Spain is one of the most popular destinations for US expats, thanks to 300 days of sunshine each year and a laid-back culture. If you’re planning on moving to Spain, the first thing you’ll need to do is obtain a visa and get an NIE number.
Then it’s time to consider buying a property. Spain has a range of properties available, from high-rise apartments to luxury villas and rustic homes, but many people don’t realize that purchasing a home in Spain differs from the US.
In this guide, we’ll explore how the property buying processes differ, ensuring you can easily navigate the Spanish property market.
TL;DR: Buying a Property in the USA vs. Spain
| Stage | USA | Spain |
|---|---|---|
| Starting Point | Mortgage pre-approval from a lender; credit and affordability checks. | Obtain NIE number; secure mortgage from a Spanish bank (larger deposits for non-residents). |
| Property Search | Centralized MLS listings, open houses, and agent-assisted searches. | No central MLS; use multiple estate agents (inmobiliarias) and online portals. |
| Deposit | 1–3% of purchase price (earnest money) held in escrow. | €3,000–€6,000 reservation fee, followed by ~10% at Private Purchase Contract stage. |
| Legal Oversight | Escrow officer manages documents; lawyers optional but common. | Notary required; lawyer performs due diligence and debt checks. |
| Mortgage Approval Time | Few days to 2 weeks. | Up to 6 weeks for non-residents. |
| Closing Timeline | 30–60 days after offer accepted. | 60–90+ days after reservation. |
| Typical Taxes & Fees | Closing costs: 2–5% (varies by state). | Transfer Tax 6–10%, New Build VAT 10%, Stamp Duty, Legal Fees 1–2%. |
In the USA, the process is faster and more standardized. It typically begins with mortgage pre-approval, followed by property viewings, making an offer, entering into escrow, conducting inspections, and closing within 30 to 60 days.
In Spain, the process begins with obtaining an NIE number (for non-residents), securing financing (often requiring a larger deposit for non-residents), paying a reservation fee, conducting due diligence, signing a private purchase contract, and finalizing the sale at a notary’s office, which usually takes 60 to 90+ days (less if you already have a NIE and the cash of course).
Key differences:
- Legal oversight: The USA uses escrow officers, while Spain does notaries.
- Deposit: In the USA, it is 1–3% of the price, while in Spain, it is a fixed €3,000–€6,000 initially, then ~10%.
- Mortgage processing time: USA: days to two weeks; Spain: up to six weeks for non-residents.
- Costs: USA: 2–5% closing costs. Spain: 6–10% transfer tax plus other fees.
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The Property Buying Process in the USA
Buying a property in the USA can be complex, with competitive markets in cities like New York, Los Angeles, and San Francisco. Here’s how the process usually works.
Step 1: Pre-Approval
Most buyers in the US begin with a mortgage pre-approval application, where a lender assesses your credit rating, financial circumstances, current debts, and affordability.
They’ll then let you know how much you can afford, which makes it easier to look for homes in your price range.
Depending on the lender, the mortgage pre-approval stage can take a few days to two weeks.
Step 2: Viewing Properties
Once you secure a pre-approval, you can register with real estate agents to view suitable properties in the area. In many cases, the USA has open houses, where prospective buyers can view the home and decide if they’d like to make an offer.
Step 3: Making an Offer
Buyers will instruct their real estate agent to make an offer on the property, which is submitted in writing. The offer includes a proposed price, any contingencies such as financing and inspections, and the proposed closing date.
Once the seller receives an offer, they’ll either accept it, reject it, or make a counter-offer.
Step 4: Escrow
If the seller accepts your offer, you’ll need to pay a deposit of the purchase price (also known as earnest money). Usually, the deposit is between 1% and 3% of the agreed purchase price.
The money goes into an escrow account, where a third party holds it until the closing date.
Step 5: Inspections and Appraisals
Before the sale completes, you’ll have a chance to arrange a professional inspection and appraisal.
The inspection checks the property for safety hazards such as structural issues, while the appraisal lets the lender determine whether the property is worth the amount you’ll borrow.
If they agree to the loan, you’ll receive a final approval and can complete the necessary paperwork.
Step 6: Closing
On the closing date, you’ll sign any closing documents and pay between 2%-5% of the agreed purchase price. The property deed will then be recorded with the county, which transfers ownership to you.
The Property Buying Process in Spain
Buying a property in Spain works differently from the USA, but understanding the process is key to navigating it successfully. Here’s how it works.
Step 1: NIE Number and Financing
You can’t purchase a property in Spain without obtaining an NIE number, but the process is relatively straightforward. The next step is to procure a mortgage agreement from a Spanish bank.
However, if you’re not a resident of Spain, you’ll usually need a larger deposit. Most lenders ask for between 30% and 40% of the price, so it’s essential to plan ahead and make sure you can afford to buy a home.
