How to Buy Property in Spain
Required Documents and Formalities…
To buy real estate in Spain, you need to have an open bank account in Spain and an N.I.E. (Foreigner Identification Number), which we obtain on behalf of the client. This document can be provided within 14 days after the notarial deed. For a bank visit, you will need documents confirming the source of your income, so prepare:
- Passport or ID card
- N.I.E. number (can be provided to the bank later)
- Employment contract or certificate of conducting business or proof of other income
- Tax return for the previous year
For a mortgage, necessary documents include:
- Passport or ID card
- Tax return for the last two years
- Credit Bureau Information
- Bank statement for the last 6 months from the account where you receive income (both business and personal accounts)
- Information about the conducted business activity (KRS or CEIDG) or a certificate from the employer containing information about the start date of the contract, position, and earnings.
- Information whether the borrower is married or has separate property.
- N.I.E. number (we can obtain a temporary N.I.E. in one day to start the mortgage application process immediately)
The bank will also ask you to fill in attached PDF documents, such as:
- Authorization to process personal data
- Loan application
- Property declaration
- Health questionnaire.
When purchasing real estate with a mortgage from a Spanish bank, a minimum of 30% down payment is required, plus additional costs as shown in the tables below. In addition to mortgage costs, you will need to consider the appraiser, appraisal report (maximum of €500), and the commission for activating the bank loan. Amounts vary depending on bank promotions.
Notarial Power of Attorney for Property Purchase in Spain
The notarial power of attorney allows for a secure and efficient purchase, even if you are in your home country. Our team actively collaborates with you remotely, providing information and documents online. In the final stage, your representative verifies the conformity of documents and signs the notarial deed on your behalf. The following day, utilities will be transferred to you as the new owner.
Why Leave Power of Attorney?
- Security and Efficiency: Our experienced team ensures that the entire process is conducted in accordance with the law and with the highest level of professionalism.
- Comprehensive Service: By leaving us the power of attorney, you avoid the stress of managing the remote purchase process, focusing on your daily responsibilities.
- Remote Convenience: Wherever you are, you can be sure that the office is your trusted partner, acting on your behalf. Leaving power of attorney at the notary will cost about €80. If you do not speak Spanish, a translator is mandatory, and your agent or representative can also serve as a translator.
Reservation Agreement – Secondary Market
Deposit payment between €3000 and 10% of the purchase value. The deposit secures the transaction and is treated as part of the property payment. If the transaction fails due to the buyer’s fault, the deposit may be forfeited to the seller. If the transaction fails due to the seller’s fault, the seller returns the deposit plus an additional amount equal to its value. The agreement is always prepared in Spanish, but we translate it into the native language of the buyer and seller. However, it should be noted that in Spain, any objections will be considered only in the Spanish version. We usually plan the purchase period in the reservation agreement for no longer than 2 months, in the case of a mortgage, no longer than 3 months. Most sales are finalized within 4-6 weeks.
Reservation Agreement – Primary Market
A reservation agreement for a new property in Spain usually requires a down payment of 25% to 40%, which is a standard practice to secure the interests of the developer and confirm the buyer’s commitment. Payment terms, dates, and methods are precisely defined in the agreement, and it is also crucial to use a bank guarantee, mandatory in Spain. Every developer must have insurance with a bank or another institution guaranteeing a full refund to the investor in case of the developer’s failure. The remaining amount is paid only after receiving the finished apartment from the developer, during the notarial deed.
Sample Costs of Buying Property on Costa Blanca (Valencian Community), Costa Calida (Murcia region)
- *Legal service cost includes assistance during the notary deed, assistance at the bank, and oral translations. Transfer of utilities such as electricity and water. Change of owner in the Tax Office and in the housing community, calculation, and payment of taxes. In the case of a primary market, expect the first significant invoice from electricity and water suppliers for the first installation of meters; the amounts vary depending on the supplier. For a marital agreement, a translated document with an apostille stamp must be presented before the notary on the day of the notarial deed (additional costs may apply). Before making a reservation payment, we thoroughly verify the property from a legal perspective.
*Costs may vary slightly depending on the number of pages in the notarial deed. **The marked certificate is usually already paid by the seller.
*** The price may vary slightly, depending on the location of the registry. The price list of services may change. Estimated data for the year 2024.
