It can both be very overwhelming and time-consuming to find the right property. We recommend quickly browsing the internet for properties offered in your desired area and directly contacting the local listing agent to establish primary contact. Established local agents will have the knowledge of available properties in the area and will be able to start working for you directly by sending you different prospects of interest. Once the estate agent has selected a few properties that have caught your interest, plan a trip to the area for viewings.
Please note that when you first get in touch with us, be as specific as possible about your requirements. Let us know: what area are you interested in, your maximum budget, the desired number of bedrooms, proximity to amenities/ airport, etc.
Should I arrange to view with one agent or various agents?
Many buyers seem to believe that they will benefit from going to various real estate agents in order to find a greater variety of properties for sale. This is not true, local established agents work closely together sharing properties with one other; this creates an extensive and similar portfolio of properties for sale for each agent. What is important is finding that one real estate agent that you trust and that you feel comfortable with, the rest they will take care of. Your trusted agent can arrange viewings of any property even though you might have seen it on another agent’s website.
Is there a certain time during the year that I should plan my trip to view properties?
Keep in mind that about 70% of holiday homeowners rent out their properties. This means that during the busy summer months and holidays homeowners tend to rent out their property. When properties are rented out it can be difficult to arrange viewings. Therefore we recommend avoiding peak summer months for traveling to Costa del Sol specifically for viewing properties.
What do I need in order to buy a property in Spain?
For Non Residents you need to apply for a NIE number (Foreigners’ Identification Number). This can be done at the local police station in Spain or at the Spanish consulates and embassies.
We also suggest you to:
– Open a bank account in Spain for direct debits for water, electricity, and any other fees related to your property.
– Make a Spanish will for Spanish assets. If there is an unfortunate death this will reduce costs and complications and speed up the closure of the estate. Your lawyer will arrange this for you.
– If you need finance and mortgage, please let us know and we will advise you on a selection of options.
I have found my dream property, what is the next step?
Reservation of the Property
When you have found the perfect property the next step is to put down a deposit. This is a Refundable Reservation Deposit of either €6,000 or €10,000 (depending on the selling price). This deposit is used to remove the property from the market while your agent negotiates the best price for you. When the price has been agreed upon, the deposit becomes un-refundable. The deposit is usually made to the estate agent until further instructions from your lawyer.
Buying Process Step 2:
Property Check
When the deposit has been paid your lawyer will immediately start to check all legal aspects related to the property. The lawyer will check there are no debts or embargos against the property, approve all property documents and confirm that the owner is the legal vendor. When all the checks have been satisfactorily carried out one move on to Step 3 in the buying process.
Buying Process Step 3:
Private Contract
Once the lawyer has confirmed that all the property details are correct the PRIVATE PURCHASE CONTRACT will be made and signed. This usually tends to be done approximately 20-30 days after the payment of the deposit has been made. When the private purchase contract is signed a 10% deposit would be paid. That is 10% of the selling price. The contract will state all the terms and conditions of the sale, as well as the final date by which the title deeds must be signed and final payment made. Should the buyer withdraw from the purchase, the buyer would lose the deposit. If the seller withdraws from the purchase, the seller would need to repay double the amount of the deposit to the buyer.
Notary
The last step is going to the Public Notary to sign the Title deeds.
At the Notary the balance of the sale price is paid to the seller/vendor and the keys are handed over to the buyer. The title deed/Escritura is signed in the presence of the Notary.
When the title deed is in the new owner’s name the lawyer will register the property in the local land registry.
There are three main purchase costs when buying a property in Spain, they are explained below. Agent fees are paid by the seller/vendor.
IVA/transfer tax
When you buy a Resale property the following percentage of IVA/transfer tax is applied:
• On the purchase of properties up to €400,000 the IVA/transfer tax is 8%
• On the purchase of properties between €400,000 to €700,000 the IVA/transfer tax is 9%
• On the purchase of properties above €700,000 the IVA/transfer tax is 10%
• When you buy directly from the Developer the IVA is 10%
Notary fees and Land Registry fees
The notary fees and land registry fees vary according to the size of the property and its value. For a property sold of €200,000 the notary and land registry fees go up to €1,500, and for a property of €400,000, the fees go up to 2,000€.
Lawyer fees
The lawyer fees are normally 1% of the purchase price.
