Essential Guide to Purchasing Property in Spain

Senior couple signing documents — WHAT YOU NEED TO KNOW

Buying Property in Spain: What You Need to Know

Once you find the Spanish property of your dreams, we'll connect you with a local solicitor who will handle all legal aspects of your purchase. They'll conduct searches to ensure there are no debts, tax arrears, or unpaid bills on the property. There are many English-speaking solicitors in the area with expertise in Spanish property law. Your selected solicitor will handle not just the legal aspects of property purchase but also arrange your NIE number (Spanish identity number), open a bank account, establish wills, health insurance, and more for you.

Once you've made an offer on a property and it's accepted, we'll draw up a reservation contract and you'll need to pay a €3,000 deposit to take the property off the market. Your chosen solicitor will receive all the necessary paperwork to begin the legal checks.

Around 21 days later, a 10% holding deposit is required upon signing the Purchase Contract (compra-venta), which typically remains valid for 90 days.

Around 90 days from the initial agreement, you'll sign the Title Deeds (Escritura) for your new Spanish property. The timing of this can be negotiated between you and the seller. Additionally, you don't necessarily need to be present to sign, as you can leave a power of attorney with your chosen solicitor.

Guide to Taxes and Fees

Solicitor's Fees

Typically, around €1,000, but costs vary based on the complexity of the work and the solicitor's rate.

Transfer Tax

For resale properties, a 7% transfer tax (ITP) is applicable in the Andalucía region of Spain. New build properties incur a 10% IVA (VAT) charge on the contract price.

Notary Fees

These fees range from €600 to €900 based on the sale price and are paid upon signing the Title Deeds (Escritura).

Registry Fees

Around €500, these fees cover the inscription of the property deeds (Escritura) in your name at the Registrar's office. Payment is due within 30 days of signing the property deeds (Escritura).

Example purchases

Example 1

Property priced at €50,000

Solicitors Fee:€1,000
Purchase Tax (7%):€3,500
Notary Fee:€600
Registry Fee:€500
Total Cost:€56,100

Example 2

Property priced at €100,000

Solicitors Fee:€1,000
Purchase Tax (7%):€7,000
Notary Fee:€600
Registry Fee:€500
Total Cost:€109,100

Getting a Mortgage in Spain

Interest rates are lower in Spain than in the UK, but setup charges can be higher. Discuss these with your bank early on.

To apply, open an account with your chosen bank and provide proof of income, such as recent payslips and bank statements. Self-employed individuals need to submit their business and personal bank statements, along with accounts from the last 3 years.

The bank will tentatively agree on your eligibility, pending an official property valuation.

To secure a mortgage, the property's Title Deeds (Escritura) must be registered for 2 years (in most occasions) so the bank can obtain a Nota Simple, detailing any outstanding debts.

After receiving the Nota Simple, the bank arranges for an independent valuation, typically costing around €400.

Based on the valuation and your income, the bank makes a mortgage offer. Non-residents may get up to 70% of the valuation, while residents may get up to 80%. At Almeria Homes, we're able to help you obtain a mortgage in Spain with reliable mortgage brokers and local banks to assist you in securing the ideal mortgage solution.