A deal from start to finish in Spain

A Spanish sale passes through many hands: you, two lawyers, often a bank, a notary, the tax offices and the Land Registry. Your value is knowing the order, keeping everyone on time, and making sure nobody is surprised by a tax bill. This lesson follows a resale and an off-plan sale, then works through one deal in euros.

Who does what

• You, the agent: mandate, marketing, viewings, offer, coordination.
• The buyer’s lawyer: independent checks before any deposit, contracts, taxes. The buyer’s lawyer works for the buyer only.
• The notary: a neutral public official who checks identity, payment and legality, and authorises the deed (escritura).
• The Land Registry (Registro de la Propiedad): records the new owner, which makes the purchase effective against third parties.
• The tax offices: the region collects ITP or AJD, the town hall collects plusvalía, the state Tax Agency collects income taxes.
• The developer: on off-plan, sells the home and must guarantee the buyer’s advance payments.

A resale, step by step

1. Mandate. Signed nota de encargo with the seller (lesson 4).
2. Offer and reservation. A small sum takes the home off the market while the buyer’s lawyer checks it.
3. Checks. The lawyer gets the nota simple from the Land Registry (owner, description, mortgages and other charges), checks the Catastro, licences, community fee debts and the latest IBI receipt.
4. Arras contract. A private contract with a deposit, often around 10% of the price (Your Overseas Home). With arras penitenciales, a buyer who walks away loses the deposit and a seller who walks away pays back double. If the contract does not say which type it is, the law presumes confirmatory arras, where the injured party can demand completion or termination plus damages (Legálitas). Make sure the type is written down.
5. Deed before the notary. The balance is paid, usually by bank cheque or transfer, and keys are handed over.
6. Taxes and registration. The buyer pays the transfer tax, then the deed is registered. Legálitas notes registration only happens once the taxes are paid.

Who pays which tax

Buyer of a resale home: ITP, set by each region:

• Andalusia: 7% (Interforo).
• Valencian Community: 9% for deeds from 1 June 2026, 11% on the whole price above €1 million (TaxDown).
• Catalonia: 10% up to €600,000, rising to 13% above €1.5 million (Osborne Clarke).

Buyer of a new home from the developer: 10% VAT plus AJD stamp duty on the deed: 1.2% in Andalusia, 1.4% in the Valencian Community from June 2026 (Guía Fiscal).

Notary and registry follow official tariffs. Interforo gives rough ranges of €500 to €1,000 for the notary and €400 to €650 for the registry.

The seller pays:

• Plusvalía municipal, the town hall tax on the rise in land value. If there was no real gain, it is not due, but the seller must prove it with both deeds (Guía Fiscal). When the seller is a non-resident individual, the law makes the buyer the substitute taxpayer (Local Finance Law, article 106), so the buyer’s lawyer usually holds back that amount.
• Income tax on the gain. When the seller is non-resident, the buyer must withhold 3% of the price and pay it to the Tax Agency on form 211 within one month.
• Your agency’s fee, plus 21% VAT, as agreed in the mandate.

Worked example: a resale in Málaga

A British seller, not resident in Spain, sells a flat in Málaga for €350,000. The mandate says 5% plus VAT. The rates come from the sources above. The reservation amount is an example.

Item	Calculation	Amount
Reservation (example)	Agreed between the parties	€5,000
Arras at 10% (includes reservation)	350,000 x 10%	€35,000
Buyer’s ITP, Andalusia	350,000 x 7%	€24,500
Buyer’s notary and registry	Interforo ranges	about €900 to €1,650
3% withheld for the seller’s tax	350,000 x 3%	€10,500
Agency fee	350,000 x 5%	€17,500
VAT on the fee	17,500 x 21%	€3,675

At the deed, the seller receives the price minus the €10,500 withholding, minus any plusvalía held back, minus the fee of €21,175 if it is paid from the proceeds. Show the seller this net figure early. Nobody likes surprises at the notary.

An off-plan sale, step by step

1. Check the building licence. The duty to guarantee buyers’ money starts when the licence is granted. No licence, no payment.
2. Reservation, then the private purchase contract with the first instalment.
3. Individual guarantee. Under the first additional provision of Law 38/1999, the developer must guarantee all advances plus legal interest with a bank guarantee or insurance, and the money must go into a special account for that development.
4. Stage payments. Pineapple Homes describes a typical Costa del Sol pattern of about 20%, sometimes 30%, during construction. 10% VAT is charged on each stage.
5. Completion. Insist on the first occupation licence and a snagging walk before the deed.
6. Deed, AJD and registration, with the balance often paid by mortgage.

If the developer does not finish on time, the Banco de España report explains that the buyer sends a formal demand, and if the developer does not pay within 30 days, can claim against the bank or insurer.

Tax rates change by region and date, so check the official source before you act. Practise with Spain money and Spain off-plan training, and read buying property in Spain as a foreigner and off-plan in Spain.

This lesson is general information, not legal or tax advice.