Step by Step Property Purchasing in Spain
Spain, as a member of the European Union, has a robust title deed conveyance system that is applicable to everyone, whether they are local or foreign buyers. Purchasing real estate is a task that demands knowledge and expertise. Proceeding with professional assistance is essential for ensuring easy transactions of keys and property title deeds. The registry of the property takes 1 to 3 months time after you choose your home depending on the property.
TEKCE’s skilled sales agents will assist you in locating the ideal property that meets your needs. The company's experienced property lawyers will manage the due diligence and procedures with you or on your behalf, ensuring legal responsibilities are in order.
There are 7 easy steps to buying real estate in Spain, from finding the right property to getting your title deed.
Here is a detailed, step-by-step guide to the property acquisition process in Spain:
- Preparing a Wish List to Find the Right Property
- Property Viewing Tour
- Signing the Contract
- Getting the NIE number
- Opening a Bank Account
- Registering the Title Deed
Detailed Real Estate Buying Process in Spain
1. Preparing a Wish List to Find the Right Property
Finding the right property that matches your expectations and necessities is essential. To do so, the first step is to prepare a wish list. It will be easier to find the best real estate while working with an expert real estate company.
Following your preferences and your budget, real estate agents pick a suitable location and lead you to the best property options. The agents will have no trouble finding the best options to meet your needs as they constantly follow market trends and advantages. TEKCE’s website features a wide range of properties, and the prices are updated daily, showcasing a broad portfolio.
2. Property Viewing Tour
You visit the properties after your agent has presented you with all the options. While at the viewing tour, asking your agent, the seller, or the developer any questions you have is important to prevent any potential issues from later on.
Thanks to TEKCE’s TeleProperty service, you can eliminate traveling expenses to see the property. TeleProperty gives you a chance to attend the viewing tour via video calls. We use your preferred online channels like WhatsApp, FaceTime, Skype, etc. More than 50% of our transactions are finalized through TeleProperty viewing tours.
Once you have seen the house and decided you like it, the next stage is reserving the property and taking it off the market. Mainly prices are not negotiable at brand new developments. It can be possible for second-hand properties. If negotiation is possible, your agent will help you to get the best possible price.
4. Signing the Contract
If the seller and you agree on the terms of the sale, the TEKCE company lawyer will participate in the sales process. You make a reservation deposit of 5 to 15 thousand Euros and sign a reservation contract. Before purchasing the property, this contract will give you some time to finish all legal procedures.
After the due diligence, your lawyer approves and you sign a private purchase agreement (Arras Contrat) after completing the KYC (Know Your Client) process. You pay 20%-40% of the total price when you sign the contract under the lawyer's supervision. As this process may take some time, it is advised to give power of attorney to the lawyer to finalize the sales process on your behalf.
5. Getting the NIE number
For a brief overview of the legal processes that each buyer must go through, the first step is to obtain an NIE number in Spain. NIE Spain, or the "Number of Indentity of Extranjero," is short for a foreigner identification number. Any buyer from a foreign country has to obtain an NIE number. Your lawyer in charge will assist you in getting one.
6. Opening a Bank Account
Opening a bank account is a further essential step. You may manage all of your payments, including your notary payments, and finish your financial transactions. TEKCE collaborates with multiple banks, and our team ensures a seamless process for opening a bank account.
7. Registering the Title Deed
The final step before the property is all yours is the official signing of the title deed, which will take place in a notary. The notary will ensure that you completely comprehend all the contract terms. The notary will also make sure that you are aware of what you are genuinely signing and agreeing to with the seller. This stage allows you to get your keys to move into your new home. After the notary signature, the Title Deed will be registered at the Land Registry within 3 to 4 weeks, which is a self-running process. No further action is required, it will be registered on your behalf officially.
What are the Required Documents to Buy a Property in Spain?
Buyers should prepare certain documents to finalize the purchase of the property in Spain. These documents are needed to proceed with the transfer of ownership between buyer and seller. Here are documents to buy a real estate in Spain:
- Valid passport of the buyer
- NIE number
- Power of attorney if the procedures will be followed by a representative
- Sales contract
- A statement regarding there are no encumbrances on the property
Fundamentals of Buying a Real Estate in Spain
- Financing the purchase of property: If your dream property’s price exceeds your planned budget, banks in Spain are willing to finance both local and international buyers. Spain has the average interest rates of European Union banks, which are appropriate for long-term mortgages. They provide various mortgage rates. Mortgages in Spain are quite advantageous with low interest rates and flexible payment periods. Interest rates may vary for foreign purchasers as the risk is somewhat higher than for locals.
- Purchasing expenses: There might be additional expenses for the purchase along with the property’s sales amount. There will be legal fees, one-time or annual taxes, valuation fees, and more. Not to be surprised with unexpected costs, it is essential to calculate all expenses beforehand.
- Buying with Cryptocurrency: Since there isn’t a certain restriction about property purchases with cryptocurrency, buyers can use their crypto assets for it. TEKCE has brought hundreds of crypto-holders with their dream homes on purchases with Bitcoin.
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