Step-by-Step Guide to Buying Property in Madrid as a Foreigner

Buying property in Madrid as a foreigner is entirely legal — but doing it right requires expert guidance. At Borderless Lawyers, we help international buyers navigate the legal process from start to finish, whether you’re in Spain or buying remotely.

Here’s a step-by-step guide to purchasing real estate in Madrid with confidence.

---

✅ Step 1: Hire an Independent Property Lawyer

The first — and most important — step is to appoint a lawyer who represents only you, not the seller or estate agent.

At Borderless Lawyers, we:

• Handle all legal due diligence

• Draft and review contracts

• Represent you at the notary

• Ensure safe remote purchasing via Power of Attorney

• Communicate in your language (English, French, German, and more)

---

🆔 Step 2: Get Your NIE (Foreigner Tax Number)

The NIE (Número de Identificación de Extranjero) is mandatory to:

• Sign the public deed

• Pay taxes

• Register your property

We can obtain your NIE on your behalf through Power of Attorney — so you don’t need to travel to Spain.

---

📄 Step 3: Sign the Contrato de Arras

Once you select a property, the seller will ask you to sign a Contrato de Arras and pay a 10% deposit.

This is legally binding. If done wrong, you could lose your money.

Borderless Lawyers reviews or drafts this contract to:

• Add protective clauses

• Secure your rights

• Avoid unfair penalties

---

🔍 Step 4: Full Legal Due Diligence

Before you move forward, our legal team verifies:

• The seller’s ownership and title

• That the property is debt-free

• That all urban planning is legal

• That occupancy and tax records are clear

This prevents surprises like illegal construction or hidden mortgages.

---

🏦 Step 5: Prepare for Notary Day

We take care of:

• Coordinating final payments

• Preparing the notarial deed

• Ensuring all taxes are pre-filed

• Representing you if you’re abroad

You can choose to attend or sign everything remotely via Power of Attorney.

---

✍️ Step 6: Sign the Public Deed

At the notary’s office:

• The Escritura Pública is signed

• Final payments are made

• The sale becomes official

With Borderless Lawyers, this can be handled entirely on your behalf.

---

💶 Step 7: Pay All Required Taxes

Depending on the type of property:

• Resale: 6–7% ITP (Transfer Tax)

• New-build: 10% VAT + 1.25% AJD (Stamp Duty)

We calculate, file, and pay all your taxes correctly and on time.

---

🏛️ Step 8: Register the Property

We handle:

• Land Registry filing

• Cadastre updates

• Local council notifications

You receive a final confirmation that your ownership is legally registered.

---

🔌 Step 9: Post-Purchase Support

We also help you:

• Transfer utilities

• Set up IBI and garbage taxes

• Draft a Spanish will

• Apply for rental or tourist licenses, if needed

---

📋 Timeline Summary

---

💬 Final Word

Buying property in Madrid is a smart investment — but it requires careful legal management.

At Borderless Lawyers, we specialize in:

• Helping foreigners buy property in Spain

• Handling everything remotely with POA

• Delivering full legal protection in your language

📞 Contact us today to get a quote or legal review before signing anything in Madrid.