If you are looking for a property in Spain, here is some information you need to know.

Process of buying:

Off-Plan
When you find the property you want to buy:

• Reserve the property-some companies will reserve the property for up to 2 months.
• Pay the reservation fee typically between €3000-6000 by cash or bankers draft within 14 days.
• If you wish, employ the services of a Abogado (lawyer). It is not a requirement in Spain although it is advisable.
• Open a Spanish Bank account
• Apply for an NIE ((Del Numero de Identification de Extranjeros) which is your non-resident identification number which enables you to buy a property in Spain
• The builder will advise you when you will be required to sign a purchase contract and a deposit – normally within 6-8 weeks of signing the reservation contract.
• Throughout the build you may be required to make stage payments but this will vary depending on the developers terms
• Start arranging for a mortgage if you require one.
• A few weeks before the completion date, you will be notified by the builder
• Day of completion, go to notary’s office with cash or bankers draft to sign and mortgage agreement. Pick up keys.
• Organise insurances

Buying a Re-sale Property
When you find a property you want to buy:

• Reserve the property – most agents can negotiate to hold the property for 2-3months
• Pay the reservation fee, this will vary but usually €3000-6000 
• If you wish, employ the services of a Abogado (lawyer). It is not a requirement in Spain although it is advisable.
• Open a Spanish Bank Account
• Apply for an NIE ((Del Numero de Identification de Extranjeros) which is your non-resident identification number which enables you to buy a property in Spain
• Organise a mortgage if you require one
• Pay a non-refundable deposit, often 10% of the purchase price often within 4 weeks
• Agree on a completion date and arrange with the agent to go to the notary
• Day of completion, go to notary’s office with cash or banks draft to pay remaining deposit and sign the deeds and mortgage agreement. Pick up keys.
• Arrange transfer of services to your name.

What are the additional costs?

Typically you should allow 10% of the property cost to cover expenses, this will cover IVA (property VAT) (currently 7% for new and resale properties and 16% on land), 1% for land registration fees, 1% notary fees and approximately 1% legal fees or a minimum of €1200.

If you take on a Spanish mortgage you should allow approximately 12% of the sale of the property which will include the opening commission typically 1% which is paid up front and the Land Registry fee of 1% for a second title deed which is kept by the bank until your mortgage is paid for.

Deposit
This will vary from developer to developer or if you are purchasing a resale property. You will in all cases be expected to pay a reservation fee.

If you are visiting Spain to view properties it is advisable to have the funds in place before you arrive so if you do find a property you love you can reserve it immediately to avoid disappointment.

Legal Fees
To be paid on completion.

Notary
To be paid on completion.

Land Registry
To be paid on completion.

Taxes
To be paid on completion within 30 days of the date of purchase.

The role of the Notary
When you purchase a property in Spain, the signing of the deeds takes place in the local Notaries office. The Notaries function is to oversee all legal proceedings. You will always find the Notary present to register wills, give power of attorney etc.

Bank Accounts
We can assist you in opening a Bank Account, all you need is a copy of your passport. You can pay for all your services water, electricity, community charges and council tax by direct debit through your account.

Mortgages
Should you require a mortgage and providing you can prove an income, it is usually no problem obtaining a mortgage in Spain. Spanish banks freely lend to non-residents. Typically non- residents can get up to 70% of the value of the property. Your bank may charge for a valuation to be carried out and a mortgage arrangement fee.

You should start arranging a mortgage a couple of months before completing. We can help you arrange a Spanish mortgage. The following should be supplied: a photocopy of your P60 or last three months salary slips, your last three bank statements or if you are self-employed, a statement of accounts for the last three years.

Running Costs

Community Charges
With most properties on an urbanisation you will have to pay a community charge to cover services like cleaning the streets, gardening etc. The amount will depend on the properties within the urbanisation and the community jointly agrees are required, this could be between £12-15 per month.

Rates
You will be required to pay property rates to cover services such as refuge collection and road sweeping. The rates will vary but can be as little as £60 a year based on an apartment.