Frequently asked questions about buying property in Spain
These are the answers we give on the phone, in the same words. Twenty four questions, the ones Czech buyers ask most, grouped by what you are working on rather than alphabetically. Every answer ends with a link to the page that takes the topic apart properly.
- approximately above the purchase price for a new build
- 13 %
- approximately above the purchase price for a resale property
- 9 %
- around this much of the value a bank finances for a Czech non-resident
- 50 %
- how many times you need to come to Spain
- 1×
How does buying in Spain actually work, and how long does it take?
A finished property takes a few weeks to a few months from reservation to keys, and a new build can take another two years on top. One trip is enough and two is better, because almost every step can be signed through a power of attorney.How does the entire purchase process work and how long does it take?
For a completed property, you should typically expect several weeks to several months from reservation to receiving the keys. With a new build, it depends on the stage of the project. You may be buying a completed apartment, but also a project that will be completed over the next two years. We describe the entire process, from selection through legal checks to the notary, above.
How many times do I need to visit Spain?
Once is enough, and twice is better. The entire process can be handled remotely with a power of attorney, but we would still prefer you to visit at least once.
Can I buy a property even if I do not live in Spain?
Yes. Buying a property and Spanish residency are two different things. You can own a property as a Czech resident, and much of the process can be handled through a power of attorney.
Do I need an NIE and a Spanish bank account to buy a property?
You need an NIE. A Spanish bank account is very useful in practice. An NIE is a foreigner's identification number, which you will need for the purchase, taxes and other property-related matters. We arrange it with a lawyer in good time, because waiting for it when you are about to sign is an unnecessary way to complicate the purchase.
Who should own the property?
You, both spouses, or someone else, depending on your family and financial situation. There is no single right answer. The ownership structure may later affect inheritance, taxes and the sale, so it is better to decide this with a lawyer and tax adviser before signing the purchase contract, not at the notary's office. If you are buying as a couple, have children, own significant assets in Spain or are considering buying through a company, tell the lawyer at the very beginning.
What will the purchase cost you beyond the price?
Around 13 % on top of the price on a new build and around 9 % on a resale, and if you need a mortgage as a Czech non-resident, plan on borrowing about half of the value the bank sets rather than the 70 or 80 % you may be expecting.How much will the purchase cost me in total beyond the property price?
For a new build, allow approximately 13 % on top of the purchase price, and around 9 % for a resale property. The biggest difference is in the taxes: for a new build, you pay 10 % VAT and also AJD in Andalusia, while for a resale property, the transfer tax is 7 %. You also need to add the lawyer, notary, land registry and several smaller items. You can calculate the full purchase above on the page based on the property price.
How much of my own money do I need if I want a mortgage?
It mainly depends on whether you are buying a new build or a resale property.For a new build, it is a good idea to have approximately 20 to 40 % of the purchase price ready for payments that may be due before the project is completed. You also need your own money for taxes and additional purchase costs, including 10% VAT and other costs related to the transfer.For a resale property, as a Czech non-resident, realistically expect the bank to finance approximately half of the value it assigns to the property itself. You therefore need to have the rest of the purchase price and the purchase costs from your own funds.For a property costing 500 000 €, your own cash is therefore often not 100 000 or 150 000 €, but significantly more. That is why we arrange financing before the reservation, not only once you have decided on a specific property.
Can I get a mortgage as a Czech citizen?
Yes, but as a Czech non-resident, do not automatically expect financing of 70 or 80 % of the price.With income in Czech koruna, it is realistic to expect financing of around 50 % of the value determined by the bank. For some clients, the offer may be better, while for others it may be worse, depending on their income, liabilities, age, income currency and the specific bank.It is also important that the bank does not calculate the mortgage from the purchase price, but from its own valuation. If you are buying for 500 000 €, but the bank values the property at 470 000 €, the financing is calculated from 470 000 €.That is why, before you choose a property, we check what financing you can realistically expect and how much of your own funds you will need.
How do I transfer money from Czech koruna to euros?
You will pay the largest part of the purchase in euros, so for a larger amount it makes sense to consider not only the transfer fee, but mainly the actual exchange rate. You can transfer the money through a Czech bank or a specialised currency exchange provider, and for larger amounts it is worth comparing the offers. Above all, do not leave the transfer until the last minute. The bank may ask you to prove the source of the money or delay the transfer due to an internal check. Based on the payment schedule, we will tell you in advance when you will need each amount.
