Step 1: Opening a bank account in Spain
In any case, when buying real estate in Spain, you will need to open a bank account.
Step 2: Preparing an offer to purchase and making a deposit
Once you have found a property you like, the realtor will prepare an offer to purchase on your behalf. This offer is a standard contract drawn up by our agency.
The contract will specify all the terms on which you offer the seller to conclude the deal.
In the case of a mortgage loan, the documents for obtaining it are submitted to the bank only after signing the reserve.
If the seller accepts the offer, the money stays with the seller. If he does not accept your offer, the deposit is returned.
Step 3: Signing the sales contract and making the deposit
If the seller accepts your offer, a reserve contract for the purchase of the apartment is signed, specifying all the terms of the transaction, the amount of the sale, the deposit, the terms of the sale, the terms of the appraisal of the property, and a specific deadline for finalizing the transaction.
Some points in the contract are worth paying attention to.
For mortgages:
– there will be a real estate appraisal, which requires additional costs
– additional costs involving the opening of a mortgage account, real estate insurance and mandatory life insurance for mortgage loans
Prices will vary depending on the appraisal of the home. Most often all additional costs are borne by the buyer.
The minimum reserve – 3000 euros, the maximum – can reach up to 10% of the value of the apartment.
Deposit – confirmation of the seriousness of your intentions to buy.
Documents for the conclusion of the contract of sale
– Copy of passport
– A valid visa in Spain or residency
– NIE, foreigner identification number.
Step 4: Carrying out a check of the property and its additional assessment
Formalization of the transaction on average takes from 14 to 60 days. During this time, the preparation of documents for the purchase and sale transaction is carried out. An independent appraisal of the apartment can be carried out for a fee.
At the same time is the execution of a mortgage loan if you attract bank financing.
Step 5: Carrying out the sale transaction
The signing of the contract of sale takes place at the notary. The notary certifies that there are no debts or outstanding obligations of the apartment owners.
Step 6: Payment of the transaction
The main amount is transferred by the buyer in the form of a check and cash. All additional costs, including taxes, are paid at the same time.
Please note! When bringing cash into Spain, the amount not requiring a declaration is 9,999 (nine thousand nine hundred and ninety-nine) dollars converted into euros. This amount is not taxable in Spain. It is advisable to bring with you documents about the origin of the money. For example, a contract of sale of an apartment in the country of residence.
Step 7: Registering the new owner
At the time of receipt of the contract of sale from the notary office responsible for the transaction, the buyer receives a bill of sale, which he submits to the Registry for the registration of the right of ownership.
Registration of ownership takes from 4 to 12 weeks. In cases with a mortgage, it can be longer.
Can the transaction be done remotely
Yes, you can. To do this, you can execute a power of attorney for a trusted person in our agency in your country of residence. Our lawyer will send a special power of attorney form to the buyer by post.
The risks in this situation are virtually nil. Unscrupulousness of the transaction may lead to the loss of our firm’s license. Therefore, the buyer can be confident in the legality of the operation.
Example of calculating the costs of buying real estate in Spain:
– object price
– one-time tax on the purchase of real estate (10% of the value)
– agency fee for checking the cleanliness of the transaction
– fee for opening a bank account
– in the case of mortgages, fees for mortgage formalities
– notary services
– agency fee for the transaction
– registration office fees