The Buying Process In Spain
First and foremost, you will be asked to provide contact details of the real estate agent or seller as well as the property’s location, size, purchase price, acquisition date and other details agreed with the seller or the real estate agent.
In case of a property purchase with inventory; an inventory list is made and sometimes photographs are taken so support the list. The inventory list will be signed by both buyer and seller, so as to best guarantee unnecessary surprises upon acquisition. If possible, make sure the property is checked the day before or the same day as deed signing.
Then a reservation and a purchase contract will be drafted. In order to prepare a purchase contract and a power of attorney, the following information must be provided: full name, address, position, marital status and whether you have joint or separate ownership and a copy of Passport, and for married couples each person’s first names (this must be used for the NIE number application).
To be able to purchase a property in Spain, it is necessary to have a NIE number (identification number). All persons signing the deed must have a NIE number. You can apply for this at your Spanish Embassy, or we can help you apply for it in Spain with a power of attorney from you.
The NIE number must be registered with Agencia Tributaria (the Spanish Tax Office. This must be done in person or by power of attorney).
With the above information, a reservation contract is drawn up on the property, which means that it is becomes reserved on the market. Here you will usually have to pay between 3,000 – 6,000 euros, depending on the price of the property, etc. The lawyer then reviews the property’s documentation to ensure ownership, outstandings, resident permit and owner’s association in the property, etc.
The cost statement of the price and costs regarding the purchase is usually sent as soon as all relevant documents in the case have been received and reviewed. You can then draw up a purchase contract where approx. 10% of the purchase price is paid, minus the reservation amount paid. This is usually signed within 10 – 15 days of the reservation contract.
The purchase contract specifies the last day of the deed signing, the possibly attached inventory list, and other agreement details that may need to be completed prior to the deed signing.
The remaining sum according to the cost statement, should normally be in the lawyer’s client account at least 5 working days before the actual signing of the deed. This is done as there must be time for the bank to issue a certificate, stating that the money has come to the country legally, and to prepare various bank checks for actual deed signing.
At the final notary meeting, the deed is signed. The outstanding sum is paid to the seller and the buyer receives the keys to the property.
Thereafter, the property must be registered and taxes paid, etc. It can usually take up to 3-4 months before the property is registered.
In addition to this, there will made be a transfer of utility contracts and change of ownership with the authorities etc. For this purpose, a Spanish bank account must be used for payment of the various utility contracts.
If you already have a Spanish bank account, you need to provide the bank’s name and account number, otherwise the lawyer can help you open a Spanish bank account.