Buying property in Spain is an exciting venture! Our dedicated team specializes in guiding you through every step of the process. From selecting the ideal property to connecting you with trusted legal professionals, we’re committed to making your dream home a reality. For us, it’s not just about buying a property; it’s about investing in a lifestyle that suits you. Let us help you find your perfect piece of Spain.
Purchase Expenses
When buying property in Spain, you’ll encounter purchasing costs calculated as a percentage of the property’s price. These costs differ slightly depending on whether you’re acquiring a new property or a resale (pre-owned) one. For new properties, the buying costs are typically 14%, while for resale properties, they can reach 10%. Keep in mind that additional expenses, such as taxes related to setting up a Spanish mortgage, can add one to two percentage points to these costs.
Most of Beluxe clients visit Spain to explore available properties. Weekend visits are possible, but it’s advisable to spend one working day in Spain to facilitate crucial and cost-saving steps for buyers. These steps include visiting a Spanish Notary, signing a Power of Attorney allowing your lawyer to sign contracts on your behalf, opening a Spanish bank account, instructing your independent lawyer to apply for your N.I.E. (Spanish identity number for non-residents), and possibly meeting an English-speaking local bank manager to discuss mortgage applications and explore favorable mortgage deals.
For new Spanish properties, the total buying costs range between 10% and 14%, depending on whether you opt for a new build property or a resale property.
Spanish Legal Assistance
Beluxe recommends a panel of independent Spanish lawyers who specialize in conveyancing and are fluent in English. They are all members of The Bar Association of Malaga, and their staff can communicate in various European, Scandinavian, and Russian languages. Understanding all aspects of the buying transaction is essential.
Reserving Your Property
The initial step involves formalizing your property purchase and taking it off the market. This is achieved by signing a Reservation Agreement and making a deposit, typically around €10,000, into the independent lawyer’s client account. The reservation deposit also secures the property price.
Your lawyer will then request all property-related documents and commence the necessary searches. Once these searches are satisfactorily completed, they will sign the Private Contract on your behalf with your written authorization. Alternatively, you can personally come to Spain to do this.
Mortgages
The most common type of mortgage in Spain is the capital and interest or repayment mortgage. In a competitive market, mortgages with an initial exclusion period might be available. With capital and interest mortgages, you repay a portion of the principal and the accrued interest monthly, ultimately fully repaying the loan by the end of the term.
BExclusion period mortgages (typically 24 months) involve initially paying only the interest, transitioning later to capital and interest payments. Non-residents generally receive mortgage offers covering 60% to 70% of the property’s purchase price (not its valuation). However, Beluxe can secure up to 80% mortgages for residents of Spain.
Completion
(Signing the Title Deeds)
All properties are sold with clear title, meaning that any outstanding debts, including existing mortgages, property taxes, waste collection charges, community fees, and utility bills, will be settled by the seller before completion or agreed upon as part of the completion process.
Your lawyer will then finalize the taxes and charges, as previously detailed, and provide you with a comprehensive breakdown of all expenses. During this process, you can already start enjoying your new home in the sun!
Our team are here to answer all of your questions
If you have any questions about any of the properties listed on our website and would like to find out more, our team will be happy to help! Fill out the form and one of our team will be in touch ASAP, or contact us directly by phone or email.