Spain is an extremely popular destination for the ex-pats looking for extraordinary climate, high living standards, and, of course, mouth-watering delicacies.
Whether you are thinking about living in one of Spain’s cities or simply retiring yourself to one of the coasts, you will have to go somewhere to live.
Renting is always an option that is always available, but having your own home to relax gives you a sense of accomplishment.
However, buying a real estate property in Spain is not an easy task. This is the reason why we are here. This guide will help you through the steps needed to buy a real estate property in Spain.
If you don’t want to go through the hassle and are here only for the solution, visiting Right Casa might solve your problem. Right, Casa has been in the real industry and has some of the best property to offer.
That being said, let’s move on with the article and see the necessary steps needed to buy a new property in Spain.
How To Buy A New Property In Spain?
If you are thinking of buying a real estate property in Spain, now is the time.
The Spanish real estate market has seen a boom in the last couple of years, especially after the pandemic. Due to a decrease in the buyer, the price of some of the best properties has reached ground dirt.
What? You don’t know the steps to take you through the buying process.
Do not worry! We have got you covered.
Below we have enumerated the steps that guide you from finding to purchasing your dream home in Spain.
Step1: Get Your NIE
NIE is a unique tax identification number in Spain. It is necessary for the non-citizens of Spain to have their own NIE to buy a property and pay taxes. So, if you are looking for property in Spain, NIE needs to be your first step.
Step2: Open A Bank Account
Buying a property in Spain means you need to have a bank account in Spain or any European country. You might think that any bank account will do, but in the case of buying property in Spain – no, it will not! The moment you plan on buying a property in Spain, apply for a native banking service.
Step3: See Whether Or Not You Need Mortgages
Do you need any mortgages?
Go through your funds and see how stable you are – financially. This will help you understand whether or not you need any mortgages.
Here you can take advantage of the new bank account you have opened. See how much you can get in mortgages. Who knows, you might get some of the best deals to work with.
Step4: Check The Property With An Expert
The next important step is to check the property with an expert. Whether you are a citizen of Spain or a foreigner, this step is important.
Important checks of the property:
- The land registry.
- Ensure that planning permission has been obtained.
- Ensure there is no outstanding debt with the property.
- Confirm documentation.
- Check the property and match it with how it has been described in the document.
Step5: Find A Lawyer
It is important that you work with a lawyer. The lawyer will guide you through all the legal policies that you would need to understand before buying a property in Spain. In addition, they will help you validate the documentation process and ensure that everything is OK.
Step6: Sign The Contrato De Reserva
Once you have a lawyer at your disposal, you can move forward with the “Contracto De Reserva”. After signing this contract, you express your intent to purchase the property and remove it from the market.
The better way to call this contract a reservation contract. It reserves the property for you. You would be charged a holding fee. You will have almost three weeks to complete the paper works and get the property for yourself.
Step7: Sign The Contrato De Arras
Along with the Contrato De Reserva contract, you will also be asked to sign the Contrato De Arras. It is a private contract that binds you and the property seller. According to this contract, you would have to pay 10% of the total property value in the first 10 days.
As soon as all the legal checks have taken place, you would be required to sign in the private purchase and state the full price of the property.
Challenges Faced While Buying Property In Spain
While many countries have similar protection in places, a few minor pitfalls might cause problems while buying a new property in Spain.
Below we reveal some of the minor mistakes that can result in expensive ventures.
i. Registry issue:
While buying a new property in Spain, you must be aware of the registration of the property. Some of the property in Spain has never been officially registered due to the area being close to the national park or beach.
ii. Financial issue:
These kinds of properties have financial issues. You might end up buying a property that already has debts to pay.
iii. License issue:
In Spain, building permits are required to build a new property. Ensure that your property is licensed.
iv. Contractual issue:
Don’t ever think that the law of the UK is applicable in Spain. Yes, you will find some laws being common, but they do differ from state to state.
Buying a property in Spain is like a dream come true. However, dreams are expensive, and so is real estate property in Spain. Then there come the mountains of paperwork that can make the whole process even more complicated.
If you want to buy a property in Spain, it is a good idea that you start your search after hiring a lawyer. The lawyer will help you cover all the legal aspects of the property and will ensure you are not being scammed.
That being said, if you can follow the steps mentioned in this article, you will have no problem getting the right property for yourself.