Purchasing a property in Spain as a foreigner can seem overwhelming, especially if you're not sure where to begin. At Javea Casas, we understand the challenges involved, and we’re here to help guide you through each step of the process. Follow this guide to ensure a smooth and successful property purchase in Spain.

1. Obtain Your NIE Number

The first step in buying property in Spain is obtaining your NIE number (Número de Identificación de Extranjero). This is an identification number required for foreigners who wish to carry out transactions in Spain, such as purchasing property or opening a bank account. It’s essential for all non-residents planning to make investments in Spain.

2. Open a Spanish Bank Account

Once you have your NIE number, the next step is opening a Spanish bank account. This is necessary for paying taxes, fees, and the property purchase itself. Having a local account also simplifies the process of managing payments related to your property.

3. Mortgage Pre-Approval

If you need a mortgage to finance your property, it’s advisable to conduct a feasibility study before falling in love with a property. Banks like CaixaBank specialize in working with international clients and can confirm whether your mortgage is viable within 72 hours via their online platform.

4. Start the Property Search

At Javea Casas, we’re ready to assist you in finding the perfect property. Whether you’re interested in a villa, apartment, country house, or a plot of land, we will work with you to understand your requirements and preferences. We’ll help you search for properties online or in person, and we’ll organize viewings at your convenience.

5. Negotiating and Reserving the Property

Once you’ve found your ideal property, it’s time to begin negotiating the price. We will handle the negotiations for you to ensure you get the best deal. Once a price is agreed, the next step is to reserve the property.

Reservation Contract

When both parties agree on the price and the deed signing date, a reservation contract will be drawn up. This contract includes all details such as whether the property will be sold with furniture and the timeline for payments and ownership transfer. At this point, the buyer will pay a reservation deposit ranging from €3,000 to €10,000. The property will then be marked as "reserved," and no further viewings will take place.

6. Legal Due Diligence

Your legal representative will now liaise with the vendor’s legal team to review all the property documents and conduct due diligence. This step ensures that everything is in order before proceeding with the sale.

7. Private Sales Contract (Contrato de Arras)

Next, a Private Selling Contract (Contrato de Arras) will be drafted and signed by both parties. At this stage, you will pay 10% of the agreed price (minus the reservation deposit). This typically happens 2 to 4 weeks after the reservation contract has been signed.

8. Finalizing the Purchase: Signing the Deeds

The final step is to sign the deeds in front of a public Notary. Both legal representatives will agree on a date for the signing, where the remaining payment will be made, and ownership will officially transfer to you. This process usually takes place 6 to 8 weeks after the reservation contract.

9. Transfer of Service Contracts

Once you become the official owner, your lawyer will take care of transferring all service contracts (electricity, water, etc.) into your name.

Additional Costs When Buying Property in Spain

When purchasing property in Spain, it's crucial to account for additional costs, which can vary by region. In the Valencian Community, these costs typically range from 12% to 12.5% of the agreed purchase price. Here’s a breakdown of what to expect:

For second-hand properties:

10% Transfer Tax (Impuesto de Transmisiones Patrimoniales)

1% Notary Fees

1% Land Registry Fee

For new build properties:

10% VAT (IVA)

1.5% Tax on Documented Legal Acts (AJD)

Total additional cost: 11.5%

For land, garage spaces, or commercial properties:

21% VAT instead of transfer tax.

Make sure to factor in these additional costs when planning your property purchase in the Valencian Community.

Conclusion

Buying property in Spain doesn’t have to be stressful. With the right guidance, the process can be straightforward. At Javea Casas, we’re here to help you at every step, from obtaining your NIE number to finalizing the deal and beyond. Contact us today to start your journey to owning a beautiful property in Spain!