Buying a property in Spain
Buying a property in Spain
For some people, it is a long-established dream to own their own holiday home in Spain. For others, a permanent move is ‘the plan’. If you are considering either option, then you will have a list of questions and multiple choices to make. Spain attracts more and more Europeans to its warm climate and laid-back lifestyle, and every year more and more realise their dream, while this is exciting, it can also be nerve-wracking!
To ensure the whole process of property searching and purchasing goes smoothly, you need information. Candid, up to date, factual information is where we at HusmanHagberg come in. We make the best partners in achieving your dream. We are experienced estate agents, with a locally based professional team, who are entirely client focussed. It’s all about your dreams and needs combining with our expertise; from finding properties to local information, we have the answers to questions you have not even thought of yet.
Please feel free to get in touch with us with any queries, questions or concerns you have about any aspect of purchasing a property in Spain.
The buying process – Step by Step
Search property
There are many ways to find your dream home, but before you start looking for a home, it may be a good idea to review your needs and expectations. What is important to you? Should your dream home have a pool, a terrace, a garage? How far from the nearest beach do you want to be? You may have thought about renting out your property, then it is vitally important you know the rules on renting as they apply in different areas. Some areas have banned rentals completely, and other areas require a licence.
Do some research on the areas that interest you, then start to look at the range of homes that are available there, as to your list of requirements and your budget range. Do remember in Spain a property can be registered with several real estate agencies. On HusmanHagbergs website, you will see all the properties currently for sale at our offices. If you wish to contact one of our estate agents with your list of requirements, they will actively search for a property that matches your wishes and keep you updated on what they think will suit you.
Preparation tips
The first plan of action before heading off to Spain is to check your finances. Remember not just to check for the house purchase price but to make sure you have enough to cover the costs of making a house purchase. At HusmanHagberg we can help with the calculations of what your costs could be.
Buying a home abroad can be difficult, mainly because it is a different system than you are used to. We always recommend our clients to hire a legal representative to ensure all the legal processes are completed properly. They will also help you apply for your Spanish Tax number, the NIE number that is required for legally processing your purchase as well as for things like opening a bank account.
Viewing
As you head over to Spain for your viewings, we will prepare for your visit by organising the properties to view at times to suit your needs. These viewings are your chance to experience the homes and the area. You will have time to determine if they feel right for you and your needs. You need to ask yourself some questions like, ‘would I like living here’? Would I have to renovate? Is the kitchen/bedroom, terrace big enough?
It is our job as real estate agents to have the answers to these questions, and more besides. The more information we can give you the better foundation you will have to make your decisions. Something else to bear in mind on your views, resale properties are sold “as seen.”
Making an offer
Bidding on Spanish properties is unusual, although negotiating the price is common practice. The price we specify is the one the seller has stated is acceptable to them. However, after some negotiation between yourselves and the seller, it can turn out, that the accepted price is lower than the advertised price.
Once a price is agreed upon a reservation agreement is drawn up. This includes a reservation fee of between €3,000 – 6,000. This amount is deposited in your estate agents or lawyer’s client account. Once a home is reserved it is removed from the market and all marketing of it ceases.
The contract
The next stage of your property journey is the signing of the purchase contract. You and your legal representative will go through all the legal documents and the purchase agreement, how the deposit is to be paid and if there are any other terms apply.
Once satisfied and all the paperwork is in order the contract will be signed and at this time a down payment is made which is normally 10% of the purchase price. This is usually made into your estate agents or lawyers client account.
Final payment & exchange of keys
The final step of your property journey is getting access to your new home. Prior to receiving the keys, you, along with your estate agent and the seller will meet at the Public Notary. If you cannot be present for this your legal representative can represent you by proxy. All the final payments are now to be settled and the remaining part of the purchase price for the property needs to be paid. Then we ensure all the keys for the property are handed over.
Following completion
Once the purchase is complete now, it is time to move into the new home. There may be local registrations, tax payments and subscription charges to complete, something your legal representative can help you with. If you have questions about moving and furnishing, we are happy to help.
Follow-up
We are keen to know that everything has gone smoothly for you in purchasing your dream home and if we can assist with anything. Plus, as we are keen to maintain a high level of customer satisfaction, we would like to hear your feedback. Alongside side giving us your opinion directly, we also use an independent research company where you can submit your comments anonymously.
We are always here for you
As you settle into your home in the sun, we hope we have fulfilled all your expectations. We continue to be at your service if you have any questions about your home, the housing market, loans, tax rules or any other issues, please feel free to contact us. We are here for you!
Services & information
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FAQ
How do I financing my purchase in Spain?
You can’t take a loan in your country with the Spanish property as security; however, you can mortgage your property at home to purchase the property in Spain. Another solution is to take a mortgage in a Spanish bank with the properties as a security for the mortgages.
What is different to buy a property in Spain compared to other European countries?
An important thing to keep in mind is that all properties in Spain has its own title deed, including parking space and storage space. There are also few restrictions on what you can do with your home when it comes to renovations or rentals.
Reservation fee or deposit
When buying a property in Spain, following payments terms will usually be applied.
First a reservation fee is paid and a reservation agreement is established. In relation with the signing of a purchase contract, you also pay a down payment (deposit), usually 10% of the purchase price.
When purchasing a new build property, a reservation agreement is made directly with the developer and you normally pay a reservation fee of 3,000 - 6,000 €.