If you’re a foreigner planning to buy real estate in Spain’s capital, understanding the legal process for buying property in Madrid is crucial. Unlike in some countries, Spanish property law is highly structured — and every step must be completed in order to avoid legal and financial risks.
At Borderless Lawyers, we guide international buyers through every legal stage — from offer to registration — with full protection.
🧑⚖️ Step 1: Hire an Independent Spanish Property Lawyer
Before doing anything, appoint an independent lawyer — not the seller’s agent or lawyer.
✅ At Borderless Lawyers, we act exclusively on your behalf, ensuring:
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Legal due diligence
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Secure contract review
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Tax and title protection
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Optional remote signing via POA
🆔 Step 2: Obtain Your NIE Number
The NIE (Foreigner ID number) is required for:
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Signing contracts
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Opening a Spanish bank account
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Paying property taxes
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Registering your name in official records
We obtain this for you — remotely or in person.
✍️ Step 3: Sign Reservation Contract (Optional)
Some agents request a reservation agreement to remove the listing while paperwork is prepared.
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Typically involves a small fee (€1,000–€5,000)
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Not legally binding in the same way as the arras
✅ Always review this contract with your lawyer.
📑 Step 4: Draft and Sign the Contrato de Arras
This is the binding deposit agreement:
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You pay a 10% deposit
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Both parties agree to complete the sale
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Penalties apply for breach (buyer loses deposit, seller pays double)
Borderless Lawyers drafts this contract to include custom protection clauses.
🔍 Step 5: Legal Due Diligence
Before proceeding, we:
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Verify seller’s ownership
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Check for unpaid debts or charges
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Confirm zoning and urban legality
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Review taxes, licenses, and occupancy permits
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Compare property description with Land Registry and Cadastre
This prevents serious legal problems post-purchase.
🏦 Step 6: Prepare Funds and Final Documents
We help coordinate:
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Payment of the final balance
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Foreign exchange transfers (if needed)
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Tax forecasts and filing
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Mortgage documentation, if financing is involved
We also prepare the public deed for notary signature.
🖋️ Step 7: Sign the Deed at the Notary
This is when the property officially changes hands:
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Known as the Escritura Pública de Compraventa
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The notary certifies the deal
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Payment is made
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The keys are handed over
📌 We can attend and sign on your behalf via Power of Attorney.
💶 Step 8: Pay Taxes and Fees
Your lawyer will pay:
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Transfer tax (ITP) for resales (usually 6–7%)
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VAT (IVA) + Stamp Duty (AJD) if it’s a new-build
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Notary and Land Registry fees (usually 1–2%)
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Other minor administrative costs
We calculate and file all taxes on your behalf.
🏛️ Step 9: Register the Property
Once the deed is signed:
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We file it with the Land Registry (Registro de la Propiedad)
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We notify the Cadastre
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We assist with local tax setup (IBI, garbage tax)
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We ensure all documents are recorded in your name
🗂️ Timeline Overview
| Step | Approximate Time |
|---|---|
| NIE + POA | 1–3 weeks |
| Due diligence + arras | 1–2 weeks |
| Notary and signing | 30–60 days total |
| Tax payment + registration | 2–6 weeks post-signing |
💬 Final Word
The legal process for buying property in Madrid is safe and efficient — if you follow the correct legal steps. Skipping due diligence, signing early, or failing to register properly can cost you thousands.
At Borderless Lawyers, we provide:
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Full-service legal representation
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Remote property purchases via POA
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Multilingual client support
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Fixed-fee packages with no surprises
📞 Contact us today to begin your property purchase in Madrid with complete legal peace of mind.