyers. This provides confidence and security when purchasing real estate. Additionally, the relatively lower cost of living and property prices compared to other Western European countries make Spain a highly competitive option.

Some key advantages of buying in Spain include:

• Excellent climate with over 300 days of sunshine per year

• High-quality healthcare and modern infrastructure

• Strong short- and long-term rental market

• No restrictions for foreign buyers

• Attractive mortgage conditions for non-residents

Understanding the Buying Process

While the process of buying property in Spain is straightforward, it’s important to follow the right steps to ensure a smooth and secure purchase. Here’s an overview:

1. Choose an Independent Lawyer
   A local, independent lawyer will protect your interests, check all legal documentation, and guide you through every step of the purchase. This is a crucial first move.

2. Get a Spanish NIE Number
   An NIE (Número de Identificación de Extranjero) is a foreigner identification number and is required for property purchases, setting up utilities, and banking in Spain.

3. Secure Financing (if needed)
   Non-residents can typically get a Spanish mortgage covering up to 60-70% of the property’s value. Getting a pre-approval can strengthen your negotiating position.

4. Sign the Reservation Contract
   Once you’ve chosen a property, a reservation fee (usually between €6,000 and €10,000) secures it while legal checks are performed.

5. Sign the Private Purchase Contract
   This contract confirms the terms of the sale. At this stage, a 10% deposit is usually paid (minus the reservation amount).

6. Complete the Sale at the Notary
   Final payment is made, and the deed (escritura) is signed in front of a notary. The property is now legally yours.

7. Register the Property and Pay Taxes
   Your lawyer will register the property and handle all tax payments, including transfer tax, notary fees, and land registry costs.

What Are the Buying Costs?

In addition to the property price, buyers should account for around 10–12% in additional costs, which typically cover:

• Transfer Tax or VAT (depending on whether it’s a resale or new build)

• Notary and land registry fees

• Legal fees

• Stamp duty (on new builds)

• Bank and mortgage-related costs, if applicable

Investment Potential and Rental Income

The Costa del Sol and wider Spanish coastline are high-demand areas for both short-term holiday lets and long-term rentals. Many buyers choose to rent out their property part-time to cover running costs and generate passive income.

Properties in popular tourist areas can yield solid returns during the high season, especially if marketed through platforms like Airbnb or Booking.com. Long-term rentals, on the other hand, offer more stability and lower management costs.

Working with a local property management company can help you maximize income while ensuring everything runs smoothly in your absence.

Choosing the Right Partner

At Plexo Properties, we work with buyers from all over Europe and beyond, helping them find, purchase, and manage properties throughout the Costa del Sol. We are fully transparent, multilingual, and focused on guiding you through every aspect of the buying journey—from the first viewing to handing over the keys and beyond.

Whether you’re a first-time buyer or an experienced investor, our goal is to make your Spanish property journey as simple, safe, and successful as possible.