Will I have to prove where my money comes from?
Yes. For a larger transaction, expect the bank and other parties involved in the transaction to ask you to prove the source of the funds. If the money comes from the sale of a company, dividends, investments or another more complex structure, arrange the documentation before you start transferring the money.
A new build costs about 13 % more than the price, a resale about 9 %The same answer as the first question in this group, laid out so the two routes can be compared side by side. Indicative figures, from our own cost calculator on the homepage.
Run this on your own price rather than on an example. The calculator takes the property price and returns the whole purchase, item by item.
| New build | Resale property | |
|---|---|---|
| Total on top of the price | around 13 % | around 9 % |
| The main tax | 10 % VAT | transfer tax 7 % |
| Andalusian stamp duty | AJD | not charged |
| Also payable | lawyer, notary, land registry and several smaller items | lawyer, notary, land registry and several smaller items |
Where is your money actually at risk, and what protects it?
In one place only: the reservation, which is the single payment made outside the guarantee system. Everything after it is protected either by a bank guarantee issued in your name or by your own lawyer deciding when the money is released.How is my money protected?
It depends on whether you are buying a new build or a resale property.For a new build, the bank guarantee is the most important protection. Payments you send to the developer before the construction is completed must be protected according to the specific payment arrangement, and before sending the money, the lawyer checks the account, the documentation and the security applicable to that payment. For payments covered by a bank guarantee, you receive confirmation relating to the specific amount and buyer.For a resale property, the process is set up differently. The lawyer monitors the contracts, deadlines and method of transfer so that the seller receives the money only when it is actually due to be released under the transaction.So it is not only about where you send the money. Before every significant payment, the lawyer checks why you are sending it, to whom and under what conditions.
Is the reservation fee refundable if the lawyer finds a problem?
It depends on the wording of the reservation agreement and varies by developer and seller. The reservation fee is the only payment outside the guarantee system, so it should be small and the agreement must clearly state the conditions for its refund. That is why the lawyer reads it before the money is sent, not afterwards.
What will the lawyer check before I sign anything?
Who really owns the property, whether there are any mortgages, enforcement proceedings or other liabilities, whether the land registry details are correct, whether there are any debts to the owners' association and whether the legal status matches what you are buying. For a specific property, the checks are expanded according to its type and history.
Do I need my own lawyer?
Yes. An independent lawyer who represents you, not the developer or seller. The lawyer checks ownership, debts, liens, permits, contracts and the legal status of the property before you commit to the purchase. We do not employ lawyers and do not receive commissions from them for recommendations. We will give you several options and you can choose for yourself.
What if the developer does not complete the project?
Every payment made before the building is completed must, by law, be covered by a bank guarantee issued in your name. Your lawyer will check the exact wording of the guarantee for your unit before any payment is sent and will tell you exactly what it covers.
Can I inherit the previous owner's debts?
Some debts and liabilities connected to the property may affect the new owner, so before the purchase, we check not only the seller but also the property itself. Among other things, the lawyer checks its status with the owners' association and obtains the relevant certificates before signing.
Four assumptions that cost buyers moneyEvery one of these is answered in full in the questions above. Together they are the four things Czech buyers most often get wrong before anybody has read a contract.
What buyers assumeWhat is actually true
- Every payment is protected
- The reservation is the one payment made outside the guarantee system. That is why it has to be small and why the contract setting the terms for getting it back is read before the money moves, not after.
- The developer takes the risk on an unfinished build
- Only if the paperwork is right. Every payment before the build is finished has to be covered by a bank guarantee issued in your name, and your lawyer checks the exact wording for your unit before anything is sent.
- A mortgage covers 70 to 80 percent
- Not for a non-resident paid in Czech crowns. Plan for around half of the value the bank itself sets, and note that the bank lends against its own valuation rather than against the price you agreed.
- No rental income means no Spanish tax
- There is still a filing. Modelo 210, the non-resident notional-income tax, applies to an empty property, and most owners find out late.
Can you let the property to tourists?
Not automatically. It depends on the specific property, the town and the community’s own rules, which is why it is checked before you reserve rather than discovered afterwards.Can I rent out the property to tourists for short stays?
