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Buying Spanish Property

Once you have decided on the Spanish property you wish to purchase, an initial reservation deposit will need to be placed of between 3000 and 6000 euros, then a full deposit of 10% of the purchase price is required as official confirmation of your intent to buy that Spanish property. The remaining 90% is payable on the signing of the title deeds at the Notary (normally 70-80% is with a mortgage).

If you are purchasing a new construction then the developer may ask for stage payments to be made on the property. These can vary dependent on the constructor and the length of time remaining to completion of the property.

Appointing a solicitor (abogado)

We will appoint an abogado that speaks your language to deal with the purchase your property in Spain. They will be able to do the necessary searches and check out any outstanding debts that may exist on the property as well as help with contracts and NIE numbers(see below). They will also check the legal paperwork and make sure the property has the required permissions. You are free to appoint a solicitor of your choice,or if you prefer we can recommend one.

NIE number (Numero de Identificacion de Extranjeros)

It is essential to have an NIE number for any financial dealings you may have in Spain, including buying Spanish property. Obtaining an NIE number is a simple process that will normally be dealt with by your 
solicitor at the same time you make your purchase and the price for this is generally included in the fee for the conveyancing. However, you can apply for one separately via a Gestor (fiscal representative) who will 
normally charge around 30 or 40 Euros.

Applying for a Bank Account

It is necessary to have a Spanish Bank Account to purchase a property in Spain, it will also be used for direct debits for all future bills on your property e.g. electricity and water. Again, the solicitor will 
usually make all the arrangements for you at the same time as the Conveyancing. If you prefer to arrange a bank account yourself we can help with recommending good local banks with staff that speak your 
language.

Applying for a Mortgage

You can choose to apply for a mortgage in Spain or from the UK. Mortgage rates in Spain tend to be slightly lower than in the UK, currently around 3.25%. Spanish banks will normally lend up to 70-80% of the property value. You will need to prove that you have sufficient income 
and you will also need to put down a minimum 20% to 30% deposit.

It can often be more practical and cost effective to simply re-mortgage your home in the UK. We can arrange for a consultation with a fully qualified and independent mortgage advisor if you would like to discuss your options.

The Notary(Notaria)

This is a lawyer appointed by the Spanish government to witness the signing of all legal public documents. In this case the title deeds (escritura) of the property. He represents both the buyer and the seller. The 
Notary fees are around 0.5% of the purchase price of the property and must be paid at the time of the signing of the deeds.

The Original signed document is retained by the Notary who will apply for a formal change in the land registry. The purchaser will receive an initial legal copy of the title deed which is signed and stamped by the Notary. The official title deed can take a while to be processed and until then this is your official proof of ownership and must be kept in a secure location.

Purchase Taxes and fees

We recommend that you allow a sum of around 9 to 10% of the price of the property to cover payment of purchasing fees e.g. land registry fees, notary fees, legal fees, transfer taxes.

If you are purchasing property in Spain we suggest you consult with a professional financial adviser beforehand to discuss any possible financial/tax implications regarding Spanish or UK income tax, capital 
gains tax or inheritance tax.


Important Note

The above information is intended to outline in brief the current rules 
that are presently in operation and is intended as a guide only and in 
no way as a substitute for professional advice .