Buying property in Spain, from initial reservation through the signing of Title Deeds at the notary, can take anywhere from two weeks to over a year. The duration depends on the documentation, circumstances, and preferences of both the buyer and the seller. Typically, the process takes between two to four months, with urban properties in towns generally closing faster than rural homes in the countryside. Here’s an overview of the 10-step process for purchasing a house in Andalusia.
1. Preparation
- Budget and Costs: Determine your budget, including all purchase-related expenses.
- Area Research: Explore different areas to identify where you’d like to buy.
- Select Professionals: Choose one on of our recommended real estate agents and lawyers to help navigate the buying process and avoid potential issues.
2. Viewings
- Property Inspections: Arrange viewings with your real estate agent.
3. Verbal Price Agreement
- Initial Agreement: Reach a verbal agreement on the price. For rural properties, include DAFO (land-use compliance) costs.
- Power of Attorney: At this point, you may sign a Power of Attorney to authorize your lawyer to act on your behalf.
4. Signing the Reservation Contract
- Reservation Agreement: Sign a short reservation contract with the real estate agent and pay the reservation fee.
5. Part 1 of Legal Investigation
- Initial Checks: Your lawyer will check records with the Cadastre, Land Registry, and Town Hall.
- Additional Checks: Optional but recommended steps include official property measurements, structural surveys by an architect, and property valuations for mortgage purposes.
- Administrative Setup: Obtain a fiscal NIE number and open a bank account for service payments.
6. Signing the Private Purchase Contract
- Detailed Contract: Sign a comprehensive purchase contract drafted by your lawyer, accompanied by a 10% down payment.
7. Part 2 of Legal Investigation
- Final Preparations: Your lawyer will apply for necessary certificates, arrange financing, prepare the purchase deeds, and perform a final property check.
8. Signing Title Deeds (Purchase Deeds)
- Official Signing: Sign the Title Deeds at the notary’s office, completing the final payment.
9. After-Sales Service
- Registration and Taxes: Your lawyer will register the property in the Land Registry and Cadastre, pay taxes, and manage the transfer of utility contracts (electricity, water, property tax, community fees).
- Mortgage Processing: If you have a mortgage, the bank will handle tax payments and Land Registry inscriptions.
10. Final Balance Meeting
- Closing Meeting: Meet with your lawyer to finalize all matters and sign Spanish wills at the notary, if necessary. You may also apply for a rental license if you plan to rent out the property.
Quick Completions and Delayed Purchases
Depending on mutual agreement, certain steps such as the reservation contract or private purchase contract can be skipped for a quicker completion. Conversely, the signing of Title Deeds can be delayed due to legal complexities, financial arrangements, or the current rental status of the property.
By understanding and following these steps, you can navigate the Spanish property buying process with confidence and ease.
Costs of Buying Property in Spain
Total Extra Costs: Expect to pay an additional 11-13% of the property price for existing homes in Andalusia, excluding mortgages.
Key Fees:
- Transfer Tax (ITP) or VAT: 6-10% for resales, 10% for new builds.
- Stamp Duty: 1-1.5% of the property price.
- Notary Fees: €600-€875, depending on property price.
- Land Registry Fees: €400-€700.
- Legal Fees: 1-2% of the property price.
- Other Costs: Mortgage fees, agent commission, surveys, utilities, home insurance.
Example for €100,000 Property:
- Notary Fees: ~€850
- Land Registry Fees: ~€400-€700
- VAT (New Home): €10,000
- Legal Fees: ~€1,000-€2,000
- Stamp Duty: €1,000-€1,500
Advice:
- Use your Lawyer: always ask your lawyer for a detailed offer and don’t leave the legal investigation or after-sales to the real estate agent to save costs. All costs are paid to/through the lawyer in a full-service house purchase. We have contracts with some of the best lawyers in Andalusia with fixed rates to help you.
- Budget Wisely: Include all additional costs to avoid surprises.
By understanding these costs and working with local professionals, you can smoothly navigate the property purchase process in Spain.
Contact us today to get you started on your home journey!
