Buying your Dream House in Spain

Buying a house abroad is a fun and exciting affair. But, because of the new EU situation, you certainly have administrative and legal differences and in the case of buying a house in Spain it’s obvious that the process varies from your home country. Therefore it is important to be well prepared.

We are happy to explain how it works here in Andalucia. And we might not be able to answer all your questions, but please don't hesitate to contact us for more information. In general, it goes as follows:

Step 1: Finding the house of your dreams

When you have decided to have your own dream home in the beautiful Andalusia region, it is important to think upfront about what kind of property would be ideal for you. Would you like to live on the coast, in the countryside, in a typical white village and is it villa or finca that you prefer or is an apartment or a townhouse more appropriate? We advise you to fill out our wish list. But there are also important aspects that are not clear or visible until your first viewing on the spot.

In order to get a good insight into these wishes, it is wise to visit the region beforehand, perhaps also in the different seasons. Is the idea to buy a country house or a finca in the countryside? Rent a property of this type for a period of time. This may answer already many questions and uncertainties.

Based on your wishes and requirements, we start searching for you. Together with you we’ll come to a selection of interesting properties after which we will make a visit plan and arrange the viewings in the desired areas and accompany you to the properties as many times as you like. We will support you and do our utmost to give you the answers to all your questions.

Step 2: Negotiate the appropriate price

Once you have chosen the house of your dreams, we will start negotiating the price and the conditions for you with the vendor.

When there is an agreement on the selling price, both parties sign the reservation contract and the buyer pays a deposit between € 3.000 and € 8.000, depending on the price of the property. This amount will normally be paid to a clients account of your solicitor or to us. The reservation contract gives the buyer the formal option to buy the house at the negotiated price and with the agreed conditions. After signing and the payment of the deposit, the property will be taken off of the market and we can organise the finalisation of the sale.

Step 3: Legal check

Now the solicitor will do the necessary legal checks of the property to make sure that all the paperwork is in order, that it is free of charges and debts and has no other problems. Once this has been carried out and all the lights are green, the solicitor will prepare the private contract (see Step 4) between the buyer and the vendor.

When the solicitor does find something that is in the way of buying the property, he will do the utmost to try to solve these issues so that the sale can still proceed. In the rare case that the issues found are impossible to repair, the deposit that is paid will be returned to the buyer.

Together with the solicitor we will also arrange the following necessities:

• NIE number: The identification number for foreigners. The solicitor goes on your behalf to the police station with a copy of your passport and the N.I.E application form. This has to be arranged preferably before the completion date.
• a Spanish bank account that you will need for the utilities contracts and payments.
• possibly a notarised power of attorney so that the lawyer can act in your/your interests should you not be in Andalusia for the transfer.

Step 4: Private Contract

The solicitor will now draft a private contract that both parties will sign. This document contains all the details of the property you are buying, agreements (about the inventory, for example), if the CEE (Energy Performance Certificate in English) is in place, the payment form and the date of completion. During this phase you, as being the buyer, have to pay 10% of the agreed price of the property (including the deposit you already paid).

Step 5: Signing of title deeds

At the completion of the sale in the notary office, the signing of the title deeds finalises the handing over of the property from the vendor to the buyer. This document includes all the important information about the property and/or the plot. The actual signing of this document has to take place before a Spanish notary, and both the buyer and the vendor sign it, or their legal representatives.

The notary is the state official whose assignment is to certify that the contract has been signed before him and that the vendor and the buyer have been advised on the payment of their taxes. This is the person that assures you that the legality has been fulfilled.

Step 6: The registry of the property and utilities

The property registry is an official public body where you register, for general acknowledgement, the rights and description of a property. The property registry takes precedence over the cadastral registry (see below). Once the sale has completed and you are the owner of the property, the solicitor will go ahead and register this with the property registry to confirm that you are the new owner. Your solicitor will notify you as soon as the title deeds are ready for you. This will take at least 3 to 6 months after the signing.

The Catastro is the global registry of all properties in the province of Málaga. Your solicitor will also take care of registering your property here, also for tax reasons. This process takes between 1 and 3 years.

Your solicitor can make arrangements that the water, electricity, etc. will be registered in your name and that the payments are made via your Spanish bank account.

Costs and Rates

In general, you should add to your expenditures between 10% to 13% of the sales price, depending on what kind of property you buy, which contains:

• The fees for the solicitor, the notary and the registration of the property in various organizations.
• The taxes, such as VAT and transfer tax, which is between 7% and 10%, depending on if you buy a second hand property or new built, the sales price of the house and if you buy on one or more names.

Your solicitor will give you a detailed cost overview in the course of the buying process.

< Tax & Administration