The Madrid Buying Guide

What I explain to every buyer before they start looking, in one place.

By Jaime Romero, independent property finder in Madrid. Prices updated June 2026.

How to use this guide

Sections 1 to 3 tell you whether the numbers work. Sections 4 to 7 are the process and the checks. Section 8 is the part that saves people the most money.

1. The honest timeline

WhenWhat happens
3 months beforeSort your NIE and open a Spanish bank account. Get a mortgage pre approval if you need one.
2 months beforeDefine your brief and your real budget. Start viewing, in person or by video.
Offer acceptedSign the deposit contract (arras), usually 10 per cent. Your lawyer reviews it first.
Next 4 to 8 weeksBank valuation, legal checks, mortgage approval.
CompletionSign at the notary, pay, get the keys.
AfterRegistration, taxes, utilities into your name.

Realistically one to three months from accepted offer to keys. The NIE and the mortgage are what stretch it, which is why both go first.

2. The money, in full

ItemRoughly
Purchase priceYour starting figure
Transfer tax (ITP), resale in Madrid6 per cent
VAT + stamp duty, new build10 per cent + 0.75 per cent instead
Notary and land registryAround 1 per cent
Independent lawyerAbout 1 per cent
Bank valuation, if you take a mortgageA few hundred euros
Estate agency commissionPaid by the seller

Add about 10 per cent on top of the price. A 400,000 euro flat really costs about 440,000.

If you need a mortgage

Non residents are typically offered 60 to 70 per cent of value, residents often up to 80. So as a non resident buying at 400,000 you need roughly 160,000 to 200,000 euros of your own money, deposit plus costs.

The valuation trap: the bank lends on the lower of the price and its own valuation. Agree 400,000, valuer says 370,000, and your percentage is calculated on 370,000. You cover the gap in cash.

3. Price cheat sheet

Asking prices per square metre, June 2026 (Idealista). Multiply by the size of the flat.

DistrictEUR/m280 m2Year
Salamanca10,964~877,000-0.5%
Chamberí9,247~740,000+5.1%
Retiro8,488~679,000+2.2%
Chamartín8,301~664,000+9.5%
Centro7,772~622,000+3.8%
Madrid average6,576~526,000+3.9%
Arganzuela6,383~511,000+10.6%
Tetuán6,245~500,000+11.6%
Hortaleza (Sanchinarro)5,586~447,000+10.3%
Ciudad Lineal5,319~426,000+12.0%
Barajas5,052~404,000+16.0%
Carabanchel3,829~306,000+13.9%
Usera3,613~289,000+17.0%
Villaverde3,254~260,000+23.5%

Note the last column. The expensive districts have stalled and the cheaper ones are rising fast. That is the single most useful pattern in this table.

4. Documents you need

  • Passport
  • NIE (not optional)
  • Spanish bank account
  • Proof of income: contract, payslips, or accounts if self employed
  • Tax returns from your country, usually the last two
  • Bank statements, six to twelve months
  • Proof of the origin of your funds (anti money laundering)
  • Official translations, and sometimes an apostille

5. The process, step by step

  1. NIE and bank account. Start early, the appointment is the bottleneck.
  2. Mortgage pre approval, if you need financing. It tells you your real budget.
  3. Search and viewings. Video viewings work well if you are still abroad.
  4. Offer and reservation.
  5. Arras contract, normally 10 per cent. Under the standard form, you walk away and lose it, the seller walks away and pays you double.
  6. Legal checks. Your lawyer, not the seller’s.
  7. Valuation and mortgage approval.
  8. Notary. You sign the escritura, pay, get the keys.
  9. Registration and taxes, usually via a gestor.

6. The legal checks that matter

  • Nota simple from the Land Registry: who owns it, and whether there are mortgages, embargoes or charges
  • Community debts: they follow the property for the current year plus the previous three
  • Approved derramas: building works voted but not yet paid
  • IBI (council tax) paid and up to date
  • Licence of occupation or habitability certificate
  • ITE: the building’s technical inspection, if required
  • Energy certificate
  • Registered square metres match reality, and any extension is legal
  • Tenants: if occupied, the contract passes to you
Use your own independent lawyer, not one recommended by the seller or the agency. It costs about 1 per cent and it is the best money you will spend.

7. Viewing checklist

  • Lift, and which floor
  • Orientation and natural light at different times
  • Heating and air conditioning, and who pays
  • Windows: double glazing or single
  • Damp in corners, ceilings, behind furniture
  • State of the building: entrance, roof, facade, garage
  • Noise, including a visit after 10pm
  • Monthly community fee, and what it includes
  • Any works planned in the building
  • Neighbours and how the community is run
  • Walk to the metro or train, timed, not estimated
  • Renovation needed, and a realistic quote before you offer

8. Red flags

  • Being asked for money before your lawyer has seen the nota simple.
  • A seller who will not provide the community debt certificate.
  • Registered metres that do not match what you are standing in.
  • Pressure to sign the arras today because «there is another buyer».
  • Being told buying gets you residency. It does not, not since April 2025.
  • Anyone offering to under declare the price at the notary. That is a fraud and the risk lands on you.

9. Useful Spanish

Can I see the nota simple?
¿Me puede facilitar la nota simple?
Is the property free of charges and mortgages?
¿La vivienda está libre de cargas e hipotecas?
Are the community fees up to date? Any approved derramas?
¿Están al corriente los gastos de comunidad? ¿Hay alguna derrama aprobada?
How much is the monthly community fee?
¿Cuánto son los gastos de comunidad al mes?
Has the building passed its technical inspection?
¿El edificio ha pasado la ITE?
Is the price negotiable?
¿El precio es negociable?
What are the registered square metres?
¿Cuántos metros cuadrados constan en el Registro?

Want someone doing this for you?

I am Jaime, an independent property finder in Madrid. I search, filter, view on your behalf, check the basics before you get attached, and negotiate. I am paid by you, never by the seller.

Talk to me on WhatsApp

General information, not legal, tax or mortgage advice. Price data: Idealista, June 2026. Tax rates, lending criteria and rules change: confirm with a lawyer, gestor or tax adviser before committing.

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