Buyers Note #1: Purchasing in Spain
Dec 1, 2024
Some advice, for informational purposes, regarding the formalism of purchasing real estate in Spain
Contrary to popular belief, buying real estate in Spain is relatively simple and the buyer is very well protected.
All real estate in Spain is registered with the Public Property Registry (Registro de la Propiedad).
The “Nota Simple” is a simplified document issued by the Public Registry which shows the name(s) of the property owner(s) as well as any debts, liens, seizures, or other mortgages.
The “Nota Simple” also details the characteristics of the property (size, number of rooms, floor, annexes, etc...).
Any new foreign owner purchasing real estate in Spain must:
Obtain a foreigner identification number (N.I.E): often you will be assisted by your real estate agent in carrying out these steps.
Open a Spanish bank account to arrange for the payment of community fees, electricity, water, and local taxes.
There you have it, you've found your 'Dream Invest'!
The real estate agent who has helped you in your search will advise you to secure the chosen property with an 'Option' so that it is taken off the market, allowing you to start the necessary administrative and legal procedures as is appropriate for any real estate acquisition.
Once the 'Option' has been signed, you will then be able to start the financial procedures binding you to the property.
The reservation contract and the services of a specialized Spanish lawyer
The signing of the reservation contract between the seller and the buyer allows the property to be taken off the market.
At this precise moment, you will be asked to pay a reservation deposit into the bank account of your real estate agent or more commonly into the bank account of the Spanish lawyer you have chosen.
It should be noted that in Spain, most administrative, tax, and legal procedures related to the purchase of real estate are almost always carried out through a local specialized Spanish lawyer.
For most commercial negotiations for the sale of real estate in Spain, the standard reservation deposit amount is 6,000 euros.
This amount can be increased depending on the value of the property.
Once the reservation contract is signed, your lawyer will undertake all the legal investigations concerning the property (legality and conformity of the property, POS and public registry, check for any debts – mortgage register - local taxes – co-ownership, etc.).
Your lawyer will ensure that your acquisition can be made safely and