Buying a house in Spain step by step: time, paperwork, costs

There are a lot of myths floating around the topic of buying a house in Spain, and online guides written by people who don’t deal with the subject on a daily basis add to the doubts…. and what are the formalities really like when buying a house in Spain and how long does the process take?

– It happened to us that it took a week to complete all the paperwork. – says Alan Narkiewicz, general director of Get settled on the Costa Blanca.

Below we have collectedy a dozen years of our experience to make understanding the paperwork as simple as possible.

Below is a discussion of the most important aspects, namely:

• Buying a house in Spain – formalities
• How long does it take to buy a house in Spain?
• How much are the fees when buying a house in Spain?

If you have additional questions and the following text did not answer them, please contact us by email.

• Buying a house in Spain – formalities

It is difficult to give a clear answer about the number of steps or time it takes to buy an apartment in Spain. Some people come to us because they were enthralled by a particular offer and immediately move on with the buying process. Others first search for a long time for a suitable region, then review the offers on their own and only then decide to buy one of them…. The following is a universal description of the process of buying real estate in Spain at a glance.

Signing of the preliminary agreement

As in Poland, the process of buying most homes in Spain begins with the signing of a preliminary contract. This guarantees, on the one hand, that the customer will reserve the property, and on the other hand, the seller can count on the buyer not to go awry either. The signing of the preliminary agreement is accompanied by advance payment in the amount of. min. 10 percent.

Opening an account with a Spanish bank

If a house in Spain is to be bought on credit, you will need to open an account with a Spanish bank beforehand. In addition, your own account allows you to administer your property later (such as paying rent or utilities).

Making a number NO

The equivalent of the Polish TIN given to foreigners is, in Spain, the Numero de Identificacion de Extranjero, which is necessary for anyone who acquires a property and intends to pay the tax due in connection with it.

A visit to the notary

It is slightly different for new apartments and units from the secondary market, but in both cases the contract will be signed at a notary. While an attorney (such as an estate agent) can be appointed, most often buyers come to Spain for the signing of the contract – and this is, for many, really the only time in the property buying process when they have to appear in person in Spain.

Grant of mortgage loan

If the Investor is going to take a loan from a bank in Spain, you will also need to take into account additional steps: providing us with documents to examine creditworthiness (information about your real estate, PIT, account and BIK statements), receiving a loan offer from the bank, signing a loan agreement and, finally, disbursement of the loan, which usually takes place simultaneously with the signing of the house purchase agreement. In this situation, you will also need to come to the bank in person.

• How much are the fees when buying a house in Spain?

You can easily find market data and compare property prices in Spain. However, there is another topic to reckon with during the process of buying a property, and that is after-sales fees. The total is ca. 11 percent. The value of the property itself.

• Property purchase tax – the amount depends on the province (e.g. in the region Valencia – 10 percent. value of the purchased property).
• Notary costs – their amount depends on the value of the property.
• Land registration – the amount of the fee depends on the value of the property.

Total Notary costs and registration in the land registry should amount to approx. 3000 – 3500 euros.

• In the case of real estate on credit, in addition: the bank’s commission, the fee for the property appraisal, stamp tax, the fee for assistance with the credit procedure (filling out thenot an application, preliminary capacity assessment). That’s a total of approx. 1.5-2 percent. The value of the purchase transaction.

It is a good idea to include these expenses in the calculations even before signing the contract. We, of course, inform our investors about them in detail in advance. Banks require documentation of the funds allocated to cover these costs in addition to their own contribution.

Important: most of these fees do not have to be paid at once, but over a period of approx. 30 days from the signing of the purchase agreement.

• Summary: How long does it take to buy a house in Spain?

Unlike countries where bureaucracy makes it difficult for foreigners to invest freely, buying property in Spain is relatively easy.

• Much depends on whether the client buys the house with cash or must first apply for a loan. In the former case, it happened to us that all the paperwork took only a week. With a loan to buy a house in Spain, the whole thing can take up to two months. Most often it is 4-6 weeks. – says Alan Narkiewicz, general director of Get settled on the Costa Blanca.

Each case is slightly different, so if in doubt, feel free to contact us.