How to buy a property in Spain? A Practical Guide for Buyers

Citizens of European Union (EU) countries often ask how to buy a property in Spain. Below you will find information how to go through the process without any obstacles. Once you are informed and start the process of buying a property in Spain well prepared, such a purchase will not only offer the opportunity to live in a picturesque location, but also the chance for a profitable investment. Spain, profits significantly from international tourism, which further increases the investment potential of real estate in the country. Interest in buying property in Spain is growing, especially among EU citizens who see attractive investment opportunities in the country.

List of questions to ask yourself before you start your search

Before starting your search, it’s a good idea to answer some key questions:

• Can I buy a property in Spain?
• What are the costs associated with buying a property?
• What paperwork needs to be completed?
• Will I need a mortgage?

Choosing a location and real estate agency

How do I search for property in Spain?

The first step to buy a property in Spain is to browse the listings available on the Internet. There you will find hundreds of offers for apartments, villas or plots of land, which are often sold at different prices depending on the agency. It is important to contact agents to get detailed information about the properties you choose. Make sure the agent is listed in the register of real estate agents, which increases the security of the transaction.

Is an agency a must?

Working with a professional, registered real estate agency in Spain makes the buying process much easier. An experienced agent will help with the paperwork, and working with a lawyer familiar with local regulations will ensure the legality and safety of the transaction. Professional real estate agencies will ensure the legal security of the transaction, which is key to avoiding problems when buying a property.

Financing when you buy a property in Spain- is it possible?

Yes! When planning the purchase of real estate, it is worth considering the price of the property and the additional costs of 10 to 15% of the value of the property, which include taxes and notary fees. You can finance the purchase with your own funds, a private loan or a mortgage.

NIE number – neccessary when buying a property

A tax identification number (NIE) is necessary to finalize the purchase of a property. It is required when signing the deed and settling taxes related to the transaction. Obtaining the NIE number is crucial for finalizing the transfer of ownership, which further emphasizes its importance in the purchase process. You can find more information on NIE number here.

How to finance a property purchase in Spain?

Buying a property in Spain can be financed in several ways. One of the most popular is a mortgage, which can be obtained from a Spanish bank. A mortgage typically covers up to 60%- 70% of the value of the property. Moreover, the repayment period can be as long as 20 years. Alternatively, those with sufficient funds can opt to pay in cash, which can speed up the buying process. It is also worthwhile to use the services of real estate agencies, which can help find a suitable property and advise on financial matters.

Real estate value in Spain

What affects the value of real estate?

The value of a property in Spain depends largely on its location. Spain is divided into autonomous communities, which have their own tax laws. In addition, the cadastral tax, which differs from the Polish tax system, must be taken into account.

How to assess the value of property in Spain?

Assessing the value of a property in Spain is a key step before making a purchase decision. It is advisable to use the services of a real estate appraiser, who will assess the value of the property, taking into account it’s location, size and other relevant aspects. In addition, real estate agencies can provide valuable information on the value of property in a particular region, which will help you make an informed decision.

Formalities when buying a property in Spain

The process of buying a property involves three types of contracts:

• the reservation contract (Contrato de Reserva)
• the preliminary contract (Contrato de Arras)
• notarial deed- the actual sales contract, which is the key document in the process

To avoid problems, it’s worth planning the entire process well, including all the costs associated with the purchase that must be settled before the deed is signed. The property deed is the key document that confirms the transfer of ownership to the new owner.

Buying a property in Spain – the 10 most common mistakes

Avoid common mistakes, such as:

1. Not checking property documents.
2. Failure to check legal status.
3. Not checking technical condition.
4. No planning for additional costs.
5. Rushed decision without a full analysis of the location.
6. Trusting unverified real estate agencies.
7. Lack of lawyer support when signing contracts.
8. Choosing a property not meeting your needs
9. Skipping tax procedures.
10. Not knowing local laws and regulations.
11. Being unfamiliar with the procedures when entering into a real estate acquisition contract.

Spain’s real estate market

How does the real estate market work?

Spain’s real estate market is dynamic and depends on economic, political and demographic factors. The country’s legal system provides protection for both buyers and sellers.

What affects the Spanish real estate market?

Spain’s real estate market is dynamic and influenced by many factors. The country’s economy, politics and demographics play a key role in shaping the market. Economic growth and its improvement can increase demand for real estate, which in turn leads to higher prices. Political and legal changes, such as regulations on the purchase of real estate by foreigners, also have a significant impact. Lastly, demographic changes, such as an aging population, can increase the demand for properties suited to seniors.

Purchasing property in Spain – practical tips

How to avoid dishonest agencies?

To avoid scams, check that the real estate agency is registered in Spain. It’s also a good idea to read reviews about the agency on social networks. It’s also worth reading reviews in which buyers recount their experiences.

Cooperation with a translator and a lawyer

Hiring a lawyer and a certified translator will help avoid mistakes related to the language barrier and legal complexities. On top of that, it’s also a good idea to make sure document translations comply with Spanish standards.

Additional information

Opening a bank account

While it is not necessary to have a Spanish bank account to purchase a property, it will be necessary when taking out a mortgage and making local payments.

Document translation

When applying for a mortgage, banks may require documents translated by a certified translator.

Summary

Buying a property in Spain can be a complex process, but proper preparation will help you avoid mistakes. Therefore, remember to check the property’s documents, legal and technical status. Working with a professional agency and a lawyer will ensure a safe transaction and allow you to enjoy your dream home in Spain.