Madrid is a top destination for international property buyers — but navigating Spanish real estate law can be risky without the right legal guidance.
This 10-step legal checklist will help you buy safely, avoid surprises, and protect your investment.
✅ 1. Apply for an NIE (Foreigner ID Number)
Before doing anything, get your NIE (Número de Identificación de Extranjero). It’s required to:
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Buy property
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Pay taxes
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Open a bank account
📌 Read our full NIE guide for Madrid →
✅ 2. Open a Spanish Bank Account
You’ll need this for:
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Paying the deposit
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Final notary payments
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Taxes and utilities
Foreigners can open accounts with a valid NIE and passport.
✅ 3. Hire a Property Lawyer (Not Your Agent)
Agents represent sellers. You need an independent lawyer to:
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Review contracts
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Conduct due diligence
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Represent you at the notary
📌 Why choose a lawyer in Madrid →
✅ 4. Review All Contracts Before Signing
Never sign an arras (deposit) or private contract without legal review. These documents are binding and often drafted in Spanish legal terms.
📌 More on Madrid arras contracts →
✅ 5. Conduct Full Due Diligence
Check for:
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Ownership and liens
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Urban planning compliance
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Outstanding taxes or HOA debts
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Valid licenses and habitability status
✅ 6. Verify Taxes and Costs in Advance
Foreign buyers must pay:
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Transfer tax (ITP) or VAT
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Notary and registry fees
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Plusvalía Municipal (in some cases)
We help you calculate a complete cost breakdown before closing.
✅ 7. Get a Power of Attorney (Optional but Useful)
If you can’t travel to Madrid, grant POA to a trusted lawyer who can:
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Sign contracts
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Pay taxes
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Register the deed
📌 How POA works for Madrid buyers →
✅ 8. Sign the Escritura Pública (Public Deed)
At the notary, both parties (or legal reps) sign the public deed of sale. Funds must be paid by banker’s draft or certified method.
We ensure all formalities are correct and translated if needed.
✅ 9. Pay Taxes and Register the Property
After signing, we:
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File the property taxes
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Register the deed with the Madrid Land Registry
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Update ownership with the tax office
All of this must be done within a strict legal timeframe.
✅ 10. Store All Documents Securely
We deliver:
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Signed deed (escritura)
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Tax receipts
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Registry confirmation
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POA termination (if applicable)
These documents are essential for resale, taxes, or inheritance planning.
📌 Bonus: Ask About Rental or Tourist Licensing (If Applicable)
If you plan to rent out the property:
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Check HOA rules
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Ask about tourist license restrictions in Madrid
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Understand the tax implications for non-residents
We can advise you based on your ownership goals.
🛡️ Need Help Navigating Madrid’s Property Law?
Buying a home in Madrid is exciting — but risky without a legal expert. At Borderless Lawyers, we guide foreign buyers through the entire process, from NIE to deed registration.