The Buying Process
A Guide to the Property Buying Process in Spain
Buying your dream home in Spain can be an exciting adventure, but understanding the process is key to ensuring a smooth journey. At Clifford & Partners, we’re here to guide you every step of the way.
- Before You Begin
Before you start your property search, it’s essential to:
- Organise your finances to ensure you’re ready to proceed quickly when you find the perfect property.
-
Account for additional costs – typically around 13% of the purchase price. These cover taxes, legal fees, and other expenses:
- Resale Purchase Tax (ITP): 10% of the purchase price (8% in Murcia).
- New-Build Purchase Tax (IVA): 10% (Spanish equivalent to VAT).
- Stamp Duty (Actos Jurídicos Documentados): 1% for new-build properties.
- Notary Fees & Land Registry Fees: For preparing and registering the property deeds.
- Plusvalía Tax: Paid by the seller for resale properties, but payable by the buyer for new builds.
- Securing Your Property
Once you find your ideal property and agree on a price:
- Pay an initial deposit (normally €3,000) to take the property off the market and secure the agreed price.
- A contract of sale is drawn up, specifying the completion date. An additional payment (bringing the total deposit to 10% of the purchase price) is made, and both parties sign the contract.
- Completion Day
On the completion day:
- Both buyer and seller (along with legal representatives) meet at the notary’s office.
- The outstanding balance is paid, typically via bank transfer or banker’s draft.
- After signing the required documents, the property deeds are exchanged, and you officially become the legal owner of your new home – complete with keys in hand!
- Due Diligence: What Your Lawyer Should Do
To protect your investment, it’s critical to perform thorough checks. Your lawyer will:
- Obtain a Nota Simple (an extract showing ownership, property details, and any debts).
- Review the Property Deeds (Escritura).
- Confirm the latest IBI receipt (local property tax is up to date).
- Obtain a Community of Owners Certificate (if applicable).
- Key Documents You Need
When purchasing a property, you’ll need:
- Contract of Sale (Contrato de Arras): A pre-sale agreement outlining the terms of the purchase.
- NIE (Foreigner Identification Number): Required for any property transaction in Spain.
- Proof of Payment: Bank statements confirming your financial capacity.
- Mortgage Details: If applicable, provide your mortgage contract.
The Roles of Professionals
The Notary
The notary is a public official who:
- Ensures all documents are legal and valid.
- Confirms that both parties meet their obligations.
- Issues the new deed of sale after finalising the transaction.
The Lawyer
Hiring a lawyer is highly recommended. They will:
- Conduct legal searches and ensure the property is free of debts.
- Draft and review contracts.
- Represent your interests during negotiations.
- Assist with NIE applications and opening a Spanish bank account.
- Liaise with the notary to ensure a seamless transaction.
Why Choose Clifford & Partners?
At Clifford & Partners, we combine local expertise with personalised guidance to make buying your Costa Blanca dream home straightforward and stress-free. From your initial search to receiving the keys, our team works diligently to ensure every step of the process is clear, efficient, and enjoyable.
