The Buying Process
The first and most important step when purchasing a property in Spain, even before choosing the property you wish to purchase, is to engage a Lawyer to guide you throughout the procedure and start a Due Diligence process in order to ascertain whether the property is free of charges and encumbrances.
Your lawyer will make all the necessary enquiries regarding the property at the Land Registry, Catastral Office, Tax Office, Town Hall and Banks.
Reservation Of The Property
This document is signed with the vendor of the property in order for him to take the property off the market. Normally, a minimum of 6.000 € is paid upon signing this document.
Opening a bank account and requesting a NIE number (fiscal identification number for foreigners). This document is absolutely necessary to purchase a property. Final enquiries with regards to the property
Private Purchase Contract
This contract covers all the terms, conditions and obligations of the purchase, such as: the property that is sold and its annexes, the purchase price, the conditions and obligations of each party, terms and means of payment, date of completion, etc.
Upon exchanging the private purchase contract, the buyer shall pay from 10% to 30% of the purchase price as a confirmation of the reservation of the property.
Obtaining all the necessary documents prior to signing the Purchase Title Deed and drafting the Deed, as well as applying for a mortgage if necessary.
Signing Title Deed
Signing the Purchase Title Deed before the Notary Public, payment of the remaining purchase price, handing over the keys and all the documents related to the property. If necessary, the Mortgage loan
Title Deed shall be signed on the same day.
Registration Title Deed
Registration of the Title Deed of Purchase at the Land Registry as well as changing the name of the water and electricity supplies contracts, local rates, rubbish collection, etc.
We recommend you to ask your lawyer to help you with tax and accounting services to help you through the aforementioned steps, as well as paying the relevant taxes, applying for a residence permit or any other issue related to your property, yourself or your family.
Also read about:
Taxes and Expenses when buying a property in Spain.