Buying Process for Property in Spain
First obtain an NIE number ‘Número de Identificación de Extranjeros’.
This is a unique tax identification number in Spain for anyone who isn’t a Spanish citizen. You will need your own NIE number to purchase property and pay necessary taxes! It is therefore advisable to apply for this as soon as you start looking for properties. You can get it in person in Spain or via a Spanish Consulate if you are not in the country, if you intend buying together with a partner, they will also need their own number.
Find a lawyer who is able to speak your language and has in-depth understanding of Spanish Property and Land Law.
Open a Spanish Bank Account.
Consider whether you need a Mortgage.
Sign the Reservation Contract ‘Contrato de Reserva’.
This expresses your intent to purchase, and removes the property from the market. In general, you will need to pay a holding fee of €6,000 to €20,000 depending on the market value. Funds are held by the lawyer, not the real estate agent, during a period of 2 working weeks and during this time, you can do the necessary checks on the property. At the same time, a purchase contract will be drawn up and legal checks carried out.
This contract is very important, don’t sign it without including provisions enabling you to exit if necessary.
Important Checks on Property.
The Land Registry, ‘Registro de la Propriedad’
Appropriate Planning Permission Obtained
No Outstanding Debts Attached to the Property
Community of Owners Documents
Property is as Described and Structurally Sound
Get Mortgage Confirmed if Required
Sign the Private Purchase Contract, ‘Contrato Privado de Compraventa’
You will need to pay your deposit, 10% of the property within 10 days. As soon as the necessary legal checks have taken place, you will be required to sign the private purchase contract which will state the full price of the property.
Attend the Notary for signing the contract for the property purchase
At the completion stage, all parties connected with the selling and purchasing of the property must be in attendance to sign at the offices of Notaria Publica. This includes your lawyer, mortgage provider (if applicable) and the seller or their legal representative. Before signing you should ensure you have a thorough understanding of all the costs involved and have sufficient funds to cover payments, fees and taxes.
Laws and regulations are subject to change, and so are the personal circumstances of each individual. This has been compiled as a guide for potential buyers of property in Spain, it does not seek to provide or replace legal advice which you should obtain from a qualified professional, nor is it intended to have any contractual effect.
The Golden Visa Programme is a special type of residence created especially for all the citizens from outside the European Union who want to move to the Spanish territory.
Most residency permits for non-Europeans have complicated procedures. Lots of paperwork, bureaucracy, and many requirements – too much effort to just get a visa. So much so, the visa for investors in Europe has been gaining popularity that does not stop growing.
Why? For the simple promise it makes: speed and simplicity.
The Golden Visa plan has experienced its most successful year on record according to the latest government figures. Since starting in 2013, the programme has raised almost 3 billion euros and shown an approximate growth of 45% year on year. Whilst the minimum investment required is just €500,000, the average investment being made by real estate buyers has been around €740,000. This reflects the fact that many applicants treat Spain as a residence and choose to invest for a home rather than simply investing at the €500,000 Golden Visa qualifying limit.
Not only is the Golden Visa Programme thriving, the property market as a whole has been showing significant signs of growth over the last few years. In 2018 the market showed a 6.2% annual increase in property prices according to the registered housing databases provided by the General Council of Spanish Notaries.
The information provided in this guide is intended for informational purposes only and does not substitute legal advice. The contents herein may be subject to errors, omissions and amendments. Accuracy is not guaranteed.