Foreigners buy a large share of the homes sold on the southern Costa Blanca, and the Spanish system treats them almost exactly like local buyers. There is no nationality restriction, no minimum investment and no permit needed to own a flat in Torrevieja or a villa in Orihuela Costa. What trips people up is the order of the steps and the paperwork behind each one. This guide walks you through the purchase the way it actually happens on the ground in the Vega Baja: from getting your NIE to seeing your name in the Land Registry, with the checks a careful buyer makes along the way.
Step 1: get your NIE before you fall in love with a property
The NIE (Número de Identidad de Extranjero) is your tax identification number in Spain. You cannot sign a deed at the notary, pay the purchase tax, open most bank accounts or connect utilities without it. It is free of residence implications: having an NIE does not make you a resident, it only identifies you.
You can apply in Spain at a National Police foreigners' office with an appointment (cita previa), at a Spanish consulate in your home country, or through a lawyer holding your power of attorney. Waiting times for appointments on the Costa Blanca vary a lot during the year, so start early, ideally before your viewing trip. The application uses form EX-15 and a small government fee paid with form 790 code 012.
If you are buying as a couple and both names will go on the deeds, each of you needs your own NIE.
Step 2: open a Spanish bank account and plan the money transfer
A Spanish account is not legally compulsory to buy, but in practice it makes everything easier: paying the deposit, the taxes, the notary, and afterwards the direct debits for IBI (council tax), community fees, electricity and water. Non-residents open a non-resident account; the bank will ask for your passport, NIE, proof of address and proof of the source of your funds under anti-money-laundering rules.
Plan the currency side early if you earn in pounds, Swiss francs, Swedish kronor or any other non-euro currency. A few percentage points of exchange movement between reservation and completion can matter more than the price negotiation. Keep documentary evidence of where the money comes from (sale of a previous home, savings statements): Spanish notaries and banks are obliged to ask, and the means of payment must be identified in the deed.
Step 3: hire an independent lawyer and let them do the due diligence
In Spain the notary certifies the deed but does not act for you, and the estate agent is paid on completion. Your own lawyer (abogado), registered with a Bar Association and independent of the seller and the agency, is the person who protects your interests. Fees on the Costa Blanca are commonly around 1% of the price plus VAT, sometimes with a minimum fee; agree it in writing.
Before you commit serious money, your lawyer should check at least:
- Nota simple from the Land Registry: who owns the property and whether there are mortgages, embargoes or other charges.
- Catastro data: that the registered description and the reality (built area, pool, extensions) match.
- Town planning: that extensions, closed terraces or solariums were legalised; illegal works are common on older resale homes.
- Debts: IBI receipts and a certificate from the community of owners showing fees are paid up to date.
- Energy performance certificate and, where applicable, the occupation licence or equivalent document for utility contracts.
Many buyers sign a power of attorney so the lawyer can also get the NIE, open the account, pay taxes and sign at the notary if they cannot travel.
Step 4: the reservation agreement
Once you have agreed a price, the agency will usually propose a reservation document and a deposit, typically a few thousand euros, to take the property off the market for a short period while your lawyer does the checks. Read it carefully: the key question is whether the reservation is refundable if the due diligence reveals a problem. A well-drafted reservation says so explicitly and says who holds the money.
Do not pay a reservation straight into a private individual's account without a written document naming the property, the price, the parties and the conditions.
Step 5: the private contract with arras
The main private contract on resale purchases in Spain is usually a contrato de arras penitenciales, regulated by article 1454 of the Civil Code. The buyer pays a deposit, customarily around 10% of the price (less the reservation already paid). The effect is simple and strict: if the buyer walks away, he loses the deposit; if the seller walks away, he must return double.
The contract fixes the price, the deadline for signing the deed, what furniture is included, who pays which costs, and what happens with the existing mortgage, which the seller usually cancels at the notary with part of your payment. If you will need a mortgage, ask your lawyer to include a clause linking the contract to its approval, or at least give yourself enough time to obtain one.
Step 6: signing the deed at the notary
Completion takes place at a notary's office, often in Torrevieja or Orihuela. Seller and buyer (or their attorneys) sign the escritura pública de compraventa, the balance is paid, and keys change hands. Payment is made by bank cheque or bank transfer, and the notary records the means of payment. Unless you speak Spanish well, the notary must be satisfied that you understand the deed, so bring a sworn translator or rely on a bilingual notary where available.
Two details that surprise foreign buyers:
- If the seller is a non-resident, the buyer must withhold 3% of the price and pay it to the Spanish tax agency on the seller's behalf. Your lawyer handles this at completion.
- Purchase tax is due within one month of signing: transfer tax (ITP) on resale homes, or VAT plus stamp duty on new builds bought from a developer. Budget for costs of roughly 11 to 14% on top of the price; our team can prepare a detailed estimate for a specific property.
Step 7: Land Registry, utilities and life after completion
After signing, the notary sends a copy of the deed to the Land Registry. Once the tax is paid, the registrar inscribes you as the new owner, usually within a few weeks. Only then are you fully protected against third parties. Your lawyer or a gestoría should also update the Catastro and change utilities, IBI and community fees into your name.
As a non-resident owner you will file an annual non-resident income tax return even if you never rent the property. If you plan to rent to holidaymakers, check the tourist licence rules and the community's position before buying, not after.
A note on residence: Spain's golden visa, which granted residence to non-EU buyers investing 500,000 euros or more, was abolished for new applications on 3 April 2025. Buying a home no longer leads to a residence permit on its own; non-EU buyers who want to live here need another route, such as the non-lucrative visa.
How long it takes and where to start looking
A cash purchase of a resale home typically takes six to ten weeks from reservation to deed; with a mortgage, allow more. Off-plan purchases run to the construction timetable. Start by narrowing down the area: Torrevieja offers year-round town life and lower entry prices, while Orihuela Costa, with La Zenia, Cabo Roig and Villamartín, is quieter and more resort-like. Browse our properties for sale and shortlist a few homes before your trip, so your viewing days are productive.