It´s an exciting time when you are looking to buy a new home, a first home or a holiday home and the most important thing when buying a property in Spain is to have knowledgeable people in the industry who have experience and know what checks should be done and the process involved. Having over 17 years ‘experience in the industry, we to make the process as simple and stress free as possible, taking you through every step of the way.
We have put together a basic guide of what to expect when buying a property in Spain:
1. Once you have decided on a property you wish to purchase, and an offer and its terms are accepted, there is then a deposit of €3000 to be paid to take the property off the market. Within a month 10% of the property´s value is then due, minus the €3000 already paid. If at any point you decide to back out from the purchase, you will lose this 10%. The remaining 90% of the property value is then due on the day the title deeds are signed before the notary.
2. Although not necessary, we do recommend you get a solicitor or conveyancer that specializes in Spanish property law to help with the purchasing process. They will carry out all the necessary checks on the property to ensure the property is legal, has all the necessary certificates for any additional developments carried out and that it has no outstanding debts. A solicitor/Conveyancer can also help you with going through the contracts and obtaining an NIE number, if you do not already have one. You can choose anyone you want, however we do have some good recommendations, if you wish.
3. To complete the buying process, you will also need a Spanish bank account, which we can assist you in setting up.
4. Once the property has been checked, deposits paid and contracts drafted, there will be an agreed date where the title deeds (escritura) will be signed and the remaining property value will be paid at the notary (Notario). The notary will represent both parties in the buying process and their fees are paid on the day of signing the deeds and will vary depending on the property’s value. Once all forms are signed, the notary will retain the original copy and apply for a formal change in Land Registry. The buyer will receive a legal stamped copy of the title deeds which must be kept safe. A change in official title deeds can take a while so you must keep your copy safe, as this is your proof of ownership until then.
5. In Spain there is a 10% tax which is paid on top of the property price. We usually recommend you facture in about 14-15% of the price of the property to cover fees and taxes e.g. Land registry fees, notary fees, IVA, lawyer’s fees and taxes.
6. New builds will have a different deposit system and associated taxes and costs to resale properties.
Please feel free to contact us if you require more information or would like to buy a property in the area. We are always on hand to assist you with any questions you may have.
This is only a guide into the buying process in Spain and is not intended as a substitute for advice from an independent solicitor.