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A simple buyers guide

Buying a property in Spain

Before purchasing a property in Spain, it's crucial to familiarize yourself with the Spanish buying process. It may be quite different from the process in your country.

In Spain, a Notary doesn’t follow the process of the purchase, it is essential to be assisted by a legal representative who will ensure that the process is undertaken properly, and it legally complies with Spanish law. It is advisable that it is situated in the same location as your purchase.

Proadner Logo, our legal department, can assist you in buying. For more information contact us at [email protected]  It is recommended to take a solicitor if this property is outside the urban center (in the mountains for example).

TO BUY A PROPERTY IN SPAIN IT IS NECESSARY:

1/ To obtain a 'NIE'. This is an identification number assigned to foreigners. All owners are required to have a NIE on completion, at the notary.

2/ To have a legal representative who speaks your language and who will ensure that:

  • You purchase a property legally registered.
  • The property is without encumbrances at the Land Registry, Cadaster, and the Town Hall.
  • The legal representative will raise the private agreement in Spanish (compulsory) and your language (essential)
  • He/She will advise you on how to transfer the funds and arrange all the payments on the day of completion.
  • He/She will translate the document into your language at the notary (the deed is written in Spanish only) and will assist/represent you for the signature of the title deed.
  • He/She will pay your transfer taxes, register the deed at the Land Registry, the Town Hall, the Tax Office ... and will make sure that all the utility contracts are in your name (water, electricity, community...).

IMPORTANT: The costs of purchase in Andalusia vary between 9 and 10% of the purchase price. 

The legal representative's role is essential in this transaction. For more information contact our legal department PROADNER directly at [email protected]

 

PURCHASE PROCESS

THE PURCHASE OFFER  -  Once you have made an offer and it is accepted, usually you are required to pay a reservation fee of € 3,000. Before you pay and sign a reservation (or deposit) it is advised to talk with a legal representative who will ensure that the conditions of this reservation are sufficient. The purchasing conditions must be clearly indicated from the beginning as should be the conditions of cancellation.

ADMINISTRATIVE RESEARCH  -  When the reservation is signed, your legal representative will check the paperwork with the Land Registry, the Town Hall, the Tax Office, the Cadaster office... to ensure that the property is legally registered and without any encumbrances. Your legal representative can also check that the property is not affected by future urban projects (redistribution of the area, construction of roads, sidewalks, restoration of the sector where the property is located ...) in which case, sometime in the future owner should contribute to the costs. In Spain the legal representative is the person who will make these searches. This is an essential step that should not be overlooked!

PRIVATE SALE/PURCHASE CONTRACT  - Following the outcome of the administrative search, your legal representative will make a private agreement (including all the required certificates). It will stipulated all the purchase conditions of the property. This contract must be written in Spanish, in the language of the sellers, and in your language and will have to be signed by both parties (sellers / buyers). At the time of this signature, you will make a transfer of an amount representing 10% of the price (less the amount of the reservation already paid).

TITLE DEED SIGNATURE  -  The funds should be in your legal representative account the day of the completion (the signing of the public title deed at the notary). The net amount for the sellers will be given at the notary at the time of signing. The deed will be translated by your legal representative into your language as you have to understand all the content.

FEES AND REGISTRATION TAX    

Registry and Notary fees are around € 1600 (when there is no mortgage involved in the purchase). The registration tax is 7% of the purchase price of the property. The total fee/tax of purchase varies between 9 and 10% of the purchase price. Your legal representative will be responsible for paying your taxes and submitting the document to the Spanish Property Land Registry. This last step will confirm the name of the new owner. 

IMPORTANT: Your legal representative will also be responsible for ensuring all contracts are in your name (water, electricity, community, the tax office, etc.).

Buyers frequently asked questions

An NIE is an identification number for non-Spanish people. This number is a mandatory requirement for any purchase in Spain particularly the acquisition of property in Spain. The Notary will not sign the deed of purchase if you do not have your NIE.
Yes, it is essential to ensure you buy a property free of any kind of charges before signing the private contract and the title deed. A legal representative will be responsible for tax registration and the inscription of ownership at the Land Registry.
He/She can be a property manager, an administrator of properties... However, when you buy outside of the urban area, it is advisable to take a lawyer. Above all, it is important that this representative is based in the area where you are buying the property and that you can understand him/her perfectly.
It is advisable to make a financial comparison between your bank (in your country) with what your bank in Spain can offer.
The Notary authenticates the title purchase/sale. He verifies the authenticity of the certificates provided by your legal representative (certificates obtained to ensure that you buy a property free of any charge ...) and prepares the signature of the deeds.
In Spanish only. Your legal representative will translate and assist you when signing the title.
Yes, buyers and sellers must be present. If they can’t, they must sign a Power of Attorney to their legal representative or someone else to sign on their behalf.
It can be made by transfer or Spanish bank draft (only if buyers and sellers have a Spanish account). Usually, the buyers send the funds to their representative who makes the payment directly to the sellers the day of the signing.
Fees vary between 9 and 10% of the purchase price. It includes Transfer tax, Notary and Land Registry fee, legal represenation fee.
You have two types of taxes to be paid per year: local taxes (IBI, rubbish collection ...) and the ‘tax return’ which is the declaration of your assets as a non-resident in Spain. The local taxes are paid automatically, by direct debit. The ‘tax return’ must be calculated by an accountant/ professional. Your legal representative will be able to help you to complete this tax.