Buying a Property in Spain
So, you’ve finally decided that you are buying a property in Spain. You are going to make your dream into a reality.
That’s fantastic news! We could not be happier for you!
But now the questions start to creep in. Where do I start? How do I do it? Who do I speak to?
Don’t let the process overwhelm you – we are THE PROFESSIONALS and are here to help!
Luckily for you, we are experts in guiding people, like yourselves, through the processes of purchasing a property in Spain. If we had to guess we would estimate that 9 out of 10 of our clients live overseas and are people moving to, or buying a second home in Spain.
As a result, we have become experts with all the knowledge to make your dream of purchasing a property in Spain a seamless experience.
So, whether you are simply looking to buy yourself a new holiday home for the unbeatable Marbella summers, or you’re planning to relocate permanently, we can be your go to guide.
Below we have pieced together a step-by-step guide which forms the most common method of buying a property in Spain for you.
We understand that all of our clients, like you, will come with their own unique set of circumstances and needs. This is why we will always be available to guide you through the process - every step of the way.
It is very important to be aware of the costs. The costs to purchase a property in Spain are not cheap.
As a general rule to purchase a resale property without a mortgage you will require around 11 to 13% of the value of the property. This includes 8% property tax, 1% plus IVA for the legal fees, costs to obtain the NIE number notary fees etc. The costs vary according to the value of the property as there are minimum costs for a lower value property and also a scale for the tax based on a higher value property. If you require a mortgage, there are costs to set up the mortgage and taxes on this, which are around 2% in addition to the above fees, so it could be up to 15%. We can recommend banks for you to contact directly for mortgage options or put you in contact with mortgage brokers who have the best relationships with all the banks, which is without doubt the best and most efficient way.
Step 1 – Find the Perfect Property
There will always be thousands of properties on the market at any given time. Finding the right one to match your specifications can seem like a daunting task at first. But don’t let this put you off.
The benefit to there being so many available properties is that there will always be something out there for you.
The downside will likely be the time that it might take to find this perfect property. The phrase “finding a needle in a haystack” might sometimes spring to mind.
This is why working with someone who has expert local knowledge of the area you are looking in can be so invaluable.
Speak to the people who know – it will save you SO much time!
By choosing to work with Majestic Property, you would be choosing to save yourself the endless hours scrolling through properties online and reading the same copy pasted property descriptions over and over again.
Throughout our many years experience in real estate, we know that the properties that look the best online and that are highlighted as buyers ´favourite´ often end up not even being on the second viewing list. Some photos can be deceiving, either by looking great or awful and not truly reflective of the property. In our opinion it is of paramount importance to find the right location that suits you first and the property second.
By getting in touch with us by phone or email, and outlining exactly what you’re after in your new Spanish property, we will be able to bring the best available properties directly to you.
Step 2 – Viewing the Property
So, you’ve got in touch with us and we have drawn up a shortlist of amazing prospective properties for you. The next thing to do is view them!
Normally, this is the step where you would be buying that plane ticket and planning a holiday come viewing tour of your potential next home.
Concierge service for the ultimate experience
At Majestic Property this is by far our favourite step. We love to be able to offer you a completely unique concierge style service to make your trip to Spain as enjoyable as possible.
We can be as hands on or as hands off as you would like, but there is nothing we enjoy more than being able to meet up with new clients in person and really help you get to know the area.
That could mean meeting you at the airport and taking you to your hotel, then arranging dinner and drinks at the best spots known by locals.
We really want you to fall in love with the area as much as we have.
Remote viewings in the COVID era…
It is, however, 2021 and we are oh so aware of the difficulty that many people are currently having with travelling, as well as people’s health and wellbeing concerns.
That is why we also offer completely virtual tours of properties. These enable you, as a client of ours, to be able to see as many of the properties as you would like remotely. Whilst this is definitely no substitute for seeing and feeling the real thing, we endeavour to make our remote views as thorough and personal to you as we possibly can.
Step 2.5 – It’s Time for Things to get Legal
When purchasing a property in Spain it is certainly recommended to have a reputable and trusted solicitor working with you. This could be either your own or we can recommend solicitors who are property experts that have worked with many of our clients in the past. They are multi lingual, so you do not have to worry about conversing and understanding technical jargon.
The processes can seem a little complex at times, but we will be with you every step of the way to ensure that you understand exactly what is occurring and why.
Still serious? Get registered!
If you have reached this stage and you are still serious about buying in Spain, you should be aware that you are required to have a “Número de Identificación de Extranjeros” or NIE for short.
This is essentially a personal number that shows you are registered with the Spanish Authorities. Getting a NIE is a straightforward process generally and will just require some basic authentication of your personal documents. Without it, you will not be able to proceed to the next and most important step!
Step 3 – Buy, Buy, Buy
By now you’ve flown out to Spain. We’ve shown you the town, beaches, bars and most importantly the properties. You’ve found “the one”. Love at first sight (after a few bad dates beforehand). Now begins, the not so fun – but oh so important step of buying the property.
Reservations- but not for dinner this time.
The first step that you will take towards procuring the property will be to pay a holding deposit, which is usually about €6000. This will ensure that the listing for the property is removed from the market and you can begin moving forward with the process of buying, without fear or it being taken by someone else. This deposit will deducted from the price of the property at completion of the sale – don’t worry, it’s not a fee! During this very important first stage, the lawyer will check all the paperwork associated with the property, that includes, that the property itself is legal and built according to the planning permission, that it is built on legal land and there are no underlying problems and that the property itself is free of debts. Mortgages, if any, are cleared on the same day at notary, so that the property is free from any outstanding debts.
Contracts- a bit boring, but essential.
Following this, contracts will be drawn up and agreed upon by both parties (you can see why a solicitor is advisable now) for the terms of the sale. Usually when signing a contract for the purchase of a property in Spain an interim payment will be required of 10% for a resale property or 30% for a new build property. Although we should say that this can differ depending on the situation of each individual property, but 10-30% is a general guideline.
Once both parties have agreed upon the terms of the contacts and the sale is primed to go ahead there is one final step remaining.
The Title Deed will need to be signed in front of a notary and the remaining balance of the property will be paid to the seller (either in whole or through a mortgage lender).
Once this is complete the property is yours.
Step 1 – Again?
It took a little while, but we got there didn’t we.
At the end of all of this you can sit back and relax in the comfort of your new Spanish home.
We really hope that this basic guide has helped you better understand the process of buying a new home in Spain.
As we are sure you probably will have guessed there is a little more to each step than is actually included in this guide, but we wanted to just give you an overview.
If you choose to join us at Majestic Property, we will always make sure that you are fully aware of how we can proceed with each step of the journey in a way that you understand. We have been where you are stood now and understand that it can seem like a lot of work.
But believe us when we say it, this is a decision that you will never regret!
So the only thing left to do now is head back up to Step 1 and let us know exactly what we can do for you!