The Buying Process

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There are a number of steps to go through before you pick up the keys and crack open the Cava or a nice rioja on your Spanish terrace. We'll obviously go through these in greater detail once you've decided to buy but, until then, here's a guide to how the sales process unfolds so you will know what to expect.

• Appoint a solicitor to start conducting all the necessary searches and make sure all the legal requirements are met. Spanish property laws safeguard both the buyer and seller but a solicitor is still advisable. Unless you speak fluent Spanish, you'll need to find one who speaks English and can translate and explain the legal documents.
  
  
• Obtain your 'Numero de Identificacion de Extranjeros' or N.I.E - literally this means 'Foreigner's Identification Number'. It's a legal requirement that you have one before you carry out a transaction which has tax implications, such as buying a property. It's easily obtained by visiting the Foreigner's department of most police stations in Spain.
  
  
• Arrange your mortgage, or alternative finance. Note that if you finance your purchase it is common practice in Spain for your lender to request a valuation from a third party. Your lender will generally insist on commissioning the valuation from their panel of valuers.
  
  
• Check and sign the preliminary sale contract. This is usually when you pay a deposit and both sides are committed to the transaction. Your solicitor will talk you through this.
  
  
• Pay a deposit. A deposit of €3000 reserves your home for 30 days, fully refundable should you change your mind. You then pay 25% after 30 days and a further 15% after 9 months with the balance of 60% payable on completion.
  
  
• Calculate all the costs involved including estate agents fees, taxes, valuation, notary, administration and legal fees.
  
  
• Wait for you Solicitor/Bank to complete legal investigations such as checking that the owner has the authority to sell, whether there's any outstanding debt on the property and if it has the full and correct title deeds.
  
  
• Arrange a date for completion and signing in front of the notary. The notary will read the property deed aloud and ensure you understand the commitments you're taking on. Your Solicitor will advise you on this based on legal enquiries and the arrangement of your mortgage or transfer of other funds.
  
  
• Pay for the property and applicable taxes. This is normally the purchase price plus around 10% for all other costs. We can help you budget for these when you arrange your mortgage.
  
  
• Title will be registered at the Land Registry and your solicitor will advise you when you can expect to receive the full title deeds.
  
  

There are a number of additional costs involved, including taxes and stamp duty. These vary according to the type of property and region.

Once you know what you're buying, where, we can help you budget more accurately for these. In our experience, as a rule of thumb you should allow for an extra 10% on top of the purchase price.

Here are a few of the costs you'll need to allow for:

New properties: VAT* (Impuesto sobre el Valor Anadido/IVA) of 7% plus the Stamp duty of 0.5% of the declared price

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