The Spanish property market can be tricky for the inexperienced and things do not always work as home. Therefore it pays off to do your research before starting to look at specific properties. You need to think about what kind of property you would like to buy, your wish list and must-haves, what kind of laws and regulations apply and so on.

 If you need to finance your purchase, you need to check if you should take a loan in a Spanish bank with a mortgage on the property or arrange for finance in your home country.

You also have to consider the purpose of the property. Are you going to use it as your permanent home, for holidays, and investment to renovate, to rent out etc. A good start is to write down your wish list for your future home and your must-haves. What kind of property, location, price range, do you need a view, in the city centre or near the beach, on the countryside, new development or resale and so on.

After having done your research and you know more or less what kind of property you would like to buy, we recommend you to contact several real estate agents for advice until you find one agent you like and feel you can trust. It is important to remember, that in Spain almost all agents have access to the same data base and collaborate with other agencies. You can therefore engage the same agent to help you all the way.

At Rise Estate we guide and help you to find the right property that fulfils your needs we prepare as many visits you like, to visit properties until you find your dream home. We can also recommend you a hotel where to stay during your visit in Spain, or if you prefer to rent a property meanwhile.

It is important to remember that the purchase process in Spain is different from many other countries. We always recommend the buyer to engage a legal representative to help you with all documents needed as to avoid any unforeseen costs or unimaginable problems. In Spain, normally both the purchaser and the seller are represented by a legal representative to help out with all paperwork and to draw up the agreements. 

It is also important to discuss with your lawyer how you are going to arrange the ownership of your property – are you buying the property by yourself, are you married, do you have a pre-nuptial agreement, any children, etc. 

If you are going to apply for a mortgage, it is essential to inform your legal representative as there are some paperwork that has to be prepared simultaneously with other legal documents.

When the buyer and seller have reached an agreement, the parties usually sign a reservation document and the purchaser pays a deposit, normally to the estate agent. The property is taken off the market and the purchaser gets some time, normally 2-3 weeks, to do the introductory due diligence.

The legal representative of the buyer verify the title deed of the seller, that the registered data corresponds to the information given by the seller, that all permissions are in place, that there are no debts or incumbrances on the property or with the Community of Property Owners, etc.

After the legal due diligence, the legal representatives of the buyer and the seller draw up a purchase agreement based on the circumstances in each case; purchase price, completion date, any other special conditions and so on. The buyer pays a down payment when signing the contract, normally 10 % of the purchase price when it comes to resale properties. If you buy directly from the developer you can make several down payments during the construction. If you buy a new development under construction several certain regulations apply to protect you as a consumer and it is important to check that the seller complies with all of them, has all permissions in place and valid guarantees for the down payments.

When the contract is signed it is time to organize all practical details before completion, when to buy the plane ticked, where to stay the days before completion, etc. Maybe you would like to order a transport for the furniture and other practical arrangements.

To be able to purchase any property in Spain, you need a Spanish identification and tax number for foreigners, so called NIE Number. Your legal representative can help you with the application if you do not want to do it yourself. For this the lawyer will need a Spanish power of attorney which has to be signed before a notary public. If you do not have a bank account in Spain, you should arrange for the opening of an account as well.

You also need to plan all other relevant issues before completion, if are you going to be there in person or give a power of attorney to your lawyer, make sure the finance is in place and prepare the transfer of funds to Spain. Today there are several regulations regarding money laundry you have to take into account, so talk to your bank to make sure if there are any preparations to be made before you can arrange for the transfer of funds.

The completion takes place when you sign the “official” purchase contract, the deed, escritura de compraventa, in front of a notary public and with full payment of the purchase price. Normally the payment is made with a Spanish bank cheque (banker´s draft). Both the seller and the buyer have to be present in person, or give their legal representative a power of attorney to sign on their behalf.

Your legal representative normally assists you after completion to register the purchase, sign the agreements with the electricity and water companies, the Community of Property Owners and register direct debit for the local property tax and other payments needed.

Usually you can pick up the deed at the notary office a few days after the signing and thereafter file it at the Land Registry. When you present the deed at the Land Registry you have to pay all registration fees and taxes. The registration procedure takes about 2-3 months in total.

The costs for purchasing a property in Andalusia are as follows:

Resale properties: The Transfer tax has been set to 7 % for all properties since year 2021

New developments: VAT 10 % + stamp duty 1,2 %

Fees to the notary public and Land registry, about 1-2 % of the purchase price

Fees to your legal representative, depending on agreement. Normally Spanish lawyers charge 1 % of purchase price+ VAT 21 % for the purchase (extra can apply for the NIE-number, for example), but normally with a minimum fee. Some lawyers invoice as per worked hours instead.

In general, you can expect the total costs to arise to approximately 10-12 % for resale properties and 10-14 % for new developments.

After signing the title deed, you will get the keys and you have access to your new home. If you are not present at the moment of the signing, Rise Estate can hold the keys for you until you arrive. We can also help you to arrange for cleaning or recommend companies for renovations, buying furniture or other arrangements.