Frequently Asked Questions

What is the Buying Process in Spain?

Buying a property in Spain is relatively simple and can be done quickly and easily. All information about the property is held on the Title Deed and updated anytime there are any changes. Any debt on the property is recorded on the Title Deed as are all the owners so we can very easily check that the property is legal, debt free and able to be sold. The sale can be completed in a matter of days if both parties agree however the average time from deposit to completion is between 6 to 8 weeks.

Step 1. Reservation

When you have found a property you want to buy the first thing will need to place a reservation deposit. This can be anything from 5.000 – 10.000 euros, depending on the purchase price. This deposit is accompanied by a reservation contract which states the names and identification numbers of the buyer and seller, the agreed sale price and any conditions that have been agreed concerning the purchase. When a property is reserved it is taken off the market and cannot be offered for sale to another buyer.

Step 2. Private Contract

When our lawyer is satisfied that everything is in correct order the buyer and seller will sign a private purchase contract (contrato de compraventa) and the buyer will pay a 10% deposit With this contract, the buyer and seller enter into a legally binding contract and agree the date for the final transfer of the property from seller to buyer. At this stage neither party can withdraw from the sale without incurring significant financial penalties if the buyer decides to withdraw from the purchase they will forfeit the whole deposit and if the seller withdraws they will be obliged to repay double the deposit amount to the buyer.

Step 3. Completion

Completion takes place in front of a public notary and is when the full amount of the purchase price less any deposits is paid. The Title Deed (Escritura) is and we will register the property in your name at the local land registry. At this stage you will receive the keys and all relevant documentation and the property is yours.

 

If you are buying the property without a mortgage and you are able to move quickly it is possible go straight to completion as soon as the Lawyer has carried out the necessary checks.

What are the Costs of buying a property in Spain?

The following is a summary of the fees and taxes that a buyer can expect to pay. When purchasing new property directly from a developer IVA (VAT) on new property is 10%.

 

When purchasing a re-sale property from another owner the transfer tax (ITP) will be as follows:

Government Taxes: Tax due 10% on the purchase price

Legal Fees: In addition to the government taxes you will need to budget approximately 2% of the purchase price to cover, Notary fees and stamp duty.

What Documentation do I need in order to buy a property in Spain?

If you are an EU citizen but non-resident in Spain the Spanish government requires you to obtain a certificate of non-residency, which in turn determines your fiscal number, This is obligatory in order to purchase a property, contract for utilities etc. This document is known as an NIE number and can obtained from the Local main Police stations. You can apply in person or we can obtain it for you. You will also need to produce your passport.

Do I need to come to Spain to complete on the property?

No, you can give the lawyer Power of Attorney to sign the compraventa and title deed on your behalf. The PoA must be signed in front of a Spanish Notary, we can help you with this.

Do I need to use a Lawyer to buy a property in Spain?

We at Home Invest have a Lawyer, D. Juan José Viota Marta, at you service without any extra cost. He works in your interests and will give you the security and peace of mind that you are buying trouble free legal property (guaranteed by the Colege of Real Estate Agents, API. Nº 572). He will check the licences, ensure there is no debt on the property, check that the community is solvent and that all fees including electricity, water and community fees are paid up to the day you take ownership. He will also change all the utilities and services into your name.

 

In addition he can help with tax and inheritance issues and advise you whether it would be better to do the purchase in your own name, that of a UK or Spanish company or even for inheritance purposes in the names of your children.

Can I Buy My Spanish Property with a mortgage?

Whilst the Spanish banks are still cautious about mortgage lending there is a wide choice of lending sources and products that are available. The Spanish banks will give foreign nationals up to 70% of the purchase price (subject to status) and some developers will offer up to 90% on new property.

 

If you are interested in financing your new home with a mortgage please contact us for information about current terms, conditions and requirements of the various Lenders.

Can I negotiate on the purchase price and conditions?

When you have found a suitable property we negotiate with the seller on your behalf to agree the purchase price, inclusions and terms and conditions of sale. We do everything possible to secure the sale for you at the price and time scale you are comfortable with.

 

If you are interested in financing your new home with a mortgage please contact us for information about current terms, conditions and requirements of the various Lenders.

Do I need to open a bank account in Spain?

You will need to open a Spanish bank account as any charges for your property – electricity, water etc. are paid monthly by direct debit. Opening a current account is straight forward and normally all that is required is a passport and a small deposit to the account. We can help you open an account in your local branch. Many of the major banks have multi-lingual staff and offer internet banking in your language.

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