Funding and preparation
Please be in good time with how the purchase is to be financed. It is a good idea if, even before you start looking for a home, you review how the purchase will be financed. Then you can act quickly when the right home appears. Good to know is that there is an option to take out a mortgage in Spain, where you can normally mortgage up to 60% – 70% of the market value of the property. We can help you get in touch with a bank that will find the right arrangement for you.
Communication
Through clear communication and based on a thorough analysis, we will send you various property proposals that match your wishes and criteria. In this way, we collaborate to identify which propertys seem interesting for upcoming viewings.
Viewings
Our goal is that you get to see exactly those dream homes according to your expectations and this by having understood your needs and wishes.
We suggest going to around five property viewings in one day. More than that can overwhelm you and cloud your judgment. If you are here on a short trip, we can squeeze in more viewings, but ideally we do it spread over several days. Then we go through the homes we have looked at and you can ask any questions and concerns you have, and if you want to look at one or more propertys one more time before making a decision, we will book additional viewings.
Legal representative
When dealing with purchase a property in Spain, we advise both buyers and sellers to use a legal representative, who can support you through the entire transaction. Your legal representative ensures that you make a safe purchase by guarding your interests throughout the transaction.
The legal representative examines the land registry, verifies that the property is not subject to old debt or binding provisions, verifies that the owner is who they claim to be and that no fees are unpaid and other expenses that may be present in the home purchase.
In order to be registered as the owner of a property in Spain, you need a NIE number – número de identificación de extranjeros – Spanish social security number and a Spanish bank account.
Furthermore, the legal representative will help you order subscriptions for electricity, gas and water, and well-founded home insurance before you inaugurate your new home.
We have a number of established collaborations and can give you recommendations for good legal representatives.
Additional costs and taxes
When you buy a property in Spain, other costs are added. In general, you should expect an addition of total of approx. 10 – 13% in addition to the purchase price.
When buying resale property you pay a transfer tax of 8% and when buying new construction you pay 10%. The reason why you pay more when buying a new construcion is because value added tax is added on the first sale of a home. This stamp duty is approximately 0.5-1.5% of the total value.
Notary fees and deed (Escritura) – The notary’s fees are mainly based on the purchase price and are usually around €500 to €1,500.
Bidding
In Spain, it is unusual to have the type of bidding that you for an example have in Sweden. In Spain, you usually make an offer that is lower than the asking price for a resale property. We help you negotiate with the seller about price and terms. Prices are set for new developments.
Reservation Contract
When the offer is accepted by the seller, a solicitor usually connected. Then a reservation contract is signed. This means that you as a buyer pay a reservation fee to reserve the property. The reservation fee can be between €3,000 and €10,000 depending on the residence.
Down payment, the next step is to sign a purchase contract which is usually 10% of the total purchase price, as proof that you will complete the deal. In connection with this, the access date is determined.
Access
On the day of access, the legal representatives meet at the notary public’s office, where the identities of both the buyer and the seller are checked, the legal condition of the home, a buyer’s contract is drawn up and the deed is signed. On the access date, you will receive the keys and can move in.
On new constructions, the payment usually takes place in several stages, first the reservation is paid and the purchase contract is paid during construction and is usually between 30% to 40% of the purchase price and the remaining 60% to 70% is paid when the deed is signed.
