01
Orientation
Before you start viewing, you set your budget including the additional costs and choose a region that suits your life. One Costa is cosmopolitan and international, another quiet and authentic. You also make the choice between new-build and resale here, because that determines, among other things, which tax you pay.
This is also the moment to decide whether you do it alone or engage a buyer’s agent. An independent party that looks after your interests alone often makes the difference on the Spanish market between a good purchase and an expensive one.
Key pointGood preparation shapes the rest of your journey.
02
Searching and selecting
Spanish listings are spread across property sites such as Idealista and Fotocasa, and part of the supply is off-market and therefore nowhere to be found online. Making a selection that truly matches your preferences saves a great deal of time and disappointment.
Viewings can be done in person, but increasingly also remotely, with video and a trusted person who goes to look on your behalf. That way you keep an overview without flying over every week.
Key pointA sharp selection is worth more than a hundred open tabs.
03
Offer and negotiation
Making an offer in Spain works differently than you may be used to. There is often room to negotiate, especially on homes that have been on the market for a while, but that room varies greatly per region and per seller.
A well-substantiated offer, based on comparable sales and the condition of the property, earns you more than a quick, emotional bid.
Key pointSubstantiation gives you negotiating power.
04
Reserving and arras
When you want to secure a property, you often first sign a contrato de reserva with a small deposit, so the home is taken off the market. That is followed by the contrato de arras, the actual preliminary purchase contract.
With arras penitenciales you may withdraw, but you lose your deposit. If the seller withdraws, you receive double back. So read exactly what you are signing.
Key pointThe deposit sets out rights and obligations — read the contract carefully.
05
Legal due diligence
This is the phase in which an independent lawyer examines the property. The nota simple shows who the owner is and whether any mortgages, seizures or easements rest on it. Those charges pass to you on transfer, so they need to be in order.
Permits, a possible illegal extension that can still be legalised, and, for new-build, the bank guarantee on your deposits also belong here. This is where guidance prevents the most grief.
Key pointA thorough check prevents the most expensive mistakes.
06
Financing and mortgage
If you want to finance, Spanish banks usually lend non-residents up to 60 to 70 percent of the value. You compare interest rates, terms and conditions, and arrange your NIE and a Spanish bank account in good time.
Start this early, because without a NIE and a bank account the signing appointment grinds to a halt. A preliminary mortgage approval also gives you certainty about what you can realistically offer.
Key pointArrange your NIE and financing well before the signing appointment.
07
Costs and taxes
On top of the purchase price you pay taxes and transaction costs in Spain. For resale properties that is the transfer tax ITP, which differs per region. For new-build you pay IVA plus the stamp duty AJD.
On top of that come the notary, registration, gestoría and your lawyer. Reckon on ten to fifteen percent extra in total.
Key pointThe type of property determines which tax you pay.
08
Notary and deed
The transfer itself takes place at the notary, with the escritura pública. At the moment of signing you pay the balance, receive the keys and become the owner.
After that, the property is registered in your name in the property registry. Only with that registration is your ownership fully set down in black and white.
Key pointOnly after registration in the registry is your ownership complete.
09
After the purchase
After the handover of the keys you put the utilities in your name, arrange the annual IBI and the contribution to the owners’ association, and, if applicable, register with the municipality through the empadronamiento.
If you are not always there, you can outsource the management and rental of your property. That way your home stays in good condition while you are away.
Key pointGood management keeps your home in good condition, without you having to keep an eye on it.
