The process for buying Spanish property is thankfully uncomplicated, so if you take some time to understand the order in which things happen, and you know what you will be expected to pay at the start of the process, you should avoid any unexpected surprises or expenses.
When preparing your budget for the purchase of a property in Spain, it’s important to consider the total expenditure that will be needed to secure your new home and when you will be expected to pay.
Once you have found your perfect property in Spain and negotiated the sale price, you will be required to sign a reservation contract.
The signed reservation contract commits both buyer and seller to complete the sale. You will be asked to pay a reservation deposit to secure the property at the price agreed between you and the seller. This, depending on the agreed sale price ranges from 3.000 € up to 10,000 € and will be deducted from the final sale price upon completion.
Below you see the steps taken when buying a property in Spain.
- Find a property you like
- Negotiate a sale price
- Put down a deposit to take the property of market
- Setup a Power of Attorney which allows your lawyer to take care of everything while you are back home (request a NIE, open a Spanish bank account for you, arrange the utilities automatic payments, etc.)
- Your lawyer performs a due diligence on the property
- If due diligence report is positive you move forward to the purchase of the property
- If the due diligence report has a negative outcome, you get your initial deposit back
- Payment of 10% of the sale price at the signing of the Private Purchase Contract (PPC)
- Final payment – Signing of the deeds at the notary
Although the purchase process is transparent and simple, we firmly advise to make use of a lawyer specialised in the Spanish local property market.
We are happy to introduce you to a well-known law firm we have great experiences with but you are also free to to choose any lawyer you know.