Tips for buying a new home in Spain

The number of candidates who wish to buy property in Spain has continued to increase in recent years, and for good reason, the prices there are attractive and the pace of life very pleasant. Indeed, Spain is one of the few European countries where the sun is present almost all year round. Moreover, investing in the euro zone saves investors from heavy administrative procedures. The only thing you need to do before making any transaction is to apply for an identification number for foreigners. Although it is relatively easy to buy real estate in Spain, you still need to be aware of the common pitfalls that arise.

Define the characteristics of the property sought

The first thing to do before buying real estate is to precisely define the characteristics of the property you are looking for. The usual criteria to be taken into account are the style of the property, its area, the number of bedrooms, the view, the terrace, the bathroom and the presence or not of a garden. Warning ! The architecture and decoration of Spanish houses have nothing to do with those of French houses. Also, you need to be open-minded.

You will also need to define the purpose of this acquisition. Do you need it to live there, quickly or not, to stay there part of the year or do you plan to rent it? This is important, because if you want to make this accommodation a stopover for tourists, you will need a tourist license which is quite difficult to obtain.

Visit the property if possible

Not living there, you will have difficulty visiting the property you plan to buy, especially if it has not yet been built. Certainly, the internet allows you to visit it virtually, but this is without counting on real estate agencies which engage in fraudulent practices which consist in fooling you as to the real nature of the property in question.

So, if your budget allows it, it is best to go directly to the site to make your own opinion on the property and the location. If this proves impossible, you must fall back to a quality apartment hunter or agency.

Find out about the real price of the property

In Spain, the same property may be put up for sale by its owner and the agencies that represent it at very different prices. You must therefore identify the exact price of the house or apartment.

As foreigners are more and more interested in real estate investments in Spain, some professionals could benefit from it. It is only after knowing the exact value of the real estate that you should begin negotiations.

Learn about the location of the property

Long before entering into a contract and paying the amount due, find out about the current situation of the property. If in doubt, go there or mandate a person to inspect the area and the hidden defects if the property has already emerged.

Another tip: ask the seller to provide you with what is called the most recent nota simple informativa. This document is proof that the building for sale is actually owned by the seller. He also mentions the ways in which he acquired it and whether there is another person who owns it.

It will also be necessary to request copies of important documents such as the extract from IBI (ipuesto sobre bienes), the equivalent of the property tax, the minutes of the owners' meeting and the last receipts for the payment of gas, water and electricity. With these documents, you will know if the building is free of charges or not (if already existing of course).

Reserve the property

When everything seems to be in order, you will then have to reserve the property you want. To materialize this reservation, you will have to go through what the locals call the “Paga y señal”. It is quite simply a question of paying an advance whose amount is between 1000 and 3000 € to deposit with the owner of the property or with the real estate agency. If in the end, you do not come to an agreement during the price negotiation, this sum of money will be returned to you. In case of agreement, the next step is the compromise of sale contract. By signing this contract, you confirm to the seller your intention to buy at the agreed price.

Provide a NIE and a current account in Spain

Obtaining a NIE (identification number for foreigners ) is compulsory. If the purchase was made by more than one person, each of them must have their own NIE on the day of signing.

Although this is not a prescription, you must have a current account in a bank in Spain, because the payment of taxes and purchase costs is to be paid into an account. It will also save you from transaction fees which can be exorbitant for regular invoices.

Finalize the transaction with a notarial deed of purchase

In Spain, the transfer of a property from one person to another must be certified by a notary chosen by the buyer. This agreement takes place between 4 to 8 weeks after the signing of the sales agreement. During this meeting, the notary will check many aspects of the sale, among others, the NIE, the passport, the identity card, the title deed of the property, the certificate of habitability and the domestic invoices.