The Property Purchase Process in Spain
Purchasing a property in Spain is an exciting journey, but it’s important to understand the process to ensure a smooth and successful transaction. Below is a detailed guide to help you navigate the steps involved in buying your dream home in Spain.
1. The Reservation Contract
The first step after finding your dream home is to draft a reservation contract. This contract clearly outlines the property you wish to reserve, the agreed-upon price, and the handover date.
Once the reservation contract is signed, you’ll need to make a reservation deposit. The amount typically ranges from €3,000 to 10% of the property price. This payment ensures the property is taken off the market. Please note, if you decide to withdraw from the agreement after this deposit is paid, you will lose the deposit.
2. Obtain Your NIE (Spanish Identification Number)
To purchase a property in Spain, every buyer is required to have a Spanish Identification Number (NIE). If this is your first property purchase in Spain, don’t worry – our legal department will handle the process of obtaining your NIE once you’ve granted the power of attorney (as mentioned in phase 1).
Keep in mind, the process of obtaining an NIE can take up to two months. However, we work with reliable contacts that can expedite the process if needed, ensuring minimal delays in your property purchase.
3. Property Check
In the meantime, we will carry out a thorough property check. This involves verifying that the property is properly registered, free of any debts or encumbrances, and that the seller has the legal rights to sell.
If we identify any issues, and we advise against proceeding with the purchase, your deposit will be refunded. We aim to ensure your investment is secure and free from legal complications.
4. Drawing Up the Purchase Contract
Once everything checks out, the next step is to draw up the purchase contract. This contract is typically prepared in collaboration with the seller’s lawyer or developer.
For new builds, it’s common to pay up to 50% of the property price when signing the contract. The remaining balance will be paid upon completion of the property.
For resale properties, the standard procedure is to pay 10% of the price upon signing the contract, with the remainder due when you sign the deed of sale at the Notary Public.
5. Signing the Deed at the Notary Public
The final step is the handover. On the designated day, you’ll sign the deed of sale at the Notary Public, and the remaining balance will be paid using a Spanish bank check.
At the Notary Public, we’ll receive a temporary copy of the deed, and the official version will be sent from the property registry in a few months. With power of attorney, we can handle the Notary meeting on your behalf, saving you time and effort.
6. Final Steps and Moving In
Once the deed is signed and the transaction is complete, you’ll receive the keys to your new home, and you can move in! If requested, we will ensure that your utilities—including electricity, water, internet, and alarm systems—are set up.
We also arrange automatic payments for these services from your Spanish bank account, so you can enjoy a smooth transition into your new property without worrying about administrative tasks.
Conclusion
Buying a property in Spain may seem like a complicated process, but with the right guidance and support, it’s an exciting and rewarding experience. From the initial reservation to the final handover, we’ll be there every step of the way to ensure that your purchase is seamless and stress-free.
If you're ready to start the journey toward owning your dream home in Spain, feel free to contact us today. We're here to guide you through each stage of the process.
