We simplify the process of buying and selling your property with complete transparency..
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.
Property Viewing Tour
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.
Tax & Legal Fees
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.
Getting the Keys!
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.
When you have decided you are going to put your house for sale, we recommend you to contact an agent who knows the area and the current prices. The real estate agent can make an evaluation of the house and get an adequate market value. You also have to consider if you are in a hurry to sell, or if you can wait to get the price you are asking, as that will reflect on the pricing.
When you have engaged an agent, you have to sign an agreement regarding the conditions of the sale, so there will be no misunderstandings; if the agency will have exclusivity on the sale, the final price, any special conditions for the sale, the agent´s commission, the services the agent will provide, etc. Normally the agent charges 5 % + VAT of the purchase price.
As a seller you need to make sure you have all the documents in place to avoid any problems before the completion of the sale.
The seller must provide a certificate of ownership and a so called First Occupation License or a certificate from the Urban Planning Office stating that the property complies with the urban planning law, an energy certificate is needed as well as information and receipts of paid taxes and other fees regarding the property.
For the last few years home staging has gained popularity also in Spain as it can help you to sell your property faster and for more money. Home staging is about making your property stand out, to de-personalize, rearranging existing furniture and accessories to create neutral and inviting spaces that buyers can envision themselves living in. Therefore, home staging does not have to be expensive, but well worth a try.
Rise Estate can recommend professionals in the area who provide these services, helping you to arrange your property to appeal to the widest range of audience possible.
After having set a price and prepared your home in the best possible way it is time to put your property out on the market.
Rise Estate will make your property visible on all our platforms, we will share the property with our collaborating agencies and contacts in our network. We take pride in always presenting accurate information, top class photographs and videos for your property to get the best visibility possible.
Rise Estate arrange for open house events for special invited agents, collaborators and investors to spread the information to as many actors in the area as possible. When it comes to personal viewings with interested buyers we always make sure that the people who wants to see the house really are prospect buyers and have a genuine interest in your home and have been given all the necessary information before-hand to avoid unnecessary visits.
In Spain you normally first sign a reservation agreement to take the property off the market. In a 2-3 weeks’ time the legal representatives of the buyer and the seller will draw up the purchase agreement and thereafter the completion will take place on a set date simultaneously with the signing of the title deed at a notary public and with full payment of the purchase price. 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.
After the signing at the notary office, the seller has to declare his capital gain to the Spanish Tax office. If the seller does not have his or her tax residence in Spain, the buyer is obliged to retain 3 % from the purchase price to pay directly to the Tax Administration as a guarantee for the seller to report the capital gain tax return. If the seller has made a loss you have to ask for repayment from the tax authorities and if you have had a higher gain than the payment on account you have to pay the difference. Deductible expenses are the costs related to the purchase and sale of the property. You can also deduct costs of improvements of the property. Therefore it is important that you provide your legal representative with all the invoices for deductible expenses in time. All costs have to be verified by official invoices to be accepted by the Tax administration.
A part from the capital gain tax the seller also have to pay a local capital gain tax, so called plusvalia, based on the taxable value and the years you have owned the property.
The estate agent normally charges a commission of 5 % + VAT.
The fees to your legal representative depends on your agreement. Normally Spanish lawyers charge 1 % of the purchase price+ VAT 21 % for the purchase, but normally with a minimum fee. Some lawyers invoice as per worked hours instead.