Buying a property in Spain
This guide describes 8 easy steps to buying a house or apartment in Spain.
Contact an estate agent in Spain.
Finding your dream home becomes easier when you hire the right estate agent. If you choose to hire Bjurfors, we can present you with a wide selection of properties based on your needs and wishes. We have good relationships with other companies and organisations involved in the real estate market. This means that we have access to more or less all properties available on the market. It doesn’t cost anything to receive help from us. We guide you through the entire process without charge.
Think through your financing.
Before you even start searching for a property, it is a good idea to plan the financing of your purchase. This enables you to act quickly when the right property becomes available. You can expect to be able to borrow between 50 - 70 percent of the property’s market value in Spain (in euro). We can put you in touch with a bank that can arrange the right financing structure for your situation.
Go to viewings, choose a property and make an offer.
When you have found the property you want, it is time to make an offer. As a potential buyer you will typically make an offer that is below the asking price, after which you can commence negotiations with the seller. There probably won’t be a bidding process involving several potential buyers, as you are likely to be the sole bidder.
Hire a legal representative.
Almost all property buyers in Spain have a legal representative. This is particularly sensible for you as a foreign buyer. The legal representative will safeguard your interests throughout the entire process. The legal representative checks the property register, makes sure that the property is not encumbered by existing loans or easements, confirms the identity of the owner and that there aren’t any unpaid debts, and appoints a notary. To be registered as the owner of a property in Spain, you must have an NIE number – número de identificatión de extranjeros. All of this is included in the fee charged by your legal representative. The legal representative will also help you to arrange subscriptions for electricity, gas and water, as well as a good home insurance policy before you move in. We have many well established partnerships and can recommend a good legal representative. Some of our offices even have their own legal specialists whom you can hire to represent you if you wish.
Inspect the property.
When you buy a property, it is important that you inspect it thoroughly before signing the contract of sale. We recommend that you hire professional help for this purpose, and we can put you in touch with reputable and qualified technical inspectors. A property is sold “as is” (i.e. in existing condition), and it is difficult to claim compensation or rectification for defects that are identified after the contract has been signed. Your legal representative will check the legal aspects of the property for you.
Sign the contract of sale and pay the deposit.
When you have reached agreement with the seller, you sign a preliminary contract before you sign the actual contract of sale – Contrato de Compraventa. A deposit must be paid when you sign the contract of sale. The deposit is usually 10 percent of the purchase price.
You receive the keys when you are at the notary and are then free to go home and enjoy your new property.
Sign the title deed and pay the remaining amount.
On the possession date, you, the estate agent, the seller and your respective representatives meet at the office of the notary. It is at this meeting that the bill of sale - Escritura Pública de Compraventa - is prepared and signed. If you are unable to attend the meeting in person, your legal representative can represent you through a power of attorney. You pay the remainder of the purchase price (usually 90 percent, depending on the size of the deposit you paid earlier), as well as property transfer taxes and a notary fee. The notary cancels the old loans and processes the registration of any new ones. The notary then transfers the purchase amount to the seller and pays the taxes, legal fees and mortgage fees. You receive a certificate of ownership for your new property.
Move in.
You take possession when you take over ownership of the property. You receive the keys when you are at the notary and are then free to go home and enjoy your new property. If any further questions or issues arise, the team at Bjurfors is here to help you. We also have many valuable contacts who can provide you with assistance after you have moved into your new home.
