Buying a property in Spain

4th August 2023 · 4 min. read

Buying a property in Spain is a long process where many legal requirements must be met, as well as important points stipulated by the financial institution involved. In addition, it must be carried out very rigorously. Many people feel lost when buying a home. So, in today’s article, we’ll talk about all the information you need to know and manage the process of buying a property in Spain. Let’s get started!

The process of buying a property in Spain involves various steps. It should be considered that a lot of documentation will be needed, as well as the payment of mandatory taxes to be able to follow the steps correctly and without making any mistakes. Buying a house often takes time, is tricky and expensive, but you can’t throw in the towel. Here is a basic guide for buying a property in Spain:

Property purchase process in Spain: first stage

The first stage of the process when buying a house in Spain is made up of three parts. You should remember that once you have chosen which property you want for sale on the real estate market, you must make a prior agreement with the owner of the house. Then manage the mortgage with the financial institution. And finally, sign a sale and purchase agreement. In that order.

1. It is essential to carry out a thorough review of the condition of the home, analysing and identifying the real owners, the exact location, the actual size, the physical state of the property, checking that it has no debts etc.
2. Once the property has been properly analysed, an Earnest Money Agreement (“Arras”) must be carried out. This consists of revealing the sale between the former owners and those who are going to buy the house with a legal document, private between both parties, which requires the presence of lawyers. Each point must be carefully addressed and the norm is to give an advance of 10% of the total value of the house at the time of signing.
3. As regards the final step of this first stage, the management of the mortgage will be carried out. This is the longest part because several documents are needed that attest to the applicant’s ability to pay. this may involve payroll, equity tests or other aspects involving economic capacity which must be approved by the bank or financial institution. In addition, no contract can be signed without having previously approved the mortgage. Unless the total is paid and there is no loan.

Property purchase process in Spain: second stage

As regards the second stage, the following requirements must be considered to acquire the property:

–Firstly, the mortgage loan must be granted, which is carried out through a bank valuation. This is an important, lengthy process since different documents will have to be presented and the bank appraiser will probably have to value the property.

– As regards closure, this must be certified before a notary. All the documents that are required will be submitted here, from the DNI (ID cards) of all those involved, to the deed of the property; from the receipt of the advance payment to the document that proves the specific granting of the mortgage. To find out exactly all the documents, you can consult here.

– It is very important to consider the section on taxes that must be paid when buying a property in Spain. The property must be up to date with Homeowner Association (Comunidad) fees, it must be registered with the Property Registry and a deed must be carried out before a notary. To acquire a home in Spain, the tax process needs to be watertight.

Without a doubt, carrying out a property purchase process in Spain takes time and can sometimes be a bit difficult. That’s why we would advise letting yourself be guided by real estate management professionals. Of course, we will accompany you throughout the process. Don’t hesitate to contact us.

We hope that today’s article will help you manage this process and make it as short as possible. We also wish for you to acquire the luxury property of your dreams and enjoy the wonderful lifestyle that this place offers.