The following is only a guide. You should get a good up to date book on the subject and consult a recommended Spanish solicitor for more details. BOOK REFERENCE SECTION:

DETAILS & PROCEDURE

Deposit:

Once you have decided on a property you will be asked to pay a deposit. The amount can vary but should be a minimum of 10% of the purchase price, and should be held by your legal representative whilst contracts are being drawn up. It is important to establish at this point whether the deposit is refundable should any unforeseen problems arise.

Contract:
The Compra-Venta (purchase contract) can be drawn up by the agent or legal representative. In order to draw up the contracts it is necessary to agree on a completion date (which can include a penalty clause for compensation should there be a delay in the completion) to determine the name or names of the purchaser, and whether you are going to appear in person before the Notary on completion or if you want to give Power of Attorney to your solicitor or other responsible person to sign on your behalf.

Legal Representation:
You should appoint a legal representative to act on your behalf on all matters relating to the purchase of the property. They will make sure that:
a) The contracts are in order.
b) Conduct a search on the property to ensure that the title deeds are correct.
c) There are no outstanding debts on the property. The latter is checked by obtaining a Nota Simple - a document from the
Registry Office (In Dolores) showing who owns the property and whether there are any debts registered on the property. You will need to pay a small fee for this. It is not usual to have a survey carried out on a Spanish property. You can arrange for this privately if you wish.

Finance:
Should you require a mortgage to purchase the property this can be arranged in Spain or in the UK. Remember to make sure that the necessary funds are available to meet the completion date. It is possible to raise finance to assist with the purchase of a property in Spain either by mortgaging the property itself or by mortgaging or adding to the mortgage on any property which you may have in Britain.

Bank Account:
It is necessary for you to open and maintain a bank account in Spain. NON RESIDENT BANK ACCOUNTS; these are free of income tax liability. You money accrues interest (which is not usual in a current account ) and the profit is not subject to any retention for Income Tax purposes as this profit should be taxed in your home country as you are not considered a tax resident in Spain. 

Signing of Contracts:
Upon securing that the contents of the contract are in order, you should sign, at which stage it becomes binding for all parties.

Transfer of Title Deed:
Full payment is required before the title deed can be transferred into your name. If you are buying a new property you must follow the payment schedule as detailed in the contract as the building reaches each stage of construction.  

Property Registry Fees:
The registry fees are based on the registered value of the property.

I.V.A. (V.A.T):
You must pay this tax before the Escritura (title deed) can be registered in your name. In the case of a new private property (land and a dwelling), the tax is 7% of the registered deed value. You can sign an Escritura for just the land that your property is going to be built on, and a subsequent Escritura for the Obra Nueva once the dwelling has been built. However, it is usually best to wait until the house is built as this will avoid you having to pay the higher rate of 16% that one must pay when purchasing a plot of land alone. Upon completion of the house a further 7% IVA would need to be paid. To wait and then sign everything once the house is complete will incur only 7% IVA on the total price of the land and the house. A 16% tax is levied on the subsequent construction of a garage or swimming pool, if these are built after the property has been registered.

Government Registration Tax:

1% of the declared value of the dwelling once the Escritura has been signed (new properties only).

Notary Fees:The Notary's fees can vary but on average are about 0.5 % of the value of the property.

Plus Valia Tax:This is a tax relating to the property and is calculated and applied by the local Town Hall in respect of the increase in the value of the land since it was last sold. Strictly speaking, this tax should be paid by the buyer but, because the liability for this tax is always on the seller, sometimes it is paid by the seller. This tax must be paid otherwise, in the long term, the property will be the gaurantee for the payment of this tax. 

Stamp Duty:
6% is payable on new properties.

Taking Possession:
Handing over the property and it's keys will normally take place once the full purchase price has been paid.

Transfer of Services:
Having completed the purchase, it is necessary to connect or transfer services. Both electricity and water meters need to be in your name, and to avoid payment problems, a direct debit or standing order with your Spanish bank should be used.

Insurance re: New Properties:
It is now law that all constructors must take out an insurance against subsequent serious defects or their company going bankrupt before the building has been completed (much like the NHBC Certificate in the UK). Because these insurances are relatively new in spain they often take months to arrange, which could delay completion of the property, it is worth checking your constructor has this aspect in hand so it is not left until the last minute. Constructors usually pass the cost of this insurance on to the purchaser, and it is quite a significant amount. Ensure that this has been accounted for in your expenditure list, or is included in the contract price. This insurance cover is for the structure only.

Outstanding Debts:

It is adviseable to obtain a certificate from the Land Registry stating that there are  no outstanding debts on the property. This certificate should be attached as an annex to the purchace deed (escrituro).

Community Fees:
If you purchase a property within a complex, urbanisation or apartment block you are obliged to join it's residents association which administers general maintenance on areas of common ownership such as swimming pools, gardens, hallways, streets, etc. An annual budget is calculated to cover these costs, and divided between all the owners according to the size of their properties. All owners have a vote to agree the budget.

Rates and Taxes:
You MUST obtain from the local tax administration office a registration number and it is also advisable to appoint a 'Gestor' (Tax Accountant) who will ensure that the necessary payments are made on time and any forms are completed correctly.
-Local Rates: Variable, payable to the Town Hall (Ayuntamiento).
-Patrimonio - Wealth Tax: 0.2% of the declared rateable value (Valor Catastral) of the property.
-Property Tax: 25% of the taxable base (1.1% of the property).

N.I.E. Identification number for Foreigners:
This is needed for anything which might have tax implications such as buying a property, a car, etc

Residency:
You are not required to be a resident of Spain to buy a property. It can have certain advantages to take out the 'Residencia Certificate'. Mainly one has the same legal rights as any Spanish citizen and also it enables you to have a residents bank account, which means your account charges will be at lower  rates (amongst other benefits).