The procedure for buying a property in Spain
If you have decided to buy a property in Spain, as an investor you should take into consideration several factors and go through these ten stages. Basically, in comparison with other European countries, the procedure of buying a property in Spain is quite fast and transparent.
STEP 1 Property selection
During the first stage the company monitors the market and a selection of property units is made following the preferences of investors’ preferences;
STEP 2 Arranging a visit
The next step involves arranging a trip to Spain in order to view the properties and choose the one that the investor likes (from 3 to 5 days);
STEP 3 Preliminary sales contract
The investor signes a preliminary sales contract, which represents their intention to buy a property, and pays a bank deposit (1 day);
STEP 4 Opening a personal account in a Spanish bank
Opening a personal account in a Spanish bank (the agency will assist with this procedure). The bank account should be set up in the Spanish bank that has agreed to accommodate the loan. Non-residents can obtain credit to the amount of 40-50% of the total value of the property;
STEP 5 Submission for N.I.E. (Numero de identificacion de extranjero N.I.E.)
Submission for obtaining N.I.E. (Foreign Resident Identification Number). This procedure takes 1 day, with the document being authorised and returned in 10 days. In order to obtain a N.I.E. the following documents should be submitted:
- An active visa;
- A preliminary sales contract;
- A complete official form EX-14, EX-15 of the person concerned;
- A tax payment of€9,18;
- A photo of the investor;
- A confirmation from the bank that 1/3 of the total amount of the property has been paid;
- The extract from the register, provided by the previous owner (the seller).
STEP 6 Mortgage arrangements
If the investor plans to arrange a mortgage, the bank gives the confirmation within 48 hours to 1-2 weeks. All the documents must be brought from the country of origin, translated to Spanish and apostatised. The following documents have to be provided in order to acquire a mortgage:
- An enquiry that proves the investors monthly income;
- Information and proof of other sources of legal income (from renting out property, stock trading income, etc.);
- A certificate of employment which shows the investors job position and working period;
- A record of the investors bank account for the last 6 months (minimum);
- A record from the credit reference bureau.
STEP 7 Final sales contract
The final sales contract has to be signed. This is usually done from 2 weeks to 3-4 months after paying the deposit.
TAXES AND MAINTENANCE CHECK LIST
Secondary housing purchase (ITP)
10% from total price, mentioned in the contract (Escritura Publica
Primary housing purchase. Spanish value added tax (ITP)
Tax for executing legal acts
(AJD – Impuesto sobre Actos Juridicos)
1% of total price
Registration with National register
Notary services (approximate cost)
- Legal bills (not obligatory);
- Translations to Spanish language.
After the final contract is signed the whole procedure takes from 2 weeks to 3-4 months
*If the investor wants to apply for a residence permit and they are buying a residential/commercial property priced at €500 000 (without VAT) or more, then within 1 month after the documents are submitted, they may obtain a Spanish “Golden Visa”, or in other words a residence permit.
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