Polish investors and private buyers are increasingly purchasing property in Málaga and the Costa del Sol, whether as a second home, a permanent residence or an investment. As EU citizens, Polish buyers can acquire real estate in Spain, but the transaction remains subject to Spanish property, tax, planning and registration law.
Before signing a reservation agreement, deposit contract or private purchase contract, it is important to carry out independent legal due diligence on the property and to understand the tax and contractual consequences of the transaction.
For Polish buyers, succession planning may also require particular attention because ownership of Spanish property can give rise to cross-border inheritance issues involving both Spanish and EU law.
1. Buying Property in Spain for Polish Investors
Polish citizens, as EU nationals, can purchase property in Spain without any general restriction based solely on nationality. However, they will normally need a Spanish NIE (Número de Identidad de Extranjero) for the transaction and related tax formalities.
The contractual process varies from one transaction to another. A buyer may be asked to sign a reservation agreement, a deposit agreement or contrato de arras, or another private purchase contract before completion before a Notary.
These documents should not be signed without understanding their legal effect. In particular, not every deposit or arras agreement gives the buyer a simple right to withdraw by forfeiting the amount paid. The consequences of withdrawal or breach depend on the terms agreed and on the legal nature of the contract.
Before completion, the buyer’s lawyer should verify the ownership, registered charges, planning situation, community matters, taxes and other circumstances affecting the property.
The purchase is normally completed by public deed before a Spanish Notary and subsequently presented to the Land Registry.
2. Obtaining a NIE for the Property Purchase
Polish investors will normally need a NIE (Número de Identidad de Extranjero) for the purchase and the associated tax and administrative formalities in Spain.
The NIE is the identification number assigned to foreign nationals in Spain for procedures in which such identification is required. It should not be confused simply with a tax number or with Spanish residence status.
Depending on the circumstances, the NIE can be applied for in Spain or through the corresponding Spanish Consulate abroad. It may also be possible for a lawyer or other authorised representative to deal with the application under a Power of Attorney.
The NIE should therefore be organised sufficiently early so that it does not delay completion of the transaction.
3. Taxes and Costs When Polish Investors Buy Property in Andalucía
The taxes payable when purchasing property depend on the type of property and the nature of the transaction.
For the purchase of a resale property in Andalucía, the general rate of Transfer Tax (Impuesto sobre Transmisiones Patrimoniales Onerosas) is currently 7%, although reduced rates may apply in certain circumstances.
Purchases of new-build properties are generally subject instead to VAT and Stamp Duty (Actos Jurídicos Documentados), subject to the applicable rules.
In addition to taxes, the buyer should take into account Notary and Land Registry costs and, where applicable, legal, mortgage and other transaction expenses.
The overall cost of a property purchase should be calculated for the particular transaction rather than estimated solely by applying a fixed percentage to the purchase price.
4. Independent Legal Due Diligence Before Buying
Independent legal due diligence should be carried out before the buyer becomes irrevocably committed to the transaction.
Depending on the property and the circumstances of the purchase, the legal review may include verification of:
- ownership and Land Registry information;
- mortgages, charges, embargoes and other registered rights;
- cadastral and physical description of the property;
- planning and building-law issues;
- licences and authorised use;
- debts with the community of owners;
- local taxes and other outstanding liabilities;
- restrictions affecting coastal, protected or specially regulated property; and
- the terms of any reservation, deposit or private purchase contract.
A Land Registry extract is an essential part of the investigation, but it does not by itself replace a complete legal review of the property.
This is particularly important for international buyers who may be unfamiliar with the distinction between the functions of the Notary, the Land Registry and the buyer’s independent lawyer in a Spanish property transaction.
5. Reservation Agreements, Arras and Private Purchase Contracts
A buyer may be asked to pay a reservation deposit before the full legal investigation of the property has been completed. The legal consequences of doing so should be considered carefully.
The expression contrato de arras is commonly used in Spanish property transactions, but not every deposit agreement has the same legal nature or produces the same consequences.
Whether a buyer can withdraw from a transaction, whether a deposit can be recovered or forfeited, and what remedies are available in the event of breach depend on the wording of the agreement and the applicable law.
For this reason, Polish and other international buyers should obtain independent legal advice before signing a reservation agreement, arras contract or private purchase contract and before transferring a substantial deposit.
6. Financing a Property Purchase in Spain
Polish buyers may finance a Spanish property purchase through a Spanish or foreign lender.
Mortgage conditions, loan-to-value ratios, documentation requirements and affordability criteria are determined by each lender and by the circumstances of the borrower. They should not be treated as fixed legal rules.
Where a mortgage is required, the financing timetable should be coordinated carefully with the contractual deadlines agreed for the purchase.
In particular, a buyer should understand the consequences of entering into a binding purchase contract before mortgage financing has been finally approved.
7. Buying a Property for Rental or Tourist Use
A buyer intending to rent the property should verify the applicable legal regime before purchasing.
