How to buy property in Spain
When you choose a property to buy in Spain, in particular in Altea, Mascarat, Calpe and Benidorm cities of Costa Blanca region, there are some things, you need to know. We prepared for you property purchase guide below. We could divide your property buying process into 8 steps.
- Selection of the property
- Once the choice is made, prior to signing the reservation agreement, under the stated condition, an amount of 1-1, 5 % of the purchase price is paid, to show the buyer’s interest and take the real estate unit off the market.
- Opening a bank account, for the money transaction and all payments related to the purchasing property. Further it can be used for payments of community charges, taxes, insurance and etc.
- The application for an Identification Number of the Foreigner a (NIE).It should be presented in the police station personally by all the applicants, who later will sign the Title deed. You are required to have your passport, reservation agreement, photos and bank account.
- Signing the private contract, 10% of the agreed value is paid. In this contract is indicated full payment, the form of payment and description of the property at the Land Register. The rest of the amount is paid at the moment of the signing the deed at the notary.
- Obtaining the mortgage (if it is necessary)
- Signing the Title deed (Escritura Publica) at the notary. In Spain all deeds to purchase and sell property are mainly signed at the notary office, this gives a maximum guarantee. The new owner gets the key at the moment of signing the Escritura Publica. Once you signed the Title deed at the notary, they will send the fax to the Land Register to inform about the transaction.
- Registration of the transaction in the Cadastre. Any kind of property in Spain should be inscribed in the Registro de Propiedad – in the Property Register. In the Property Register is inscribed the name of the property’s owner, its cadastral value, the exact square meters, as well as the previous owner’s debts. Within 30 working days must be presented the inscription in the Property Register and be paid the Tax (I.A.J.D.) (Impuesto de Actos Jurídicos Documentados).
The process of real estate purchase will take you about 2-3 months and additional costs will be approximately 12-15% of the basic value specified in the Title deed, including expenses of the transfer tax (known as ITP) notary services, commission for the registry fee in the Register. If a mortgage is requested, the amount of the additional costs is increasing.
We will provide you all comprehensive legal support throughout all the process, from the selection of the property till obtaining the keys, because this is the only way we can ensure the transparency of the transaction, and you will have a confident of the right choice