First-Time Buying Abroad? Your Complete Checklist for Spain or Portugal

Before You Start: The Mindset Shift

Buying property abroad for the first time is one of the most exciting — and most daunting — financial decisions you will make. The process in Spain or Portugal is fundamentally different from buying in the UK. There is no equivalent of Rightmove's seamless system, no standardised Law Society conveyancing protocol, and no assumption that things will move at the pace you expect. Legal systems differ. Language barriers are real. Timelines are unpredictable.

None of this should stop you. Hundreds of thousands of UK nationals own property in Spain and Portugal, and the vast majority had a straightforward experience. But the ones who had problems almost always share one thing in common: they rushed, skipped due diligence, or relied on the wrong people.

This guide is your checklist — every step, every decision point, every trap to avoid. Print it out, tick things off, and do not skip steps because someone tells you "it's fine, everyone does it this way."

Step 1: Define Your Budget (Including Hidden Costs)

Most first-time overseas buyers underestimate the total cost by 15-25%. The purchase price is just the starting point. Here is what you actually need to budget for:

Purchase Costs

Cost	Spain	Portugal
Property price	Your budget	Your budget
Transfer tax (resale property)	7-10% (varies by region; 7% in Andalusia)	0-7.5% (IMT, sliding scale based on price)
VAT (new build only)	10% IVA	6% IVA
Stamp duty	1-1.5% AJD (new build only)	0.8% Imposto de Selo
Notary fees	€600-€1,200	€500-€1,000
Land Registry	€400-€700	€250-€500
Legal fees (lawyer)	1-1.5% of price (min €1,500)	1-1.5% of price (min €1,500)
Mortgage arrangement (if applicable)	0.5-1% of loan + valuation (€300-€500)	Similar
Currency exchange costs	0.3-1.5% of total transferred	0.3-1.5% of total transferred

Rule of thumb: Budget an additional 10-13% on top of the purchase price for a resale property in Spain, or 8-12% in Portugal. For new builds, budget 12-15% (Spain) or 8-10% (Portugal). Use the MUNDO cost calculator for a personalised estimate.

Ongoing Annual Costs

Cost	Spain (typical)	Portugal (typical)
Property tax (IBI / IMI)	€400-€1,500/year	€200-€1,200/year
Community fees (apartments)	€600-€3,600/year	€300-€2,400/year
Home insurance	€200-€600/year	€150-€500/year
Non-resident income tax (deemed)	€200-€600/year	€150-€400/year
Utilities (water, electricity, gas, internet)	€1,500-€3,000/year	€1,200-€2,500/year
Maintenance and repairs	€500-€2,000/year	€500-€2,000/year

Step 2: Spain or Portugal? Making the Right Choice

Both countries are excellent choices for UK buyers, but they suit different priorities. Here is an honest comparison:

Factor	Spain	Portugal
Property prices	Higher on average (Costa del Sol, Balearics)	Lower, especially Silver Coast and interior
Climate	Hotter summers, Mediterranean coast	Milder (west coast), hotter (Algarve)
Language barrier	Moderate — large expat communities in key areas	Many Portuguese speak English, smaller expat bubble
Flight connections from UK	Excellent (Malaga, Alicante, Barcelona, Palma)	Good (Lisbon, Faro, Porto)
Healthcare quality	Excellent public and private	Good public, excellent private in Lisbon/Porto
Rental income potential	Strong (Costa del Sol, Balearics, Barcelona)	Growing (Algarve, Lisbon coast)
Bureaucracy	Slow but well-established processes	Slightly faster, digital NIF available
Tax on non-residents	24% on rental income (no deductions post-Brexit)	25% on rental income (some deductions allowed)
Residency pathway	Non-lucrative visa (proof of income needed)	D7 visa (passive income) or investment routes
Expat community size	Very large (300,000+ UK nationals)	Smaller but growing (50,000+ UK nationals)

For detailed buying processes, read our guides: Buying Process in Spain and Buying Property in Portugal.

Step 3: Assemble Your Team

You need four professionals before you start viewing properties. Not after. Not during. Before.

1. Independent Lawyer (Abogado / Advogado)

This is the most important hire you will make. Your lawyer must be:

• Independent of the seller, the agent, and the developer. Never use a lawyer recommended by the person selling you the property. Their loyalty is divided at best, compromised at worst
• Qualified in the country where you are buying. A UK solicitor cannot do conveyancing in Spain or Portugal. You need a local lawyer with property law expertise
• English-speaking. You need to understand every document you sign. If your lawyer cannot explain things clearly in English, find one who can
• Experienced with non-resident UK buyers. Post-Brexit buying involves specific tax, visa, and currency considerations that a lawyer who only works with local buyers may not handle well

Expect to pay €1,500-€3,000 in legal fees for a standard purchase. This is not a cost to minimise — it is an investment in protection.

