Buying property in Ibiza: the step-by-step legal guide

Step 1: NIE, bank and lawyer

Each buyer needs an NIE, the foreigner's tax identification number. A Spanish bank account is not mandatory but makes taxes and bills easier. Choose an independent lawyer early, because the first document you sign, the reservation, can commit money within days. See NIE and power of attorney.

Step 2: reservation and first checks

When the price is agreed, the agent usually asks for a reservation fee. Before paying, your lawyer should obtain the Land Registry extract to confirm the owner and any charges, and make sure the fee is refundable if the checks fail.

Step 3: legal due diligence

Check	Why it matters in Ibiza
Licences for every building	Pools and annexes without licence are common
Land classification	Rustic land restricts extensions and legalisation
Coastal Law	Many sea-view villas are near the public domain
Water and septic system	Many fincas rely on wells and cisterns
Rental licence	Apartments cannot be let to tourists; villas need a licence
Debts and community	IBI and community debts can follow the property

See legal due diligence in Ibiza and buying a villa or finca.

Step 4: the arras contract

The arras contract is the binding private contract. You pay a deposit, usually around 10%; if you withdraw without a contractual reason you lose it, and if the seller withdraws they usually return double. Your lawyer negotiates the conditions, dates and retentions. See arras contract review.

Step 5: finance

If you need a mortgage, Spanish banks lend to non-residents, usually with a lower loan-to-value. The law requires a free advice session with the notary before signing the loan. Mortgages are the most common cause of delay.

Step 6: completion at the notary

Your lawyer agrees the draft deed with the notary, checks the registry on the day and prepares the payments. You or your representative sign, the price is paid and the keys are handed over.

Step 7: taxes and registration

The transfer tax (or VAT and stamp duty for new builds) is paid within the legal deadline, and the deed is presented at the Land Registry. If the seller is non-resident, you must withhold 3% of the price for the tax office. See purchase costs and taxes in Ibiza.

How long it takes

A resale purchase usually takes six to ten weeks from reservation to completion, more for fincas with complex planning. Ibiza.law is the Ibiza practice of Castell.law; see our property lawyer service.