Property Buying Process
The prospect of owning your dream home in Spain can be so exciting, and so life changing, that you might think it would be difficult to accomplish.
In fact, it’s quite straightforward, and also safe, so long as you understand the process and work with the right professional services.
From dreaming about it to owning it, we guide you through process of buying a property in Spain.
Step one: dreaming, brainstorming, researching
Whether it is a long-held dream, or a new idea inspired by a wonderful holiday there, your journey to owning a home in Spain should begin with research.
Property Guides has a host of content to assist you on the buying journey, both inspirational and informational. Plus, Your Overseas Home hosts helpful online events and webinars to give you further access to expert help. You can hear from and put your questions to legal experts, estate agents and currency specialists.
Firstly, ascertain some basics. Is your property just for your use or do you want to make an income from it? Do you wish to make it a permanent residence for yourself at some point? What can you afford, and will you need to borrow additional funds? These basic questions will set the foundation for how you approach the process, the location, and types of properties that you look at, and the financial implications of your purchase.
Check out our Spain Buying Guide to help refine your search with “must haves” and “would like to haves”.
Your Overseas Home
You have probably already started searching, but if not, Your Overseas Home has a property portal featuring over 40,000 properties across Spain. Browse through properties, filtering by area, adjusting by budget, property type (villa, apartment) and property features (nearby golf courses, mountain view, new build and more). If you see a property that you like the look of, then you can make an enquiry.
Your Overseas home also have property consultants available to discuss your property plans. They are free to call and friendly to chat to. They can connect you with lawyers, estate agents and other essential contacts for making your buying journey as stress free as possible.
You don’t have to plan your purchase alone, and Your Overseas Home will be more than happy to listen and guide you. It may be that a single holiday to Alicante convinces you that’s the place for you. Or you may spend a while choosing your favourite coastal location. Take as long as you need to with planning so that you’re comfortable with each stage and you arrive at the right mix of property, price and purpose.
Property buying in Spain: Your six-month countdown
From first ideas to keys in hand, three to six months is a realistic and achievable timescale. You can absolutely take longer, especially if you’re still trying to decide which location in Spain you’d like to buy in.
What follows is a rundown of the Spain buying process for resale property using a six-month timescale to the date you’d like to be able to take ownership of the property.
Six to five months to go
Define your property search. If you’ve been “just looking”, now is the time to start narrowing down your property search to homes that are within budget and meet your requirements. You can reach out to estate agents, too, to help speed up the searching process.
Sort out your money. Purchasing a property in euros can be tricky, as exchange rates fluctuate, making budgeting difficult. A currency transfer specialist can help safeguard against this with a forward contract, a product that fixes an exchange rate for your transfer in the future. If the euro gains in strength against your local currency between the time you sign a reservation contract and make the final payment, your property could end up costing you more than you budgeted. Speak to a specialist as early as possible.
You might also want to hire a mortgage adviser and independent financial adviser to help with financial planning and securing additional funds if needed. When you come to calculate your budget, remember to include the costs of buying, not just the property price.
Hire a property lawyer. Although it might seem premature, the legal structure of a purchase can have big tax and inheritance implications. It’s safest to engage a lawyer before you have viewed homes, and certainly before signing any contracts.
Attend the Your Overseas Home Virtual Event. Held every March and September, all online, the even is like a free, simple and highly efficient viewing trip. This is your chance to connect with property professionals who can help you with your planning and selection. You can register for the virtual event at Your Overseas Home.
Four months to go
Go on a viewing trip. If you have a shortlist of properties (or an area) that you would like to see in person, then it’s sensible to go take a look at some properties in person. A viewing trip will help you see the properties up close, feel what it would like to live in them and the area, and get a closer look for any potential faults or flaws that you need to include as part of your offer.
Before you fly, reconnect with your professional team to finalise all arrangements. If you find the right home, you may need to act swiftly.
Get your NIE number (número de identidad de extranjero). This is a special tax number that you will need to buy or sell a property. You can get one at the police station or the Immigration Office during your viewing trip.
If you need to, arrange additional viewing trips. It’s critical that you are happy with the property and the location before investing.
Three months to go
Make an offer on your dream property, making sure to consult with your professional team. If your offer is accepted, then you will sign a reservation contract and pay a fee for it to taken off the market. Your lawyer will now swing into action.
Book a survey for the property. While it is not commonplace to have a survey done in Spain, many overseas buyers feel that getting one gives them peace of mind.
Two months to go
Sign the deposit contract, contrato de arras. You will also have to pay around 10% of the purchase price. This contract sets out the property, price, payment method and when the purchase will be completed.
Fix your exchange rate. You are now committed to paying out a substantial sum of money in euros. But what if your own local currency weakens against the euro? You will need to find thousands more. You can avoid that risk with the right product.
Contact the notary. Your lawyer will do this, as well as ensuring the legalities of the sale. If there is anything you are unsure of, ask them to explain.
Connect your utilities. Contact the various companies. You don’t want to move in and not have WiFi!
Plan removals and decoration. Don’t leave it to the last minute or try to cram it all into your suitcase, organise an international removal company to take your belongings to your casa.
The final countdown
Sign the sale contract, escritura pública. Usually, you will sign this at the notary’s office, but you can give your lawyer Power of Attorney to do this on your behalf if you prefer.
Make your final payment. You will now pay the balance of the purchase price, less the deposit you have paid. You must also pay the relevant taxes (ITP), stamp duty, notary fees and legal fees.
Receive your keys and your new life in Spain is ready to begin!