Buying a home in Spain is an exciting venture, but the process involves several legal and administrative steps. Here’s a comprehensive guide to help you navigate the purchase smoothly and securely.
1. Pre-Purchase Preparations
✅ Get Your NIE (Número de Identificación de Extranjero)
- This is your foreigner’s tax ID number, required for any property purchase. You can obtain it at a Spanish police station or through a consulate abroad.
✅ Open a Spanish Bank Account
- Not mandatory but highly recommended to handle transactions, pay taxes, and set up utilities.
✅ Secure Financing (If Needed)
- Spanish banks offer mortgages to non-residents, typically covering up to 70% of the property’s value.
2. Choosing the Right Property
✅ Check the Property’s Legal Status
- Ensure the property is registered in the Land Registry (Registro de la Propiedad) and free from encumbrances (debts, mortgages, or disputes).
✅ Request the “Nota Simple”
- This document from the Land Registry provides essential property details, including the owner, boundaries, and debts.
✅ Verify the Urbanistic Situation
- Is the property legally built? Is it located in an area with restrictions? A technical report from iNMOspector ensures there are no legal surprises. We do this for you in our urbanistic report.
3. Signing the Private Agreement (Contrato de Arras)
✅ This preliminary contract secures the purchase by requiring a deposit (usually 10%). If the buyer backs out, they lose the deposit. If the seller backs out, they must refund double the deposit to the buyer.
We frequently check more complicated contracts for our clients. Contact us, if you need support!
4. Obtaining Required Licenses
✅ Certificate of Habitability (Cédula de Habitabilidad) or First Occupation License (Licencia de Primera Ocupación)
- Confirms the property meets living standards (required in some regions).
✅ Energy Performance Certificate (Certificado de Eficiencia Energética)
- Mandatory for any property sale. It is the seller´s obligation to provide this certificate. However, many certificate are merely filled out forms for little money in which the architect never even visits the property. We provide a detailed and real evaluation with implementable improvement suggestions in our Energy Efficiency Certificates.
✅ Building Inspection (ITE – Inspección Técnica de Edificios)
- Necessary for properties over 50 years old in some regions. We also do this as part of our technical inspections.
✅ Tourist Rental License (If Renting Out Short-Term)
- Required in many cities if you plan to rent on platforms like Airbnb.
5. Signing the Public Deed at the Notary
✅ The notary ensures all documents are legal and oversees the signing of the Escritura Pública (public deed). Note that the notary does not visit the property so he cannot certify the urbanistic legality of the buildings or borders. He will merely certify that what’s written on paper is coherent.
✅ The final payment is made, and ownership is officially transferred. Usually a personal check is prepared by the buyer´s bank to be handed over at the notary when signatures are exchanged.
6. Post-Purchase Steps
✅ Pay Taxes and Fees
- ITP (Impuesto de Transmisiones Patrimoniales) – 8% for resale properties.
- IVA (Value-Added Tax) + AJD (Stamp Duty) – 10% + 1-1.5% for new properties. Watch out when buying semi-finished buildings: A 21% IVA may apply!
- Notary and Registry Fees – Typically 1-2% of the purchase price.
✅ Register the Property
- The new owner must register the property in the Land Registry.
✅ Set Up Utilities and Community Fees
- Transfer electricity, water, and gas contracts, and pay the annual IBI property tax.
Need Expert Guidance? We’re Here to Help!
Buying property in Spain involves numerous legal and administrative steps. At iNMOspector, we help you navigate the entire process safely and efficiently. From technical inspections to legal checks, we ensure your investment is secure and stress-free.
📩 Contact us today to buy your dream home with confidence!