To purchase real estate in Spain, it is important to understand the basic procedures and requirements to ensure a smooth and safe buying process. Although the entire procedure can be quite complex, by choosing us, you can be confident that the process will not cause you any inconvenience. Our team ensures that the process is smooth and successful. Each step is important to protect your investment and ensure no legal or financial issues arise in the future. Key Steps:
- Obtain a NIE Number: The NIE (Número de Identificación de Extranjero) is a unique identification number required for all foreigners wishing to carry out financial transactions in Spain, including real estate purchases.
- Choose a Property: Select the desired real estate property. Contact our team, and we will provide potential properties that match your needs. This can be done remotely or through a personal meeting.
- Perform Due Diligence: It is important to conduct a thorough property check, including its legal status, mortgages, debts, and other obligations. Our lawyers will handle these procedures.
- Make an Offer and Preliminary Contract (Contrato de Arras): After choosing the property and agreeing on the price, a preliminary contract (Contrato de Arras) is made, specifying the purchase conditions. Usually, a deposit (about 10% – 30% of the property price) is paid, ensuring the seller’s commitment to sell the property.
- Secure Financing: If you need a loan, our financial specialists will help you obtain bank financing conditions and arrange the necessary documents. This process can take several weeks, so it’s important to start early.
- Purchase-Sale Contract (Escritura de Compraventa): After verifying and preparing all documents and/or obtaining financing, the final purchase-sale contract is made and signed in the presence of a notary. The notary verifies all documents and ensures the transaction is legal and transparent.
- Registering in the Property Register (Registro de la Propiedad): After signing the final contract, the notary submits the documents to the Property Register to officially register the property in the buyer’s name. This ensures you become the legal owner of the property.
Tax Payment Buyers must pay various taxes related to real estate purchases, including:
- VAT (IVA) or Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP): If buying newly built real estate, you will pay VAT of about 10%. If it is a second-hand property, you will pay transfer tax, which ranges from 6% to 10%, depending on the region.
- Notary Fees: Fees for notary services.
- Registration Fees: Fees for registering the property in the Property Register.
- Legal Fees: Fees for the lawyer’s work.
The total amount of mandatory taxes is about 12-14% of the property’s value. Property transfer – after completing all formalities and paying taxes, You become the legal owner of the property.