8 steps to buy a property in Spain
Step 1: Contact a real estate agent
As you have probably noticed, there are many real estate agents in Spain, this is because there were no required degrees to become a real estate agent, this has been changed in the meantime. From October 2023, every real estate agent must be registered with the Register of Real Estate Agents in the Comunidad Valenciana in order to carry on the profession after this date. So if you purchase a new construction project that is still under construction then there is a chance that your chosen real estate agent will disappear after October 2023.
Any registered real estate agent who has a collaboration agreement with the developer will be allowed to sell their projects. This means you can find the same project with different real estate agents and even published with different prices, but all real estate agents are restricted by the availability with the corresponding prices communicated to us by the developers. A good advice is to choose a real estate agent with whom you have a good feeling and then start your search for the right property and location.
Our registration number: RAICV 0087
Step 2: First introduction and gathering requirements
We introduce ourself and we explain our way of working as I did, and as I’m explaining now. We will check your requirements and we will inform you about the properties who meet your requirements.
Step 3: Viewing trip or video viewing
When we have a list of properties that suit your requirements we can plan a viewing trip (mostly 2 or 3 days) to see the properties and to discover the areas. If you are not able to come to Spain we can also organise a video viewing. Then we will go to the property and we will show it due to a video phone call (Whatsapp, FaceTime, Skype,…)
Step 4: Reservation:
If you have seen your dream house and you want to buy it then the first step i stop make a reservation. This is to take the property from the market and reserve it for you. As from this moment nobody else can buy this property. To reserve a property builders ask them to pay a reservation fee, this will be between 3.000€ en 6.000€ depending on the price of the properties. For villas this can go up to 10.000€
Step 5: First contact with legal representative:
For every sales in Spain we recommend you to work with a legal representative which can be a lawyer of a gesture. We collaborate with several independent lawyers which we can advise you, but you are also free to choose your own lawyer of gestor. If you want to work with a gestor that is also no problem, but I would like to explain to you the difference between an gestor and a lawyer. They both do the same job, only a lawyer has more access at official instances, but this is not the most important thing. A lawyer is always responsible for the information he is providing to you, which means if he informs you incorrect, he is responsible. If a gestor provides you the wrong information you will be responsible and never the gestor. What does a legal representative do:
- Checking all legal documents from the seller/Builder
- Helping you with the application of a NIE number (if you don’t have it)
- Helping you to open a Spanish bank account
- Validating from the sales contract
- Prepare the signing of the deeds at the notary
- Translation at the notary so that you understand all you are signing.
- Paying taxes
- Applying for utilities (water, electricity,…)
Step 6: Sales contract:
Approximately 1 month after the reservation you will receive a sales contract. This is a contract with all information from the property you are buying. It will be validated by your legal representative before you sign it. If it is approved by your legal representative he will inform you to sign. At this moment you also need to pay a percentage of the sales price to the builder. This can be between 20% to 40% depending on the builder and also the time of delivery.
Step 7:intermediate payments
When you buy a property which is still under construction or the construction needs to start then it is possible that there are intermediate payments. A payment schedule can look like this:
- reservation: 3.000€ - 6.000
- Sales contract: 25% (the reservation will be taken off from the 25%
- After 6 months: 25% (mostly when the structure is finished)
- At the notary: 50% (when you receive the keys)
In general you never pay more than 50% before you go to the notary. And all the payments you have done are guaranteed by a bank warranty or insurance. This means that if something happens with the builder and he can’t finish the project you will always have your money back.
When the property is finished and the legal representative has validated all the documents they will schedule a date to go to the notary for the official deeds, where you pay the last part and you receive the keys. As from this moment the property is yours.
When the property is yours you will decorate with furniture, decoration, lightning,….
We can help you with this as well as we are collaborating with furniture stores who offer furniture packages. You already have furniture packages from 3.500€ to fully furnish a 2 bedroom appartement.
What will a purchase cost:
The selling price + approx 15%
What involves this 15%:
- 10% VAT
- 1,5% stamp duty
- 1,5%-3,0% administration (legal representative, notary, land registry fees,…)
*The entire legal procedure is also explained by the legal representative. You can also provide a power of attorney to the lawyer so that he handles all the administration for you. The only thing you have to worry about is to pack and enjoy your property.