What buying a home in Madrid costs, beyond the price
Tax, notary, Land Registry, gestoría and fees: everything to add to the price, with a calculator to run your own numbers.
Notes on buying well in Madrid.
Short guides for anyone buying a home in Madrid from another country: how the process works, what it costs beyond the price and how to choose a neighbourhood.
01 On the cover
Buying in Madrid from abroad: the process, step by step
You can buy without being resident, and without travelling to sign. What changes is the order.
- 01Your NIE and a Spanish bank account
- 02Signing from abroad: power of attorney
- 03The reservation and the arras contract
- 04What is checked before you sign
- 05Signing before the notary
- 06Taxes and registration
03 Glossary
Words you will hear
Buying in Spain comes with its own vocabulary. These are the words that will come up in every conversation, most of them Spanish, each explained in a few lines.
- Arrasn. pl.
The deposit a buyer pays on signing the private contract that comes before the deed. With arras penitenciales, if the buyer pulls out, they lose it; if the seller pulls out, they pay it back twice over.
The process- Comunidad de propietariosn.
The owners of a building, acting together. Each flat pays a fee towards shared costs and any works that are approved.
The costs- Due diligencen., from English
The legal, technical, commercial and financial review of a property before committing to buy it.
The process- Escritura públican.
The deed of sale, signed before a notary. On signing, the rest of the price is paid and the keys are handed over.
The process- IBIn.
Impuesto sobre Bienes Inmuebles, the annual property tax charged by the city council to the owner.
The costs- ITPn.
Impuesto sobre Transmisiones Patrimoniales, the transfer tax on resale homes. In the Community of Madrid the standard rate is 6%.
The costs- IVA y AJDn.
The taxes on a new-build home bought from the developer: VAT (IVA) at 10% and stamp duty (Actos Jurídicos Documentados).
The costs- NIEn.
Número de Identidad de Extranjero, the foreigner’s identity number. Essential for buying and paying tax in Spain. It does not grant residence.
The process- Nota simplen.
An extract from the Land Registry showing the owner, the description and any charges on a property. Read it before signing anything.
The process- Poder notarialn.
A power of attorney: the document that authorises someone else to sign on your behalf. It lets you buy without travelling to Madrid.
The process- Registro de la Propiedadn.
The Land Registry, where the purchase is recorded in your name. Registration protects your title against third parties.
The process- Valor de referencian.
The reference value the Cadastre assigns to each property. If it is higher than the price in the deed, ITP is calculated on it.
The costs
04 Private consultation
Do you have a specific question about your purchase?
Tell us about your situation and we will tell you where to start.
In Madrid it is