Buying property à Madrid with a dedicated expert

Property purchase prices in Madrid vary dramatically across districts, reflecting differences in location, prestige, infrastructure, and buyer profile.

• Salamanca: Madrid's most expensive district, with average purchase prices of approximately €9,417/m² as of April 2025 (source: Investropa, April 2025). Home to luxury boutiques, embassies, and high-end residential buildings. Attracts high-net-worth domestic and international buyers.
• Chamberí: A prestigious residential district with prices ranging from approximately €6,200 to €7,000/m². Popular with professionals and families seeking a central, village-like atmosphere.
• Retiro: Bordering Madrid's iconic park, with prices of approximately €6,500 to €7,500/m². Sought after for its green spaces and elegant architecture.
• Centro: The historic heart of Madrid, with prices of approximately €6,500 to €7,000/m². Attracts buyers seeking character properties and proximity to cultural landmarks.
• Chamartín: A business and residential district north of the centre, with prices broadly in the €5,000 to €7,000/m² range. Popular with corporate buyers and families.
• Carabanchel, Usera, Puente de Vallecas, Villaverde: Outer southern districts offering the most accessible entry points to the Madrid purchase market. Prices range from approximately €2,400 to €3,800/m², with Villaverde among the most affordable at around €2,750/m² (source: Investropa, early 2026). These areas attract first-time buyers and investors seeking higher yields.

The citywide average purchase price stood at approximately €6,021/m² in April 2025 (source: Investropa, April 2025), with significant variation between the premium central almendra central and the more affordable outer ring.

1. Obtain your NIE: Apply for your Spanish foreigner identification number before making any offer. The process can take several weeks and is mandatory for signing the deed.
2. Property search and viewings: Identify properties through local agents, online portals (Idealista, Fotocasa), or a buyer's agent. Attend viewings and shortlist candidates.
3. Legal due diligence: Instruct a property lawyer to obtain the nota simple from the Land Registry, verify ownership, check for mortgages, liens, debts, and confirm planning compliance.
4. Reservation agreement: Once a property is selected, a reservation contract and a small deposit (typically €3,000–€6,000 EUR) are signed to take the property off the market while due diligence is completed.
5. Contrato de Arras (private purchase contract): A binding preliminary agreement is signed by both parties. The buyer pays a deposit — typically 10% of the purchase price. If the buyer withdraws, the deposit is forfeited; if the seller withdraws, they must return double the deposit (source: Spanish real estate law).
6. Mortgage application (if applicable): Submit the mortgage application to a Spanish bank. The bank will commission an official appraisal of the property.
7. Signing the Escritura Pública (public deed): Both parties sign the title deed before a notary. The notary verifies the transaction but does not act as the buyer's legal adviser. The balance of the purchase price is paid at this stage.
8. Payment of taxes: ITP (resale) or IVA + AJD (new build) must be paid within 30 days of signing the deed, via a self-assessment form submitted to the regional tax office.
9. Land Registry registration: The deed is registered at the Registro de la Propiedad, formally transferring ownership to the buyer.
10. Utility transfers: Water, electricity, and gas contracts are transferred to the new owner's name.

A resale transaction typically takes 6 to 10 weeks from offer to completion (source: Spanish real estate law guide, 2026).

Non-resident buyers can access mortgage financing from Spanish banks to purchase property in Madrid, though the conditions differ from those offered to residents.

• Loan-to-Value (LTV): Spanish banks typically lend between 60% and 70% of the property's appraised value to non-residents, compared to up to 80% for residents. Buyers must therefore provide a minimum down payment of 30% to 40% of the purchase price (source: multiple Spanish banks, 2025).
• Additional costs: On top of the down payment, buyers must budget a further 10% to 13% of the purchase price to cover taxes, notary, and registration fees — meaning total equity required is typically 40% to 53% of the purchase price.
• Loan term: Non-resident mortgages are generally granted for 20 to 25 years, with repayment required before the borrower reaches age 75.
• Interest rates: Both fixed-rate and variable-rate (Euribor-indexed) mortgages are available. Indicative rates for non-residents ranged from approximately 3% to 5% depending on profile, country of origin, and income currency (source: multiple lenders, July 2025).
• Required documents: Passport, NIE, proof of income (payslips or tax returns for 2–3 years), bank statements, employment contract or company accounts for self-employed applicants, and details of existing financial commitments.
• Bank appraisal: The lending bank will commission an official appraisal (tasación) of the property before approving the mortgage.

Using an independent mortgage broker with experience in non-resident Spanish financing is strongly recommended to compare offers from multiple lenders and secure the most suitable terms.

When purchasing property in Madrid, buyers typically work with a combination of professionals whose fees form part of the total acquisition cost.

• Real estate agent (seller's agent): In Spain, the seller's agent commission is generally paid by the seller, not the buyer. Commission rates typically range from 3% to 5% of the sale price. Buyers should confirm this arrangement in writing before proceeding.
• Buyer's agent / property finder: Some international buyers engage a dedicated buyer's agent to search, shortlist, and negotiate on their behalf. Fees vary but typically range from 1% to 3% of the purchase price, paid by the buyer.
• Property lawyer (abogado): Strongly recommended for all buyers, especially non-residents. Legal fees generally range from 1% to 1.5% of the purchase price (plus 21% VAT). Services include due diligence, contract review, NIE assistance, tax filings, and deed coordination.
• Notary fees: Set by a regulated scale and generally range from 0.5% to 1% of the purchase price. The notary drafts and authenticates the public deed of sale.
• Land Registry fees: Approximately 0.1% to 0.25% of the purchase price for registering the title deed in the buyer's name.
• Mortgage broker (if applicable): Fees vary; some brokers charge a flat fee, others a percentage of the loan amount. Always clarify the fee structure in advance.
• Administrative agency (gestoría): Often engaged to handle tax filings and registry submissions on behalf of the buyer; fees are typically a few hundred euros.

All professional fees should be agreed in writing before any service is rendered. Buyers are advised to request itemised quotes from each provider.