To buy a home in Spain

Buying Property in Spain

Buying a property in Spain can differ from the process in other countries. At SkandiaMäklarna Real Estate, we offer you the experience and expertise needed for you to feel secure and comfortable in your real estate transaction. We help you find your dream home and guide you through the financial and legal issues that may arise.

Have you found a property you want to take a closer look at?

Contact your nearest SkandiaMäklarna office in Spain or the Canary Islands for more information from the broker and to book a viewing, either in person or a digital viewing. During the viewing, we offer you the opportunity to explore the properties that suit your preferences and familiarize yourself with the area. Our brokers are happy to share information about popular beaches and restaurants, the locations of grocery stores and hospitals and of course tips on golf courses and Padel courts in the area.

NIE Number

To own a property in Spain, you need to have a Spanish tax identification number, known as an NIE number. Only then can you open a bank account and sign the deed. You can apply for an NIE number at the Spanish police, the Spanish embassy, or consulate in your home country. The simplest way might be through an agent via power of attorney at the Spanish embassy or consulate in your home country or directly at a Spanish police station. Obtaining an NIE number takes varying amounts of time depending on the region of Spain you are in.

Additional Costs Beyond the Property Price

When you have found a new home, the price is usually negotiated between the seller and the buyer. Properties are sold in their existing condition, and it's common for furniture to be included in the purchase of a used property. New constructions, on the other hand, are usually empty at the time of purchase. In addition to the purchase price, there are taxes and costs of approximately 10-15%. This includes transfer tax, stamp duty, notary fees, and VAT. Costs differ between new constructions and used properties. Spain consists of 17 autonomous regions and over 8,000 municipalities. The costs vary between these regions, so contact your nearest office for information specific to the property you are interested in.

Taxes

Transfer Tax: For used properties, you pay a transfer tax of approximately 7-11% of the purchase price.

VAT and Stamp Duty: For new constructions, you pay a VAT of around 10% and stamp duty of approximately 1.5%.

VAT Duty: This ranges from 0.5-1.5% of the sales price.

Notary and Registration Fees: A cost set by the Spanish government, usually ranging from €500 to €2,000.

Legal Costs: Approximately 1% + tax of the purchase price, but may vary depending on the complexity of the contract.

Loans: The setup cost for new loans varies among different banks in Spain, but a good guideline is around 1% of the total loan amount.

Property Tax: Even if you are not registered in Spain, you pay a municipal property tax of 0.5-1.2% of the assessed value.

Connection Fees: Upon taking possession, there are connection fees and/or fees for changing subscriptions for water and sewage, electricity, and any gas connections.

How Does the Purchase Process Work?

Once you, the seller, and the broker have reached an agreement, a Reservation Agreement is drawn up, specifying details such as price and access date. At this point, you pay a reservation fee of €6,000-€20,000.

Purchase Contract: When the purchase contract is signed, a down payment is made, usually amounting to 10% of the purchase price minus the reservation fee already paid.

Additional Costs: In addition to the purchase price, there are taxes and costs of approximately 10-15%. This includes transfer tax, stamp duty, notary fees, and VAT. Costs differ between new developments and old properties.

Possession: The time from the reservation agreement to access date varies between different properties, but it's often possible to get a quick access date. It's important for the buyer to have time to make preparations, especially regarding financing and obtaining an NIE number, which usually takes about 4-6 weeks. On the possession day, you receive the keys and can move in.

NIE Number: To own a property in Spain, you need a Spanish tax identification number, known as an NIE number. Only then can you open a bank account and sign the deed. You can apply for an NIE number at the Spanish police, the Spanish embassy, or consulate in your home country. The simplest way might be through an agent via power of attorney at the Spanish embassy or consulate in your home country or directly at a Spanish police station. Obtaining an NIE number takes varying amounts of time depending on the region of Spain you are in.

Deed Registration: The deed is registered at the land registry, which takes approximately 2-3 months. Once it's registered after all taxes and fees are paid, you receive it back with the registration certificate.

Notary Public

A Notary Public is an officially appointed lawyer whose task, in this case, is to verify the identity of the parties involved. The Notary does not inspect the condition of the property; as a buyer, it is your responsibility to inspect the property before signing. In Spain, the purchase of used homes is typically sold "as is" or in "existing condition." The Notary informs about any debts related to the property, checks that the payment made to the seller complies with Spanish law, and ensures that the seller has received their funds before signing. They also prepare the purchase deed, which forms the basis for your deed application.

Duty to Inspect

As a buyer, you are responsible for thoroughly inspecting the property before signing the purchase contract. Any exceptions to this should be stipulated in the purchase contract. SkandiaMäklarna Spain can recommend several skilled independent technical architects.