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Buying property in Spain, like any other European country, has its own
distinct Process and arrangements for successfully completing a purchase.
Contrary to much media Scaremongering this is generally a very simple,
professional and painless sequence of Events. Below we outline the typical
Spanish property buying process:
1. Once you have found the property that you wish to buy the local agent
would normally provide you with a local, reputable solicitor who will
oversee the sale. On your initial meeting with the solicitor you will be
advised that a small reserve deposit, usually around 1000 euros, is
required to take the property off the market and to ensure that it
does not become unavailable whilst you are completing your purchase.
This holding fee is valid for 30 days and under Spanish law is only
refundable if your solicitor finds problems with the paperwork and advises
against the purchase.
2. After the solicitor has checked with the
local registry that the property has no
‘strings attached’ in the form of multiple
ownership, deed issues or debts against
the property, you can confidently enter
into a purchase contract (contrato privado).
This contract outlines an agreement on
price and completion date and is
accompanied with the payment of a 10%
deposit directly to the vendor which is
non-refundable should you fail to complete
the purchase in the specified time.
If the Seller withdraws from the sale after
the deposit has been paid then they have to
return double the deposited amount back to
you.
3. Once contracts have been signed then the ‘Escritura de compra-venta’
is drafted. This is taken by you and/or your solicitor to a local notary to
have the sale completed and signed by both parties. The notary is a
government official and therefore is simply there to identify both buyer and
seller and witness the signing and dating of the transaction. The Escritura
is then sent to the registry office and returned to you within 6 months.
Fees
Solicitors - Range from a flat rate of 1% often between 1200€ - 2000€.
Notary - Fees range depending on the value of the property.
New Property/ resale tax - Both levied at 7% of the Escritura value.
Total fees - Usually around 10% of the property value.
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