Long-term residential letting and short-term or tourist accommodation are subject to different rules.
In the case of tourist accommodation, planning requirements, regional tourism regulations and the rules of the community of owners may affect whether the intended activity is legally possible.
Since 3 April 2025, the Spanish Horizontal Property Act also contains specific requirements concerning community approval for new tourist-rental activity in buildings subject to the horizontal property regime.
The possibility of operating a property as tourist accommodation should therefore be checked before the purchase if rental income forms part of the buyer’s investment plan.
8. Taxes After Purchasing the Property
Ownership of property in Spain may give rise to different tax obligations depending on whether the owner is resident or non-resident in Spain, whether the property is rented and whether it is subsequently sold or transferred.
These obligations may include local property tax (IBI), Spanish income or non-resident income taxation, taxation of rental income and taxes arising on a future sale.
The tax treatment should be considered according to the owner’s individual circumstances, including tax residence and the use made of the property.
A Polish owner should also consider whether ownership, rental income or a future disposal of the Spanish property has tax consequences in Poland and how the applicable rules on international taxation and double taxation affect the particular case.
9. Spanish Property and Cross-Border Inheritance
Owning property in Spain does not necessarily mean that Spanish succession law will govern the owner’s entire estate.
Under EU Regulation 650/2012, the law applicable to a cross-border succession is generally the law of the deceased’s habitual residence at the time of death, subject to the rules and exceptions contained in the Regulation.
A person may also choose the law of their nationality to govern their succession. A Polish national can therefore, where appropriate, choose Polish law in accordance with the Regulation.
The law governing the succession must be distinguished from the tax rules applicable to the inheritance of Spanish property.
For this reason, Polish owners of Spanish property should consider succession planning in coordination with any existing Polish will or other estate-planning arrangements.
A Spanish will can be useful for assets located in Spain, but it should not be prepared in isolation from the wider cross-border succession.
10. Why Independent Legal Advice Matters
The Notary, estate agent, seller and buyer’s lawyer perform different functions in a Spanish property transaction.
The buyer’s independent lawyer acts specifically in the buyer’s interests. The lawyer can investigate the legal position of the property, review and negotiate contracts, identify risks, coordinate the transaction and advise the buyer before binding commitments are made.
For an international buyer, legal advice is particularly useful before paying a deposit or signing contractual documents, rather than only at the final stage of the transaction.
I advise international clients on property purchases in Málaga and throughout the Costa del Sol, including legal due diligence, contract review, Power of Attorney, completion and post-completion matters.
11. Frequently Asked Questions for Polish Investors Buying Property in Spain
Can Polish citizens buy property in Spain?
Yes. Polish citizens are EU nationals and can acquire property in Spain without any general restriction based solely on their Polish nationality. They will normally need a Spanish NIE for the transaction and related tax formalities.
Do I need a Spanish bank account to buy property in Spain?
A Spanish bank account can be convenient and may be required in practice for certain payments, mortgage arrangements or ongoing expenses, but whether it is necessary should be considered according to the particular transaction rather than treated as a universal legal requirement.
Should I sign a reservation agreement or arras contract before instructing a lawyer?
Ideally, legal advice should be obtained before signing the agreement or paying a deposit.
Reservation agreements and arras contracts can create binding obligations, and the consequences of withdrawing from the purchase depend on the terms and legal nature of the particular agreement.
Do I need to travel to Spain to complete the purchase?
Not necessarily. Depending on the circumstances, many aspects of a Spanish property purchase can be dealt with through a lawyer acting under a valid Power of Attorney.
The scope and form of the Power of Attorney should be prepared according to the acts that the lawyer will need to perform on the buyer’s behalf.
Can I rent out the property after buying it?
Possibly, but the intended type of rental should be checked before purchase.
Tourist and short-term rentals are subject to regulatory, planning and community-of-owners requirements that may restrict or prevent the proposed use. A buyer intending to obtain rental income should therefore investigate the property’s legal suitability for that purpose before becoming contractually bound.
Which inheritance law applies if a Polish owner of Spanish property dies?
The answer depends on the EU rules governing cross-border succession.
As a general rule under EU Regulation 650/2012, the law of the deceased’s habitual residence at the time of death applies, subject to the rules and exceptions contained in the Regulation. A person may also choose the law of their nationality to govern their succession.
Polish owners of Spanish property should therefore coordinate ownership of the property with their wider succession planning.
12.Legal Assistance for Polish investors in Málaga and Costa del Sol
Buying Property in Málaga or the Costa del Sol?
A property purchase in Spain can become legally binding long before you sign the final deed before a Notary. If you are buying from Poland, obtaining independent legal advice at an early stage can help identify problems before you commit to the transaction or transfer a deposit.
I advise international buyers personally and independently, from the initial legal review and due diligence through to completion of the purchase.
Before you sign or pay a deposit, let me review the legal position of the property and the terms of the transaction.
