Buying and selling process

How to buy a property in Spain

The buying and selling process of real estate in Spain is quite different from the process we are used to at home.

One of the main differences is the open market, which in practice means that we can arrange the purchase of almost any property offered on the Costa Blanca, even one that you may not have found in our offer. The price of such a property remains the same, no matter which agent you choose. Practically speaking, this can be a great advantage for you, as you don’t have to contact many different agents in the area.

Another very important key-point to remember is that in Spain, there are no defining regulations regarding the purchase of real estate; real estate agents are not required to be licensed, and are not legally liable for the sale.

What we don’t understand is that any debts, taxes or fees owed for the property are tied to the property, not to the seller!

Therefore, it’s very important to find a competent business partner that can provide high-quality legal services to protect your investment.

This helpful guidance by our real estate agency will make the entire process of finding your ideal house or apartment a lot easier.

First steps

After an agreement, we will arrange a tour of your preferred real estate, or a real estate that we have selected for you based on your preferences and requirements. We will proceed to book the property once we have found your ideal home together.

Upon signing the reservation contract, a deposit of at least 3,000 euros is made and the property is removed from the market.

NIE – Anyone purchasing real estate in Spain must acquire a Spanish identification number, the so-called NIE (Foreign Identification Number).

You can also obtain this number from the Spanish embassy in your country, or our lawyers will help you obtain it for you here in Spain.

The next step will be to open a bank account and, if necessary, apply for a mortgage with one of the Spanish banks. They can offer foreign buyers up to 70% of the property price, and up to 80% if you decide to apply for permanent residency in Spain.

Meanwhile, the solicitor will examine the obligations as well as the property’s legal issues. The property must be legally registered, sanctioned by the authorities, free of debt, and the seller must have the right to sell the house, among other criteria. The money will be returned to your account if there are any inconsistencies that cannot be resolved.

On the day of purchase

The purchase and sale contracts are signed directly with a notary, who blocks your reserved property in the land register right before this procedure.

In fact, a notarial deed serves as the contract of sale. By signing it, you automatically become the owner of the property, given you have provided the notary a check in the seller’s name for the agreed amount. The bank will issue this check on the day you have signed the contract. You will be leaving the notary with keys and a temporary title deed in your hand.

Finishing the buying process

First and foremost, we will register the energy, complete tax filings, obtain insurance, etc. All payments will be deducted from your account automatically. If you’re interested, we can also assist you with internet and TV setup. We provide you a legal certificate, known as a VT number, if you intend to utilize your recently purchased property for tourist rental.

Within 2-4 months, you will receive an original title deed (Escritura de Compraventa). After receiving the deed, we will arrange a meeting in the office of our lawyer to settle accounts related to the purchase. In general, 12-13% of the purchase price might be expected. This includes 10% state tax, registration fees, notary, costs associated with the issuance of a power of attorney, legal representation, and costs related to the NIE.

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