Buying real estate in Spain
The process of purchasing real estate in Spain is different than in Poland and contains different elements.
At Advisor Estate, we will guide you through all stages to make the purchase process convenient and clear for you, and the most important thing for us is that you only gain, not lose, from the transaction.
For those who decide to buy a house or apartment in Spain, below is a practical list of points that are worth being aware of when making such a decision.
Purchasing real estate abroad should be an unforgettable and pleasant experience. We want you to feel safe and to be able to successfully pursue your dreams!
Why we share our knowledge and experience with you. We will also hire a Polish-speaking lawyer for you so that everything is arranged down to the last button.
Choosing the right property – New or Used?
If you buy a property on the secondary market, you see what you get and you don’t have to imagine anything. However, remember that older properties do not always have the same quality in terms of construction standards, which are improving significantly with the development of technology.
Currently, there are many new construction projects of high quality both architecturally and technologically and in accordance with the latest EU standards.
You can choose from a variety of property types such as private villas, bungalows, units and apartments in many attractive locations.
Buying a newly built villa or apartment also means that you do not have to make any renovations to the house for many years.
Usually, when purchasing a newly constructed property, we have the opportunity to see a show house or apartment, which gives us a closer idea of what we will get and in what quality.
The price of a new property in Spain includes a developer’s standard apartment, practically ready to move in, with finished floors, doors, bathrooms, kitchen, wardrobes and lighting. It varies depending on the specific project, but when presenting a new investment, we always provide a finishing standard. Customers always have the opportunity to choose colors and finishing options, and a common practice is to offer a comprehensive equipment package with movable furniture, decorations, lighting, etc. All this so that you can save your free time and spend it as quickly as possible in your ready-made new house or apartment!
It is worth being aware that the price when purchasing new properties from a developer is the same, regardless of whether you buy through our agency or directly from the developer. When purchasing with us, we do not charge you a commission.
Most important >>> We do not recommend purchasing directly from the developer.
- The reason is simple – you have no one who could take action and monitor the construction progress, verify compliance of documents, provide legal assistance and guide you through the entire purchase process. Even if you understand and know the language, it is not certain that they understand what you mean due to differences in culture and customs.
- At Advisor Estate, we always check development companies before starting cooperation with them. If the houses are not finished, we ask for a bank guarantee on your behalf if you wish. This is a highly recommended practice to protect your interests. You will always receive an oral or written translation of the purchase contract and documents into your native language.
- We also make sure that the client regularly receives information and photos from the construction process. After finishing and handing over the house, we make sure that you receive practical documents, such as occupancy permits, construction completion certificates and a warranty against errors and defects.
- Documents required to purchase real estate in Spain Valid passport or ID card NIE number (Spanish identification number) – it can be obtained in Spain at the police or at the Spanish embassy in Poland, it is issued once for life! If you decide to obtain a number in Poland, here are the telephone numbers to call: 22 583 40 00 or 22 583 40 01, and to this address you should send an e-mail with information on who the NIE number should be, how many people, names and surnames, purpose issuance of a number (e.g. purchase of real estate), telephone number for contact. sc.varsovia@maec.es Spanish bank account number (some foreign banks are approved, but you need to check if your bank account works for this purpose if you do not want to open a Spanish bank account) If you do not have a NIE number and an account number in Spain, We can of course help you with this on site.
Purchase process
After choosing the house or apartment that suits you, the process is divided into several steps, the most important of which are listed below:
Step 1
Signing the preliminary contract / house reservation, which is a legally binding document. When signing this document, a deposit is paid, the amount of which may vary, but is usually between €5,000 and €10,000 for a used house and usually 10% of the house price for a newly built house.
If you don’t complete the purchase, you will lose this entire amount, so it’s important to get a breakdown of the total costs and have your home financing ready. If the seller wants to break the contract, he has the right to do so under Spanish law, but must then return double the amount of the deposit to the buyer. Secondary market: When you buy a property on the secondary market, the remaining amount is paid when you sign the notarial deed. At this point, the keys to your new home are handed over and you are now its owner.
Primary Market: When you buy a newly built home, the repayment schedule may vary slightly, depending on the developer’s terms. Usually, a certain percentage is paid within 1 month, then up to 3 months, and the rest after signing the notarial deed. You will receive a specific payment schedule when signing the reservation contract.
Step 2
Very important >>> Most of our clients decide to issue a power of attorney to a lawyer who can represent you in Spain. The representative deals with, among others: contact with the notary, organizes contacts with offices and the bank, organizes the necessary official documents, verifies the developer’s documentation and all permits, and ensures that the utility contracts are written in your name and are connected until you take over the house. It will certainly save a lot of your time.
Step 3
Real estate purchase agreements are always in Spanish to comply with the law in force in Spain, but we will attach a translation to the agreement, and during the notarial deed itself you will feel safe in the assistance of a lawyer who will translate every point. When buying a house on the secondary market, you will be informed, among other things, that it is debt-free, without tenants and with all required permits. A building permit is required for any development that changes the living space of the house (this also includes, for example, balcony glazing). In the past, many of them built without building permits, which we still encounter sometimes. Your lawyer will make sure that all elements of the house or apartment are included in the notarial deed, but sometimes it is not possible to include the reconstruction or the seller does not want to bear this cost, if we encounter such legal problems, of course, then you also have the option of terminating the contract.
Step 4
Financing and Mortgages
From the very beginning you need to be completely clear about the costs that arise both when purchasing and using your new home. Additional costs related to taxes and fees related to the purchase are approximately 12-13% of the net price of the house, it also depends on whether you are a resident of Spain or not. If you already have ready financing for the purchase of real estate and you intend to transfer a larger amount, it is best to do it directly in euro. The most common practice when purchasing is to hand over a bank check to a notary on the day the deed is to be signed. Making a bank transfer at a notary is rare because it is possible to cancel the transfer later and this may unnecessarily extend or postpone the signing of the purchase contract.
Your lawyer can arrange the bank check on your behalf and hand it over directly to the notary. If you want to take out a loan to finance the purchase of a property in Spain, we can help you contact a Spanish bank for this purpose. Banks have slightly different requirements than in Poland.
Below are examples of bank procedures when applying for a loan:
- a completed mortgage loan application including the loan amount and duration, a copy of your passport
- Banks are usually able to finance a maximum of 70% of the purchase price of a property for non-residents
- Life insurance is always required to cover your mortgage loan.