Buying Property in Spain as an Australian – Legal Advice

Many Australians dream of owning a home in Spain — whether for retirement, vacation, or investment. Fortunately, Spain allows Australians to buy property freely, even without a visa or residency.

However, the process is very different from what you may be used to in Australia. From legal due diligence and contract review to tax implications and inheritance rules, buying property in Spain requires proper legal protection.

This guide explains how Australians can buy property in Spain safely, what to avoid, and how Borderless Lawyers helps you from offer to registration.


✅ Can Australians legally buy property in Spain?

Yes. There are no restrictions on Australians purchasing real estate in Spain — whether it’s:

  • Urban apartments or villas

  • Rural homes or farmland

  • Investment properties or rentals

  • Off-plan new developments

📌 Residency is not required to buy, but it is required if you plan to live in the property long-term (see Article 1).


📝 Legal Steps to Buying Property in Spain

1. Get an NIE (Foreigner Identification Number)

Required for any legal, tax, or property transaction in Spain.
➡️ You can apply from Australia or authorize us to obtain it for you.

2. Open a Spanish bank account

All payments (purchase price, taxes, utilities) must go through a Spanish bank.

3. Reserve the property

Once you agree on the price, you’ll usually sign a Contrato de Arras (reservation contract) and pay a 5–10% deposit.

4. Legal due diligence

Your lawyer must check:

  • Property title and registry

  • Debts or mortgages

  • Zoning and planning permissions

  • Whether it’s legal to rent or renovate

5. Sign the purchase deed (Escritura Pública)

Executed before a Spanish notary. Your lawyer can sign for you via power of attorney.

6. Register the property

The new ownership must be registered at the Land Registry and Property Tax Office.


💸 What costs should Australians expect?

Item Typical Cost
Property transfer tax (resale) 6–10%
VAT + Stamp Duty (new build) 10% + 1–1.5%
Notary & land registry fees 1–2%
Legal fees (conveyancing) 1–1.5%
Bank & mortgage fees Varies
Currency exchange loss 1–2% (if unmanaged)

💡 We help you lock in exchange rates and avoid hidden charges.


📑 Documents Needed to Buy Property

Document Provided by
Valid Australian passport Buyer
NIE number Buyer
Spanish bank account Buyer
Proof of funds or mortgage offer Buyer
Nota Simple (title extract) Lawyer/Seller
Energy performance certificate Seller
Proof of no debt (IBI, utilities) Seller

📌 All documents should be translated and properly registered.


⚠️ Common Legal Risks to Avoid

❌ Risk Why It Matters
Skipping legal due diligence May buy property with debts or issues
Signing contracts without a lawyer Terms may be biased or unenforceable
Buying unregistered or illegal builds Property may be unsellable or fined
Not planning for inheritance taxes Can cause problems for heirs
Transferring funds without controls Risk of fraud or delays

Our property lawyers ensure every contract and document is 100% legal and risk-free.


🏘️ Can property ownership help with Spanish residency?

Not directly. Spain eliminated the Golden Visa (property-based residency). However:

  • Property ownership can strengthen your non-lucrative visa application

  • Rental income may support your digital nomad visa

  • Owning property shows financial stability to immigration authorities

💡 We advise Australians on combining property purchase with visa strategy (see Article 2).


🧾 Ongoing Ownership Obligations

As an Australian property owner in Spain, you must comply with:

Obligation Details
Annual municipal property tax (IBI) Based on cadastral value
Income tax on rental income 19–24% for non-residents
Wealth tax (only for high-value) May apply if net assets > €700,000
Utility, garbage & community fees Vary by region and property type

📌 We offer full tax compliance and reporting services.


👨‍⚖️ How Borderless Lawyers Helps Australians Buy Property in Spain

✔️ We check property legality, zoning, and debts
✔️ Draft and negotiate all contracts (in English & Spanish)
✔️ Represent you by power of attorney to avoid travel
✔️ Coordinate with notaries, banks, and sellers
✔️ Ensure full tax compliance (transfer tax, IBI, rental tax)
✔️ Combine with visa planning for long-term residence

Everything managed remotely with expert Australian-friendly support.


📞 Call to Action

Thinking of buying a property in Spain as an Australian?
Let our legal team protect your investment — from first offer to final registration.

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