Spain is a popular country that attracts interest from all around the world when it comes to property. According to data from the source. Foreign buyers accounted for around 12% of all transactions last year and expected figures for 2019 continue to prove a steady growth rate. Average prices per square metre rose over 8% last year versus the previous year although they are still 24% below the level they reached back in 2010. If you want to know how to buy a property in Spain and avoid pitfalls or, perhaps, set to grow steadily in 2019, we can help you with the following information.
1. You should initially do your market research, explore the area as well as the price houses are going for in your desired location. At a later stage, it is highly advisable to get help from a lawyer that is able to check all property documents are verified, taxes paid, any outstanding debt cleared and community bills paid. Remember houses are to be sold free of any sort of debt.
2. Once you have found your dream home and your lawyer has given you the go-ahead, you would need to sign a pre-purchase contract putting down a certain amount as a deposit to book the property and take it out of the market.
3. In order to comply with Spanish law, you will need to apply for a NIE (this is an ID card for foreigners). This can be done either at the Spanish Consulate or the Spanish Embassy in your home country, but also by granting power to the solicitor who will then represent you throughout the purchase.
4. The next exciting step is the signature of deeds. Payment is then taken and the property keys are exchanged. This takes place at the Notary Office of your choice.
5. The final step is having your newly-acquired property registered into your name at the Land Registry Office, which carries out fees for the Notary itself, transmission tax and registry invoice. It is important you change any property bills into your name once the purchase is complete.
6. Have your personal documents in order (ie. NIE) to be able to buy a property legally
7. Make sure you do your research and choose the right location for you depending on your particular needs
8. Check with your solicitor that the property is correctly registered and was not built illegally before you sign a purchase contract and pay a deposit
9. Calculate in your budget the legal expenses to transfer the property into your name. This can be up to 14% of the property value.
10. Do not sign a purchase contract you do not understand or which has not been checked by your solicitor first. This is to avoid problems between the parts.
If you take this piece of advice into consideration you will have a wonderful experience when purchasing a property in Spain. Once you are all settled in your new home, do not forget to send us an invite for a round of sangria!
