Buying A Home In Spain

When it comes to finding the perfect home

you will find it very hard to choose which area of sunny Spain to settle down in as every region is so beautiful and unique! A vast amount of properties are available to potential buyers in anywhere from bustling coastal towns to quiet, picturesque white villages in the mountains.

It is easy for foreigners to search for and buy a property in Spain, as
estate agents have websites that cater for almost every nationality and
language. Even though you don’t need to be a resident living in Spain
to purchase a home here, we strongly recommend that you don’t cut
corners and arrange to see a potential home in person before making
an offer.

Estate agent fees are typically paid for by the seller in Spain, making it
advantageous for buyers to use them as intermediaries when
searching for a property. Most people also prefer to hire a lawyer to
assist them throughout the buying process, especially if there is a
language barrier involved.

The sale and purchase process for a property in Spain will usually start
with the buyer making an offer on the home through the seller’s estate

Should the offer be accepted then both parties will sign a "contrato de compraventa" or preliminary contract,

and the buyer will putdown an amount typically equal to 10% of the sale price as a deposit. The seller by accepting this agrees to take the property off the market, therefore reserving it for the potential buyer.

This is the time to do any surveys or tests on the property, especially if
you are considering buying a rural home or one that is in ruins. We also
recommend you have a lawyer carry out a series of “due diligence”
steps on your future home, such as making sure all paperwork is in
order at the Town Hall and Land Registry (read: that the property and its
ownership is legal) and that there are no outstanding debts owed by
the seller that will be transferred to the buyer once the sale is

After this the buyer (or their lawyer) will then arrange any paperwork
necessary related to a mortgage if they require one, and the “escritura de compraventa” or contract of sale will be signed by both the buyer
and the seller before a notary.

At this point the rest of the money including the full sale price and taxes
must be paid, and the keys are handed over to the new owner. This is
when according to Spanish law, the new owner takes possession and
the ownership is offically transferred.

In order to ensure this process runs as smoothly and hassle free as possible most people will hire a lawyer to guide themand solve any issues or obstacles that may arise.

Having a lawyer will guarantee that you are compliant with Spanish real estate and tax laws at all times and can also help with a possible language barrier and any confusion as to what you are agreeing to throughout the purchase.

Costs associated with the property purchase are usually paid for by the buyer, and will include:

  1. Property transfer tax for existing properties (6-10%) or VAT/IVA for new properties (10%)
  2. Notary costs, title deed tax and land registration fee (1-2.5%)
  3. Legal fees (1-2%)