Step 2: Searching for a Property
Unlike the USA, Spain doesn’t have a central MLS system, so it’s best to either search online for properties or use different estate agents (also known as inmobiliarias).
You’ll find websites highlighting the best luxury properties available in Mallorca, Ibiza, Valencia, and other popular Spanish regions. Once you find a property you like, you can make an offer.
Step 3: Reservation Contract
As with the US market, you’ll pay a deposit that secures and takes the property off the market. However, instead of paying a percentage of the property’s price, your deposit will usually be between €3,000 and €6,000.
Step 4: Due Diligence
Once you pay the reservation fee, your lawyer will perform due diligence by checking ownership through the Registro de la Propiedad (Land Registry). They’ll also look for mortgages and debts, as Spain attaches debts to properties – not individuals.
Step 5: Private Purchase Contract
The Private Purchase Contract (also known as the Contrato de Arras) confirms the agreed price, lists a completion date, and establishes which penalties will apply if either party withdraws from the transaction.
You’ll also pay around 10% of the purchase price during this stage.
Step 6: Completion
Both the seller and buyer meet at the notary’s office on completion day, where the notary will go through the document with you and oversee while you both sign it. You’ll then pay the agreed amount and will receive the keys.
The Key Differences Between Both Processes
As you can see, there are some key differences between the property buying process in the USA and Spain, but the most important variations to be aware of include legal roles, timelines, and costs.
Legal Roles
In the USA, the buyer and seller usually have separate real estate agents, while in Spain, agents are more likely to represent both parties.
Once you find a property in the USA and the offer is accepted, an escrow officer will manage the documentation, but all real estate transactions in Spain go through a notary.
Timelines
Spain’s real estate market usually moves at a slower pace when compared to the USA. For example, a mortgage approval in the USA can take a few days to a couple of weeks, but non-residents of Spain may have to wait up to six weeks.
The time from your offer being accepted to completing the purchase takes between 30 and 60 days in the USA, but waiting times in Spain can exceed 90 days.
Taxes and Other Costs
| Country | Deposit | Taxes | Other Fees |
| USA | 1-3% (Earnest Money) | Differs depending on the state and city. | Closing Costs – 2% to 5%. |
| Spain | €3,000 to €6,000 | Transfer Tax – 6 to 10%, New Build VAT (10%), and Stamp Duty. | Legal Fees – 1% to 2%. |
Use a property tax calculator to know exactly what you’re paying ⇒
How to Streamline the Property Buying Process in Spain
Purchasing a property is a complex process, no matter where you live. However, with the right support and forward planning, you can streamline your search and find the perfect home for your new life in Spain:
- Work With Experts: Use a real estate agent who understands the area you’re buying in, and find a mortgage broker who works with US expats.
- Factor in Extra Costs: When you purchase a property, you’ll need to factor in additional costs, including stamp duty and legal fees.
- Know Your Market: Properties in Mallorca, Ibiza, and other popular areas of Spain are in high demand. However, there’s always room for negotiation in Spain, so you could end up getting a better deal.
- Plan Ahead: If you’re moving to Spain from the US, finding accommodation while searching for a property is essential, as the process can be lengthy.
Read these 10 common mistakes when buying property in Spain and how to avoid them ⇒
Final Thoughts
Spain’s legal system can be more complex to navigate, but it also focuses on formalities and safeguards. You’ll also find that many properties in Spain are more affordable than those in large US cities.
Planning ahead and seeking support can relieve stress and ensure you find your dream home. Vista Collection offers a range of properties in Mallorca, including luxury houses, apartments, and villas.
Feel free to get in touch with an expert today to begin your property buying journey search.
FAQs
Is it worth buying a property in Spain?
Absolutely! If you want to move to Spain, buying a property ensures you’ll always have a home. However, many people also choose to purchase rental properties in Mallorca and other popular areas of Spain.
Private villas are popular alternatives to hotels, as they offer more privacy and flexibility. By renting out your home, you can generate a healthy income.
How long can you stay in Spain if you own a property?
US citizens who own property in Spain don’t have an automatic right to live there. You can stay for up to 90 days without a visa or residency, but applying for a visa means you’ll be able to move to Spain.
Is it better to buy or rent in Spain?
When you first move to Spain, renting can be beneficial as it gives you the opportunity to explore different areas and neighborhoods.
However, owning a home offers more flexibility, as you can decorate it and put a unique stamp on the interior. Also, if property prices increase you’ll make a profit.
Which is the best place to buy a property in Spain?
Spain has an array of beautiful cities, including Mallorca, Valencia, Madrid, and Barcelona. It depends on the type of lifestyle you want and whether you plan to work in Spain. Visiting different cities and meeting locals can help you get a feel for the unique culture each offers.
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