How To Buy Property in Spain.
The following is a general guide to purchasing new and resale property in Spain. However, this guide does not attempt to cover all legal and financial points, so prospective purchasers are recommended to seek professional legal advice. Invest in Spain Real Estate, can connect you with independent solicitors who can assist you in the buying process.
Choosing the Right Real Estate Agent and Lawyer.
The right agent and the right lawyer will make the transaction easier and ensure that your interest are protected. With over 25 years’ experience in selling property in Spain, Invest in Spain Real Estate can find you the right property and assist you along each stage of the process.
Reservation Deposit / Due Diligence Process.
Once the right property is found, the purchase process begins with a reservation agreement that will take the property off the market and also will “freeze” the purchase price.
Before arriving in Spain, make sure that you have sufficient funds available. The best way to pay the reservation fee is by credit card. It is not advisable to pay by cheque, especially if drawn on a foreign bank account, as it can take approximately 14 days to be cleared at a Spanish bank. Such delay could cost you the loss of your property.
Private Sale and Purchase Agreement.
Within approximately 14 days of the signing the reservation agreement, a private sale and purchase agreement is to be signed between the buyer and the seller (or their authorized representatives).. It is a customary practice at this stage to pay approximately 10% of the purchase Price minus the reservation amount.
Notary – Title Deed / Registration.
A property sale is formally completed in Spain when the title deed (“Escritura de Compraventa”) is signed before a Public Notary in Spain, the final payment has to be effected and the keys of the property are handed over to the new owner. If you cannot be present at the completion, you can grant a Power of Attorney to your lawyer so that all necessary procedures can be completed on your behalf.
In addition to the purchase costs, there are typically further costs and taxes involved in a property transaction. Typical costs include Legal fees, Notary fees, and Property registration fees, please consult us.
Additional Formalities which you may require:
- Assign Power of Attorney to a Spanish Lawyer
- Apply for an NIE – Spanish ID number for foreigners. Your lawyer will be able to do this also.
- Spanish Bank Account. Your lawyer will be able to do this if you provide a power of attorney.