In Spain, buying property without a mortgage is uncommon, but it remains a real option for those with sufficient funds. This approach allows buyers to avoid loan interest and bank fees, though it requires a careful approach to closing the deal. In 2025, interest in purchasing apartments and houses outright has grown significantly, especially among foreign buyers and those who prefer to avoid long-term commitments.
Prospective property owners who choose to buy without a mortgage face several formalities that cannot be overlooked. It’s important not only to prepare the necessary documents, but also to ensure the legal status of the property to avoid unpleasant surprises after the contract is signed. We’ll explain how the purchase process works, which steps are essential, and what to do if the transaction amount exceeds the cash limit.
First steps: property inspection and document preparation
Before starting the transaction process, buyers must request a so-called ‘nota simple’ from the land registry—a property extract from the Real Estate Registry. This document confirms that the seller legally owns the property and that there are no liens, arrests, or debts on the apartment or house. Without this statement, it’s not worth the risk: even if the seller seems reliable, legal issues can turn into major problems.
The next step is to check for any unpaid taxes and utility bills. The buyer must ensure that the seller has fully paid the property tax (IBI) and has no outstanding debts to the homeowners’ association. Otherwise, these liabilities could be transferred to the new owner. To confirm this, you’ll need a payment receipt and a certificate from the management company.
Contracts, payments, and the notary’s role
In Spain, it is common to sign a preliminary agreement—a deposit contract (arras). While not mandatory, it is often used to formalize both parties’ intentions and secure the property. The deposit is typically 10% of the property’s price. If the buyer backs out, the money is not returned. If the seller withdraws from the deal, they must return double the deposit.
The main purchase contract is signed at the notary’s office. At this stage, the final payment is made: the money is handed over to the seller, and the buyer receives the keys along with a notarized copy of the contract. It’s important to prepare personal identification documents (DNI or NIE) in advance, as well as proof of the origin of funds for large transactions. The notary is required to verify the legality of the deal and the source of funds, especially for amounts exceeding €100,000.
Payment and registration: details and restrictions
While the law formally permits paying for real estate in cash, there are strict limits. If both parties are individuals, the maximum cash payment allowed is €99,999.99. Exceeding this threshold requires completing a special form (Modelo S1), and the notary may request additional proof. In most cases, bank transfers or checks are preferred to avoid suspicions of money laundering.
After signing the contract, the buyer is required to pay the property transfer tax (Impuesto sobre Transmisiones Patrimoniales) and register ownership with the Registry. Only then is the transaction considered complete, and the new owner acquires full rights to the property. Don’t forget about notary and registrar fees—these costs are the buyer’s responsibility.
Professional support: when you can’t do without an expert
Even if the buyer feels confident, consulting with a lawyer or real estate agent can help avoid mistakes. A specialist will check all the documents, ensure the transaction is clean, and advise on the correct way to make payments. This is especially important for foreigners unfamiliar with Spanish law and the specifics of the local market.
In some cases, a professional can uncover hidden issues such as unauthorized renovations, unpaid utility bills, or sales restrictions. Expert services typically cost a small percentage of the transaction amount, but this expense is well worth the peace of mind and confidence in the outcome.
If you didn’t know, in Spain notarios (notaries) play a key role in real estate transactions. They certify purchase agreements, ensure the legality of operations, and oversee compliance with all formalities. Without their involvement, transferring property rights cannot be registered. There are more than 3,000 notary offices in the country, each required to adhere to strict standards of transparency and transaction security. For buyers, this is an extra guarantee that their property purchase will proceed without unpleasant surprises.
