Guide to Buying a Property in Spain as a Foreigner

Buying a property in Spain is an exciting prospect, whether you dream of owning a second home by the Mediterranean or are looking for a property that could generate rental income. For those living in other European countries, understanding the buying process before travelling allows you to compare options, plan your budget and make decisions with greater peace of mind.

The first step is to define your reason for buying: enjoying holidays, relocating after retirement or investing in a property to rent out. It is then important to calculate the full cost of the purchase rather than focusing solely on the advertised price. Taxes depend on the type of property: generally, a new-build property purchased from a developer is subject to VAT, while a resale property is subject to Property Transfer Tax (ITP). You should also consider notary fees, Land Registry costs and any potential mortgage expenses.

To ensure a smooth purchase, keep these essential steps in mind:

• Apply for your NIE (Foreigner Identification Number), which is required for financial and property transactions in Spain.
• Explore your financing options and provide proof of the source of your funds, particularly if you are buying from abroad.
• Check the Land Registry extract (nota simple), any outstanding charges, the property's planning status and all relevant documentation.
• Review the reservation and deposit agreement (contrato de arras) before making any payments.
• Complete the purchase before a notary and arrange for the property to be registered with the Spanish Land Registry.

If you intend to rent out your property, you should also research the relevant taxes, ongoing expenses and local regulations governing holiday rentals.

What Types of Property Can You Choose When Buying a Property in Spain?

Buying a property in Spain also means deciding how you want to enjoy it. Spain's eastern Mediterranean coast offers beautiful beaches, plenty of sunshine, golf courses, restaurants and year-round amenities, making it particularly appealing to those planning extended stays, an active retirement or regular holidays.

At Desire Properties, we offer a selection of apartments, penthouses, bungalows, townhouses and villas, with a particular focus on new-build developments and turnkey properties. We also have resale properties for buyers who prefer an established location or are considering renovating a home.

The options vary depending on the area. Pilar de la Horadada and Orihuela Costa are attractive for their proximity to beaches and golf courses; Finestrat and Benidorm combine excellent amenities, leisure facilities and residential developments; while Altea Hills appeals to those seeking privacy and beautiful views. On the Costa Cálida, Santa Rosalía Lake & Life Resort offers another appealing residential option.

If you are buying as an investment, appearance alone should not determine your decision. Consider rental demand, location, maintenance costs and estimated net rental yields. A property that is ideal for spending August holidays may not necessarily perform equally well as a long-term rental investment.

Buying a Property in Spain with Desire Properties: Support from Start to Finish

Buying a property in Spain from abroad becomes much easier when you have experienced professionals who understand the local market and can assist you in your own language. At Desire Properties, we work with international buyers, including Hungarian clients, tailoring each property search to their budget, timescale and expectations.

Our team of estate agents on the Costa Blanca supports you throughout the process, from selecting suitable properties and arranging in-person or video viewings to negotiating the purchase and completing the transaction. We can also provide assistance with legal procedures, NIE applications, financing, banking arrangements and after-sales services. This allows you to organise your purchase even before travelling to Spain.

For investors, we also offer holiday, seasonal and long-term rental management services, depending on the property's characteristics and applicable regulations. We help you assess potential rental income and expenses so that your investment decisions are based on realistic expectations, without making guarantees about returns.

Are you looking for a property where you can enjoy the Mediterranean lifestyle or expand your property investment portfolio? Tell us what you are looking for, and we will help you explore the most suitable opportunities. Complete the contact form on our website, call us on +34 603 314 570, email us at office@desire-properties.com or visit us at Calle San Juan, 12, 03190 Pilar de la Horadada (Alicante), Spain.