2. Currency Broker

You will be transferring large sums from GBP to EUR. Using your high-street bank for international transfers is expensive — typically 2-4% above the mid-market exchange rate, plus transfer fees. A specialist currency broker (such as Currencies Direct, Wise, or Moneycorp) will save you 1-2% on every transfer, which on a €300,000 property is €3,000-€6,000.

Key features to look for:

• Forward contracts: lock in today's exchange rate for a future transfer, protecting your budget if the pound weakens
• Rate alerts: get notified when the exchange rate hits your target
• Dedicated dealer: a named person who handles your transfers, not a call centre
• FCA regulation: essential for the protection of your funds

3. Real Estate Agent

In both Spain and Portugal, the agent typically works for the seller and is paid by the seller. As a buyer, you should not pay agent commission. However, you can and should find an agent who prioritises buyer service — someone who will show you properties that match your needs, not just properties they are desperate to sell.

Signs of a good overseas property agent:

• They ask detailed questions about your requirements, budget, and lifestyle before showing properties
• They show you properties from multiple developments and sellers, not just one
• They provide factual information about areas, not just sales hype
• They do not pressure you to make quick decisions or pay deposits on the spot
• They are registered and licensed (API registration in Portugal; regional registration in Spain)

4. Surveyor / Architect

Unlike in the UK, property surveys are not standard practice in Spain or Portugal. Mortgage lenders require a valuation but this is a desktop or brief visual check — not a structural survey. For a property you plan to invest hundreds of thousands of pounds in, commissioning an independent survey is strongly recommended.

• In Spain: hire an arquitecto técnico (technical architect) or aparejador for a structural survey. Cost: €300-€800
• In Portugal: hire an engenheiro civil (civil engineer) or arquitecto. Cost: €300-€700

Step 4: Financing Your Purchase

Option A: Cash Purchase (Releasing UK Equity)

Many UK buyers fund overseas purchases by remortgaging their UK property or selling a UK asset. This avoids the complexity of obtaining a foreign mortgage. Consider:

• UK mortgage rates may be lower than Spanish or Portuguese mortgage rates
• You avoid foreign mortgage arrangement fees and the complexity of local banking
• You have full ownership from day one — no foreign bank involved in your Spanish/Portuguese property
• Currency risk remains — you are converting GBP to EUR at a point in time

Option B: Local Mortgage (Spain or Portugal)

Spanish and Portuguese banks lend to non-resident UK buyers, typically under these conditions:

• Loan-to-value (LTV): maximum 60-70% for non-residents (vs 80%+ for residents)
• Term: up to 20-25 years, but age-dependent (loan must typically be repaid by age 70-75)
• Interest rates: variable rates from Euribor + 1-2%; fixed rates from 3-4.5% (2026 rates)
• Income requirements: mortgage payments should not exceed 30-35% of net income
• Documents needed: 2-3 years of UK tax returns, P60s, bank statements, proof of income, credit report

Step 5: The Due Diligence Checklist

This is the section you print out and work through methodically. Your lawyer should handle most of these, but you should understand what they are checking and ask for confirmation of each item.

Step 6: Understanding the Timeline

Do not expect the speed you are used to in the UK. Here is a realistic timeline:

Stage	Spain (typical)	Portugal (typical)
Obtain NIE/NIF	2-6 weeks	1-4 weeks (digital NIF available)
Property search	1-4 weeks (visits)	1-4 weeks (visits)
Offer and negotiation	1-2 weeks	1-2 weeks
Due diligence	2-4 weeks	2-4 weeks
Reservation/deposit contract	Immediate once agreed	Immediate once agreed
Mortgage approval (if applicable)	4-8 weeks	4-8 weeks
Completion at notary	4-12 weeks after deposit	4-12 weeks after CPCV
Land Registry registration	1-3 months after completion	1-2 months after completion

Total from first visit to keys in hand: typically 3-6 months. It can be faster for cash purchases of vacant properties, or slower if mortgage approval, planning issues, or inheritance complications arise.

Step 7: Common Mistakes to Avoid

Every experienced overseas property lawyer has a list of stories. These are the mistakes that come up repeatedly:

1. Signing documents you do not fully understand. Never sign anything in Spanish or Portuguese that has not been translated or fully explained by your lawyer. "The agent said it's just a standard form" is not good enough
2. Paying deposits directly to the seller or agent before legal checks. All deposits should go through your lawyer's client account or into a designated escrow arrangement. If the seller insists on direct payment before due diligence is complete, walk away
3. Using the seller's lawyer. Their lawyer works for them, not you. Always appoint your own independent lawyer
4. Skipping the survey because "the property looks fine." Hidden problems — subsidence, damp, illegal extensions, faulty wiring, asbestos, termites — are invisible to the untrained eye
5. Underestimating ongoing costs. Community fees, property tax, non-resident income tax, insurance, and maintenance add up to €3,000-€8,000 per year even for a modest apartment
6. Making emotional decisions under holiday conditions. You visit on a sunny day, drink wine at lunch, view a property with a sea view and bougainvillea on the terrace, and suddenly you are ready to sign. Come back for a second visit in different weather. Stay for a week. Walk the neighbourhood at night. Check the property in January, not just July
7. Ignoring currency risk. A 10% swing in GBP/EUR (entirely normal over a 6-month period) on a €300,000 purchase is £30,000+. Use a forward contract to lock your rate
8. Buying off-plan from an unlicensed developer. Verify the developer's licence, bank guarantee for deposits (required by law in Spain), and track record. Off-plan purchases carry risks that completed properties do not
9. Not visiting in winter. Some holiday areas are ghost towns from November to March. If you plan to use the property year-round, you need to see it in the off-season
10. Assuming rental income will cover all costs. In most locations, realistic net rental yield is 3-5% after all costs. Factor this conservatively, not optimistically

