Purchasing a Property in Spain — Ins & Outs of the Process

The Spanish real estate market operates completely different from any other European market. Unlike countries with a national overall platform, Spain has no centralized MLS system. Properties are listed across hundreds of local agencies, making it difficult for foreign buyers to get a complete overview.

The Spanish Market System

On the international real estate purchasing market, there is a huge demand for professional support. The Spanish system operates completely different to what people are used to at home. There is no national overall platform or portal, and real estate could be offered by anyone, at even different prices. Therefore, it is highly recommendable to use your own specialist, when you decide to invest in Spain.

The Purchase Process: Step by Step

We accompany the client from scratch until the complete purchase is finalized. This consists the property search, pre-selection of the visits, negotiations with the seller, preparation of all the documents (multi-lingual) and the assistance at the Deed. It's an A to Z service package and we guarantee a safe and sure operation. The process typically involves: property search, pre-selection of visits, negotiations, due diligence, preliminary contract (arras), and finally the deed at the notary.

Costs & Taxes When Buying

When purchasing property in Spain, buyers should budget approximately 10-13% on top of the purchase price for taxes and fees. This includes the property transfer tax (ITP) of 6-10% depending on the region, notary fees, land registry fees, and legal costs. For new-build properties, VAT (IVA) of 10% applies instead of ITP. Having a clear picture of all costs upfront prevents surprises at closing.

The NIE: Your First Step

Every foreign buyer needs a NIE (Número de Identificación de Extranjero) — a tax identification number required for any financial transaction in Spain. This includes buying property, opening a bank account, signing contracts, and connecting utilities. The application can be made at the Spanish consulate in your home country or at the local police station in Spain. We handle this process for our clients as part of our service package.

Do I Need Purchase Assistance?

We all know the value of the internet. It's a fantastic 24x7 shop that offers everything. A great showcase! However in this ocean of property offers, it is difficult to select the right property. The information that is offered is many times incomplete and what about the legal situation? Most professionals on the market are paid by the seller. Bringing your own specialist with you, who only handles on your behalf, is not a bad idea. Together you could make a purchase plan. With his or her experience you know the market better before you decide. That will save you time and money.