Guide to Common Questions on Property Acquisition in Spain: Legal and Practical Aspects
In this document, we will address the most common queries about buying and selling property in Spain. If you are planning to buy your first home or invest in real estate, we aim to provide you with the key information you need.
Where to start? It is essential to analyse the sector to understand current costs and trends, choose a suitable location and define a budget. We recommend hiring a local real estate agent and a lawyer who is an expert in Spanish real estate law. Also, if you do not live in Spain, it is crucial to obtain a NIE, which is necessary to carry out real estate transactions in the country.
The Importance of a Lawyer in Real Estate Acquisition
Although it is not compulsory by law to use a lawyer when buying a property in Spain, it is highly advisable. A lawyer will help you with legal verification, review of contracts and ensure that Spanish property regulations are respected. It will also help you deal with the complexities of the Spanish property market, particularly for those buyers or sellers who are not resident in the country.
Essential Legal Documents
One of the most essential and often controversial documents is the ‘Nota Simple’, which confirms the ownership, the legal status of the property, and possible existing encumbrances and restrictions.
Acquisition of Property by Foreigners
Foreigners have the ability to acquire property in Spain without specific restrictions, although they must adhere to certain financial and legal requirements.
Common Purchasing Mistakes
Among the most frequent failures is the failure to verify the legal status and encumbrances of the property, as well as the failure to consider additional costs such as taxes and legal fees, community fees and building licences.
Additional Purchase Costs
Additional costs can be between 8% and 12% of the purchase price of the property. Depending on your circumstances, you will be subject to transfer tax (ITP) or VAT.
Inspection of the property
Although not legally required, a property inspection is strongly recommended, particularly for used properties. This is crucial to uncover structural problems and repair needs that could influence the value of the property.
Obtaining a Mortgage as a Non-Resident
Non-residents can apply for a mortgage in Spain, which generally covers only 60-70% of the value of the property. To do this, you will need to provide financial documentation such as proof of income, employment details and your credit history.
Role of the Notary in the Purchase Process
In Spain, the notary has an essential role in the purchase process, verifying the legality of the real estate transaction and ensuring that all necessary documents are accurate and duly formalised.
Public Services
Following the purchase of a property in Spain, it will be necessary to transfer the utilities into your name. This involves contacting the utility companies, providing your NIE and the deed of purchase.
Duration of the Purchasing Process
The time it takes to purchase a property can vary depending on a number of factors, such as the complexity of the transaction, the speed of obtaining the necessary documents and whether there are legal issues to be resolved. Generally, this process can take 2 to 3 months from the initial agreement to completion with the title deed.
Conclusion
In summary, the acquisition and sale of real estate in Spain is a process that, although it may seem complex, becomes more manageable with the right information and the right advice. It is essential to analyse the sector, define a budget and consider hiring professionals such as real estate agents and specialised lawyers.
Documents such as the ‘Nota Simple’ and obtaining the NIE are crucial to ensure a smooth and legal transaction. In addition, it is advisable to carry out inspections of the property and be prepared for additional costs that may arise. Foreigners can also participate in the Spanish real estate market, as long as they meet the financial and legal requirements.
Finally, the role of the notary and the transfer of utilities are important steps in completing the purchase of a property. With careful planning and expert help, you can successfully navigate the Spanish property market. We strongly advise hiring a lawyer toguide you through this process and ensure that everything is done according to the law.