All important procedures require certain paperwork and buying a house in Spain is no exception. The guidelines here presented refer to the steps one should follow throughout the process.

First, before signing the title deed, one must acquire the NIE (foreigner’s tax identification number) which is a legal document issued by the National Police and is essential to pay taxes. Then, mortgages or other credits should be applied for, if needed. It is required to check for liens against your potential property at the Property Register – as those are very inconvenient –, and to ensure payments regarding council taxes, Homeowners’ Association and outstanding debts are up-to-date.

Upon the signature of the title deed, it is necessary to present a valid passport, the NIE again, a receipt of the payments required and a bank
certification of the origin of the funds if one is a foreign non-resident (European Citizens included). Apart from this, the seller must present a
certificate from the Homeowners’ Association, as well as the last receipt of payment of the land value tax (Impuesto sobre Bienes Inmuebles, IBI).

Finally, the title deed should be withdrawn from the Public Notary  and registered in the Property Land Register. Taxes should be paid within 30 days of signing the title deed. One must not forget to notify the change of ownership to the Cadastre and changing all the bills like electricity, water, etc.

Lawyers are optional, but, if they are requested, they get 1% of the purchase price plus the VAT.

The costs of the notary and of the registries differ; specifically, the notary gets 0.25% of the purchase price (excluding the mortgage), while the
registries obtain 65% of the notary fees.

Further information:

https://www.gov.uk/how-to-buy-property-in-spain

http://www.wikihow.com/Buy-Property-in-Spain

Related Articles:

http://www.balearic-properties.com/blog/2013/07/about-buying-property-in-mallorca/