Not automatically. It depends on the specific property, municipality, owners' association rules and current rules for tourist accommodation. That is why we check whether short-term renting is possible before the reservation if renting is one of the reasons why you are buying the property.
What does owning it cost you every year?
IBI, the community fee, refuse, insurance, utilities, and a Spanish tax filing even in a year when you never let the property out. The community fee is usually the item that explains why two similar apartments cost different amounts to own.What will I pay each year?
IBI, owners' association fees, waste charges, insurance, electricity and water, and for non-residents, tax obligations in Spain as well. The biggest difference between two similarly priced apartments is often made by the owners' association fees, so for a specific property, we show the actual annual costs instead of one universal figure.
Do I pay tax in Spain even if I do not rent out the property?
Yes. Modelo 210, tax on deemed income for non-residents. In Czech, it explains almost nothing, and most owners find this out too late.
What if I need to sell the property in two or three years?
You can sell it at any time. The question is at what price and how quickly. Properties with something that future buyers will also want sell again most easily: a good micro-location, a view, the right orientation, walkability or a high-quality development. That is why, when buying, we do not only consider whether you like the property today, but also who you will eventually sell it to. When selling as a non-resident, also expect costs and taxes related to the sale.
Will the property stay in the family?
Yes, and this can be prepared in advance. Spanish inheritance tax applies, but Andalusia offers generous relief for close family members. In your will, you can also choose for the inheritance to be governed by Czech law, and a short Spanish will can save your family months of paperwork.
Is buying better than renting, and is this the right coast for your budget?
If you come once a year for two weeks, renting is simpler. If you come several times a year, owning starts to make a different kind of sense, and below roughly 250 000 € for the property itself we will tell you Costa Blanca is probably the better answer.Will buying a property make me a Spanish tax resident?
No. Simply owning a property does not make you a Spanish tax resident. Tax residence is assessed according to your actual situation, including how much time you spend in Spain and where the centre of your economic and personal interests is. If you want to spend a larger part of the year here or move permanently, discuss your tax residence with an adviser before moving. It may affect how Spain assesses your income and assets outside Spain.
Is it better to buy or rent?
If you come once a year for two weeks and the property would otherwise stand empty for the rest of the year, renting may be simpler.But once you come here several times a year or spend a longer part of the year on the Costa del Sol, owning a property starts to make much more sense. You do not have to look for an available rental every time, deal with seasonal prices or move between different apartments. You simply arrive with a small suitcase, and everything else is already waiting for you at home.This is even more significant if you travel with a dog or children, or if you want to come for several weeks or months. Good longer-term rentals are not always easy to find, and in the high season they can be very expensive.And if you legally rent out the property when you are not using it, rental income can cover a significant part of the annual ownership costs. With a well-chosen property, you are not only paying for a place to visit on holiday, but owning a second home that can generate income for part of the year.That is why, with clients who want to come here regularly, we usually focus more on when buying will start to make sense than on whether it makes sense at all.
Costa del Sol or Costa Blanca?
It mainly depends on your budget and what you expect from Spain.Costa Blanca is generally cheaper, and with the same budget you can buy significantly more there. Costa del Sol is more expensive, but it offers a stronger year-round lifestyle, international infrastructure, Malaga airport, golf, schools, healthcare and a large international community.If you have less than approximately 250 000 € for the property itself, we would tell you directly that we would probably not focus on Costa del Sol. The choice at this price is very limited, and the same budget may make considerably more sense on Costa Blanca.From approximately 300 000 € onwards, real options start to appear on the Costa del Sol, but it still depends on the location, distance from the sea, condition of the property, and requirements for a view or renting.
What do we earn from your purchase?
The commission is paid by the developer or the seller and is already inside their price list, so a buyer pays us nothing extra. We do not employ the lawyers we recommend and we take no commission from them either.The longer answer lives on one page rather than in an accordion here, because these are the questions that decide whether you trust anything else on this site and they deserve more than four sentences.
Twenty minutes on the phone answers what a general FAQ cannot
Almost every question on this page has a different answer for a specific property in a specific town, and that is the answer you actually need. These are the same words we use on the call; the call is where they get applied to your property.Twenty minutes, no obligation, and you can bring a property you found somewhere else. If you already have a listing in front of you, send it over instead and you get the answer about that property rather than about property in general.