The buying process
Find a property
On our web pages we continually add new properties. Have you found a home you would like to look at? Contact us and we will make an appointment for a viewing. You can also submit your search for a property in Spain to us. During a viewing, we offer you the opportunity to look at properties that you are interested in whilst getting acquainted with the area.
After the seller and buyer have agreed on the price, buyers usually pay about € 6,000 in booking fee as proof that you will complete the deal. This is the first step. Then the property is reserved and removed from the market. At the same time, a reservation agreement is established that states the deposit.
The Purchase contract is written within approx. 14 days from the date of the deposit. Then the remaining 10% of the property’s price will be paid to the seller minus the booking fee. The purchase contract specifies the date of legal transfer in the notary. If you do not complete the purchase because you have changed your opinion, the deposit will not be refunded.
The last and third stage of the purchase process will be the transfer of the Deed from seller to buyer in the notary. Then the final part of the purchase price is also paid, and you will have access to the property.
Legal assistance regarding property purchase
We always recommend our clients to hire a law firm, preferably an agency where they speak both Spanish and English. The law firm serves as an adviser and monitors its clients’ interests. This means that no surprises will occur at the time of purchase or afterwards. Your lawyer can answer both legal and tax issues and help with everything about your property purchase including important issues such as making of wills. The attorney helps to make sure that the property has all the necessary licenses and building permits, and that the property is free from mortgages and any debts. The attorney also helps in obtaining a NIE number, a Spanish identity number for foreign citizens necessary to purchase a property in Spain, and to open a Spanish bank account. If you do not know or have a lawyer, we can recommend you lawyers who have successfully helped our customers. The legal costs are usually 1% of the purchase price, but at least 1 500 € + Spanish VAT (IVA) of 21%.
All foreign property buyers need a Spanish identification number for foreigners, a NIE-number (Número de Identificación de Extranjero). The NIE number is required for all activities in Spain that have a financial impact, including buying a home, obtaining a bank account and paying taxes. A NIE number is acquired at a Spanish police station, at the Spanish embassy or at the English consulate. The easiest way to get a NIE number might be to get assistance from a lawyer who can do it for you using a power of attorney.
The Deed is registered in the land registry, which takes approx. 1-2 months. Once it is inscribed after all taxes and fees have been paid, you will receive it back with the Registry certificate. Once the Deed has been drafted, the registration is done in the property land register. Access to the property takes place on the same day of signing at the Notary (a notary public) when the Deed is signed by both parties. All parties involved prepare the case. If you do not have the opportunity to attend yourself, it is possible to give your lawyer the authority to sign on your behalf. Your lawyer will pay all taxes related to the purchase and take care of all formalities regarding the registration of legal expenses.
Notary public is an officially appointed lawyer who in this case has the task of controlling the process for both parties’. The notary does not check the condition of the residence, you as a buyer are responsible for checking the residence before you purchase the property and sign the documents. In Spain, the purchase of used homes is sold in “existing condition”. The notary informs about the property’s debts if there are any, and makes sure that the payment made to the seller is correctly made under Spanish law and that the seller has received the money before signing. The Notary also provides you with a new Deed, established between the vendor and you.
Investigation of property
As a buyer, you are responsible for carefully examining the property before signing the purchase contract. BEST HOME can recommend a number of talented independent engineering architects.
The price of our properties:
- The price of our Spanish homes is an accepted price of the seller. In Spain, it is unusual to have a bidding round. Instead, the seller deals with the buyer who is willing to pay the requested price or a lower price agreed after negotiation.
- When you buy a home in Spain, some costs are added to the purchase price. In general, you should expect an additional purchase price of approx. 10-15% depending on whether it is a used property or a new build.
- Used real estate: a total of 10-11% of which 8% of it is a transaction tax to the Spanish state.
- New production: a total of about 14-15% of which 10% is VAT (IVA) and 1.5% is a stamp duty tax.
- The rest is registration fees, notaries fees, stamp duty fees, NIE costs, power of attorney and lawyer fees.
- Contract connection fees and / or subscription fees for water and sewage, electricity and gas.
Property Tax, (IBI)
You do not pay any real estate tax in England for a Spanish residence, but in Spain you pay a municipal property tax based on the valuation value. The tax rate varies between different municipalities and is between 0.4-1.1%. You also pay a state property tax of approx. 0.25-0.5% which also assumes the value of the housing.
Collection fee, (Basura)
All property owners must pay a collection fee annually. Depending on the municipality, the annual fee is 80 -140 €.
Community fee, (Communidad)
A fee to cover the cost of maintenance of the property’s common areas, such as; pool maintenance, gardening, cleaning of stairs, electricity in public areas, water to pool etc. Each community decides on the basis of its costs, how much it will be. It can range from about 50 to 200 € / month.
Operating costs of electricity and water
The cost of electricity and water in your home in Spain depends, of course, on the type of accommodation you purchased and how much you use. Count about 75-150 € / month.
One should definitely have home insurance even if it is only a holiday home. There may be different problems and it is good to have insurance. Your bank or lawyer will help with this.
There are a number of different operators to choose from and also different types of service. You can either have a regular ADSL modem with a fixed phone number or a mobile internet. In most places, you now also have access to fiber, making it easy to stream TV channels. Count on paying 50-60 € / month for a regular subscription.
Most of the English channels have Play mode, where you can watch some programs from your laptop or Smartphone through the internet for free. The TV channel usually indicates on its web pages which programs can be accessed abroad.