Buying property in Spain

Firstly it is very important to have a clear idea of what property you are looking to purchase and seriously take into consideration your budget not only for the property itself, but all legal costs involved including the tax of purchasing a property (7% of the price) land registry, notary fees, mortgage fees and stamp duty if applicable. This normally works out to be approximately 10% of the purchase price in costs. All these amounts need to be clarified with the lawyer acting on your behalf beforehand.

What you should consider and decide

• Property you are looking for: Investment, holiday, premanent residence
• Type: Villa, Townhouse, Apartment, Commercial, Finca
• Location: Close to amenities, beach, golf, schools
• What is important: Parking, gardens, pool, gym, orientation

Once you have chosen your ideal property and location and you would like to take matters further after your first viewing, you firstly would make an offer and once this offer has been accepted you would need to place a reservation deposit (€3000 - €6000 - depending on property price) to secure the property while the your lawyer makes the necessary searches.

There are many English speaking lawyers based on the Costa del Sol who can undertake all the necessary legal requirements of your purchase. Using a Spanish lawyer ensures that all aspects of Spanish Law are accounted for which an English lawyer may not be fully aware of. Using an English lawyer may take longer as all paperwork will be in Spanish.

The final stage of buying a property occurs when you arrive at the local Notary office with your lawyer to sign the title deed (Escritura). The final payment is made at this time and the keys are passed to you.

How the buying process works:

• On finding a property you wish to purchase and agreeing a purchase price; pay a reservation deposit to secure the property
• The lawyer will organise a reservation contract for you the vendor
• They will open a bank account on your behalf (should this apply)
• The will organise your NIE numbers (should this apply). NIE is similar to a National Insurance Number in the UK and is required when purchasing a Spanish property
• Approximately 30 days later once the searches have been completed a Private Purchase contract is then signed. 30% of the property is now paid (new properties) or 10% (re-sale property)
• Sign the title deed (Escritura) in front of the Notary

Once the above is completed the property is then in your name and you are the official owner. Your title deeds are logged with the land registry and your utility bills are transferred into your name, this process can be very time consuming, unlike in the UK!