Step 8: Red Flags When Viewing Properties

Know what to look for during viewings. These issues should trigger further investigation or cause you to walk away:

• Damp patches, mould, or musty smell: especially in ground-floor apartments and older buildings. This can indicate structural damp, poor ventilation, or plumbing leaks that are expensive to fix
• Cracks in walls or ceilings: hairline cracks are normal (thermal movement). Diagonal cracks wider than 3mm, cracks around door frames, or cracks that are clearly recent may indicate subsidence or structural movement
• Pressure to sign immediately: "There's another buyer coming tomorrow" is the oldest trick. Genuine urgency exists, but artificial pressure is a red flag
• No energy performance certificate (EPC): legally required. If the agent does not have one, the seller may be hiding poor energy ratings or the property may have legal issues
• Discrepancies between the escritura and reality: if the property has rooms, extensions, or covered terraces that are not shown on the title deed, they may be illegal builds
• Agent discourages you from appointing your own lawyer: a legitimate agent will welcome independent legal advice. Any resistance is a warning sign
• Community areas in poor repair: if the communal stairway, garden, pool, or façade is neglected, the community is either underfunded or poorly managed. Your community fees will rise
• Unfinished neighbouring construction: construction sites that appear abandoned may indicate developer bankruptcy. Check what the planned completion is and whether permits are still valid

Step 9: After You Buy — What Happens Next

Completing the purchase is not the finish line. Here is what you need to do in the weeks following completion:

Immediate (First 2 Weeks)

• Transfer utility contracts (water, electricity, gas) into your name or a management company's name. Your lawyer or a gestor can handle this
• Set up home insurance — mandatory if you have a mortgage, strongly recommended regardless. Ensure it covers the property while empty (many policies exclude unoccupied properties after 30-60 consecutive days)
• Change the locks. You do not know how many copies of the keys exist
• Set up a direct debit for community fees with your Spanish or Portuguese bank account

First 3 Months

• Register for non-resident tax obligations. In Spain, this means Modelo 210 (annual deemed income and quarterly rental income). In Portugal, similar obligations through the Finanças. Appoint a local tax advisor (gestor fiscal) — annual cost €200-€400
• Furnish the property if needed. IKEA has stores in Malaga, Lisbon, and Porto. Local furniture shops offer delivery. Budget €5,000-€15,000 to furnish a 2-3 bed property from scratch
• Set up internet and TV. Main providers: Movistar, Vodafone, Orange (Spain); MEO, NOS, Vodafone (Portugal). Contract vs pay-as-you-go depends on how often you will use the property
• Consider a property management company if you will not be living there full-time. Services include key holding, regular inspections, bill management, cleaning, and emergency response. Cost: €100-€300/month

Ongoing

• File your tax returns annually. Non-resident property owners in both Spain and Portugal have annual filing obligations — even if the property is not rented. Read our costs and taxes guide for details
• Keep records of all property expenses. Receipts for renovations, improvements, and furnishings can reduce your capital gains tax liability when you eventually sell
• Review your will. Spanish and Portuguese inheritance law differs significantly from English law. Consider making a separate will covering your overseas property, drafted by a local lawyer who understands cross-border succession

Step 10: The Emotional vs Rational Decision

Buying property abroad is an emotional decision dressed up in financial clothing. The sunshine, the lifestyle, the fantasy of morning coffee on a terrace overlooking the sea — these are powerful motivators. And they should be. Life is short, and owning property in a place you love is genuinely rewarding.

But the happiest overseas property owners are the ones who let emotion choose the destination and then let logic manage the purchase. Fall in love with the area, but hire a cold-eyed lawyer. Dream about the terrace, but read the community minutes. Imagine the lifestyle, but budget for the boring costs.

The golden rule: If you would not buy this property at this price in this condition if it were located in Swindon rather than on the Costa del Sol, do not buy it. Sunshine should not add 50% to what you are willing to pay for a structurally questionable apartment with a damp problem.

For more on the buying process, read our step-by-step guides: Buying Process in Spain and Costs and Taxes. Visit the UK buyers hub for all our resources in one place, and use the MUNDO cost calculator to get a clear picture of your total investment before you commit.