The process of buying a property in Spain
In this article, we would like to give and explain you in detail, the typical steps of the process of buying a property in Spain for foreigners. If you plan to buy a home in the Costa Blanca region, we hope the information below is useful for you.
The process of buying property in Spain for foreigners: the first visit
In general, in order to choose and purchase a property in Spain, our clients, who live abroad, must visit the country twice. For the first visit, it is advisable to dedicate at least three full business days.
- Initial familiarization with the city and the region. If a potential buyer is already sure about the location of their future home, proceed to choose between a house or a flat. The choice is, as practice shows, the most difficult stage. The process is very personalized, since it depends, to a large extent, on whether a person is already clear about what they need and their ability to make decisions. Usually, this stage lasts between 2-3 days, in some cases up to 5 days.
- Sign a contract for the reservation of the selected property with our company, and pay between 3-5 thousand euros of signal, in order to reserve the property and withdraw it from the sale. This procedure takes one to two hours. For English-speaking buyers, the contract text is presented in English and Spanish.
- Open an account in a Spanish bank on behalf of the buyer (if necessary, on behalf of your spouse, etc., with the same rights for all). The following documents are required:
- Valid passport.
- Proof of income for the last 12 months, but better of the current and previous year, or a statement of income tax for the same period.
- Document proving the applicant’s employment status, which indicates the position he or she occupies, the salary and the period of work in this company or institution.For non-residents in Spain, it is necessary to present the Certificate of non-residence, which can be processed at the police station (comisaría de la Policía Nacional), at the Immigration Office and at the Spanish embassy or consulate, in the country of residence of the buyer.
- Buying property in Spain for foreigners: obtaining of NIE (Foreigner Identity Number) at the police station. If the duration of your visit in Spain allows you to do all the paperwork, once the NIE is obtained (it takes 5-6 days), you must register with the department of the local tax authority, which is necessary to pay annual property taxes in the future. However, registration with the tax authority can be done during your next visit to Spain.
After returning to your country
- Within 3 months, the remaining amount of the purchase price must be deposit into your bank account in Spain, which was opened here during your first visit.
- If the purchase is made through a mortgage, the corresponding amount is transferred to your bank account. For more information about mortgages in Spain, read the article “Mortgages in Spain for non-residents”.
The process of buying a home in Spain for foreigners: the second visit
- Signature of the public deed of sale at the notary. In the presence of a notary, the seller is paid the remaining amount of the house price (minus the amount paid as a reserve) by bank cheque, which is issued at the bank, immediately before the transaction or the day before. The issuance of a cheque takes between 15 and 30 minutes. Some part can be paid to the seller in cash. According to the law, the notary is obliged to verify the conformity of the purchase price.
The notary attach to the documentation, copies of all proof of payment.After signing the public deed at the notary’s office, the buyer becomes the owner of the property and receives the keys to the property.
If the purchase is made through a mortgage, at the notary’s office, simultaneously with the signing of the public deed, you must also sign the mortgage contract with the bank, which pays the seller a sum corresponding to the amount borrowed.
- Change of ownership of water and electricity bills, in the name of the new owner. If after signing the public deed, the new owner has to go to his or her country, our company takes care of all these procedures. It is recommended that the second visit last, at least, three business days to complete all the procedures.
During the whole process of buying a property in Spain, we offer our clients all the necessary assistance. These services are free, except for the change of ownership of water and electricity bills, in the name of the new owner. Nor do we charge any commission or fees for the organization and management of the buying and selling process. In Spain, the commission to the real estate agency is paid by the seller, usually from 3 to 5%, depending on the cost of housing.
All the stages of the buying and selling process can be completed during a single visit of the buyer to Spain, if the buyer has the necessary amount to pay the entire cost of the property, and can be in Spain for long enough to formalize all the procedures.
