Buying property in Spain might seem straightforward, but it often involves complex regulations, taxes, and unexpected challenges, especially for foreigners. Our agency is here to make it easier.
We don’t just facilitate transactions; we ensure a seamless and transparent journey towards acquiring your dream property in Spain. Our comprehensive understanding, detailed guidance, and commitment to transparency eliminate the hassles and hidden surprises, allowing you to enjoy the excitement of purchasing your luxury property with complete peace of mind.
There are still a few steps ahead of you on the way to the purchase.
- Obtaining an NIE number and opening a bank account
NIE (Número de Identificación Extranjeros) or Foreigner Identification Number is necessary to register as a property owner and pay taxes. It is not necessary to have a Spanish account at this stage. You will need to open a local bank account at the latest before signing the deed.
- Negotiating the price
Spaniards like to negotiate (and not necessarily in your way). It is important at this stage to know the “real” market price of the property. We offer full support in the negotiation process. We know the realities of the market, so we know what a “fair offer” means.
- Mortgage and official valuation of the property
If you plan to purchase with a mortgage, you can count on financing 60-70% of the purchase price. This 60-70% will be calculated on the purchase price or on the official valuation (with the lower amount always taken into account). Usually, the bank suggests its own specialists, but you can also hire a specialist yourself. We cooperate with many banks and appraisers and can, of course, help you find the best deal.
- Reservation and deposit
Once you have agreed on a price with the seller, you will sign a reservation contract (Contrato de Reserva). This document is a confirmation of the agreed price and general conditions of purchase and will withdraw the property from the market.
- Documentation and notary contract
Before visiting the notary, you should prepare all required documents and make sure that the property has no legal or physical defects. At this juncture, you will definitely need the help of an experienced real estate agent or lawyer.
- The property is yours!
Here ends the buying process – you become the owner of your dream property, but there is one more important step ahead of you…
- Property registration and taxes
After signing the Deed of Sale, you have a maximum of 30 days to pay the real estate transfer tax (for the secondary market) or tax on civil actions (for the primary market). Only after this payment has been made will the Registro de la Propiedad (or Land Registry Department) register you as the new owner. Usually, the process of registering the new owner is conducted by an administrative agency, weighed against the Notary.
When purchasing property in Spain, several additional costs are incurred beyond the purchase price:
- ITP (Impuesto de Transmisiones Patrimoniales or Property Transfer Tax) for second-hand properties, with rates varying by region. In Catalonia, for instance, the rate is 10%, with an increased rate of 11% applied to any amount exceeding €1 million
- IVA (Impuesto sobre el Valor Añadido or Value-Added Tax) for new properties, set at a uniform rate of 10% across all regions. Additionally, for properties bought on the primary market, an AJD (Actos Jurídicos Documentados or Tax on Documented Legal Acts) of 1.5% is levied
- Notary fees, which depend on the purchase price, typically range from €600 to €2,000
- Land registry fees, varying from €500 to €1,500
Therefore, you will usually pay an additional 10-12% of the sale price.
