These are the stages involved so you can get an idea of it.
First of all, you will need to be identified to the Spanish government and open a bank account.
You will then need to arrange the finance, if you need it, and whether to do it in Spain or in your own country. We can offer you options regarding foreign loans, if you wish.
Buying a property in Spain is much quicker than in France, for example.
We will go through the buying process for you, in broad strokes.
Once the customer has given us the details of what he wants and after we’ve defined it with him/her – perhaps modified it too – and revised the budget, it can take a few days, weeks at the earliest or three months on average to find what we’re looking for.
As for the rest, it’s a matter of looking at your property options and selecting the one that’s best for you, then taking a good look at its condition.
You’ll need to check the physical condition of the property, as well as the building, examine the ownership documents, and check the situation in the land register.
If the deal goes through and the proposed property remains a good option, you will need to take the next steps to become the owner.
The notary in Spain is only supposed to check the circumstances surrounding the signing of the deed, but does not research further details about the property itself.
It is therefore a lawyer who must carry out this research into the condition of the property.
With us, you will have a lawyer at your side to research all the conditions of the property. A lawyer is essential when buying in Spain. We will carry out all the necessary checks: identity of the owners, absence of debts and charges, conformity of the description of the property in the public registers, urban planning situation, as well as the condition of the building.
Signage or contrato de señal
Once the property appears to be what we are looking for, we will be asked to sign a signage contract or contrato de señal.
You will have between 2 and 5 days to accept or reject the offer. In practice, visits to other possible buyers should cease.
If your offer is not accepted, the 1% deposit will have to be repaid. If the purchase is still in progress, the sum will be deducted from the sale price.
The signalition contract is customary but not essential.
The purchase agreement or contrato de arras
This does not mean that the previous signalling contract is out of the ordinary, quite the contrary. The contrato de arras (deposit contract) is signed between the buyer and the seller. It is the equivalent of a preliminary sales agreement, guaranteeing the transaction and paving the way for the signing of the deed of sale.
When it is signed, the buyer must pay a deposit of between 5 and 15% of the final price to the owner or the property broker. This sum will be deducted from the price of the property.
The deadline for signing the deed of sale will be set out in the contract, between 20 and 60 days.
This is the most commonly used form of compromise in Spain. It involves a commitment to buy and sell, but it can be broken.
If the buyer withdraws from the contract, he will lose the sum paid, whereas if the seller withdraws from the contract, he will reimburse the buyer double his deposit. This contract is based on article 1 454 of the Civil Code.
It is highly recommended that you sign this deposit contract, as it ensures that everything is in place until you sign at the notary’s office.
This is when the remainder of the purchase price must be paid.
Deed of sale or escritura.
The Spanish notary certifies that the sum has been paid, identifies the parties and witnesses the handover of the keys. Then, a few days later, the property is entered in the town’s Land Registry.
Within 30 days of the signing of the deed of sale, the property transfer tax (ITP) must be paid on the purchase, if it is a second-hand property.
What are the taxes and costs involved in buying a property?
The costs and taxes involved in buying a property are about 15% and vary from one Autonomous Community to another.
This is the main tax levied on the purchase of a second-hand house or flat. The percentage of this tax varies according to the Autonomous Community. In Madrid, the rate is currently 6%, one of the lowest in the country.
Estate Transfer Tax or ITP
This is the main tax levied on the purchase of a second-hand house or flat. The percentage of this tax varies according to the Autonomous Community. In Madrid, the rate is currently 6%, one of the lowest in the country.
Notary fees
The Spanish notary is paid according to a scale established by the State. These fees are lower than the notary’s fees in France, for instance, due to the fact that the Spanish notary’s duties are much more limited (checks on the property must be carried out by a Spanish lawyer, a role which in France is also carried out by the notary himself). The fees depend on the land, the square metres of the property and the sale price.
Generally speaking, the notary’s fees are payable by the buyer, but it could be otherwise.
Finally, there are also the land registry fees.
If the seller makes a profit at the time of sale from the previous acquisition of the property, he must pay the capital gains tax (la ganancia patrimonial) at the same time as the municipal capital gains tax (la Plusvalía municipal).
On the other hand, normally, the buyer will pay the property registration fees and notary’s fees. This expense could be shared between buyer and seller.
Property tax or IBI
This is property tax. In Spain, too, it is paid by property owners to the local council. Everyone who owns a property in Spain must pay it every year.
This is one of the checks to be made before signing the deed of sale: that the vendor is up to date with payment of IBI for the previous five years.
Now, if you’d like to ask us about the real estate products that are right for you, we’ll be delighted to help.