11 steps to buy a home in Spain.
It is no harder to buy a home in Spain than in the rest of Europe. It’s just different rules and a different approach.
Here we present you 11 steps that you should consider before buying a home in Spain.
Step 1. Have the financing ready or a loan promise from your private bank in your home country or in a Spanish bank.
Step 2. Book your trip here and contact the real estate agent well in advance of your departure and state your requirements and wishes on how you want your accommodation to look and be.
Step 3. Select an area. Since everyone has different requirements and desires, it is good to get to know your favorite area so you know you will enjoy yourself. It is important to be 100% honest with himself and the broker as he knows the different areas of the coast.
Step 4. Book a tour with the broker that you have 100% confidence in as the broker can show them most of the homes on the coast (could say almost everyone). You do not need to book a viewing with several brokers. Despite competition in the industry, we work with brokers to make your viewing as smooth and comfortable as possible.
Step 5. Once you have found a home that fits your search, a reservation will be paid so that the home can be removed from the market. The reservation may vary slightly depending on the sale price and the date of admission. Generally, a reservation is usually around 6,000 €.
New production usually has a different design. You have to hear with the promoter how their payment arrangements look.
Step 6. A legal representative is contacted. Either you have one yourself or the broker can recommend one. As a rule, you can always get a legal representative who speaks your native language. Then you write a power of attorney for the legal representative who represents one in the purchase of housing and apply for a Spanish NIE number (tax number) and open a bank account. The legal representative looks through all the documents for the home so that there is no error and writes the private purchase contracts between buyers and sellers.
Step 7. When the buyer and seller agree on the private purchase contract, you pay 10% of the purchase price which includes your reservation fee.
Step 8. One week before joining, the remaining amount is transferred to the lawyer’s client funds account so that he can complete the purchase for you.
(The amount transferred includes: Used housing: Tax 8-10% depending on purchase price. Notary fee of about 0.5%. Registration fee of about 0.5%. Connection fee for electricity contract / water contract and gas contract if needed / available. New production: VAT of 10%. Stamp tax of 1.5%. Notary fee of about 0.5%. Connection fee for electricity contract / water contract and gas contract if needed / available
Step 9. On the day of accession of the home, the purchase is carried out at Notaries Publicus and you become the owner of your new home.
Step 10. The legal representative registers you as a new owner with the state, the municipality and the housing association (if there is one). Electricity and water contracts are also registered.
Step 11. The keys to the property are collected from the broker or legal representative. The recommended collection of keys is about 2-3 weeks after the entry for the electricity and water contract to be transferred in the new owner’s name.
It is also possible to buy one or more homes in a company. Hence there may be slightly changed costs. Even if you decide to lend your home to a Spanish bank, there may be some extra costs.
If you have any further questions or concerns, please feel free to contact us at Nordic Quality Estate and we will help you with a successful housing deal.