NEW BUILD HOUSES IN SPAIN

How to Buy a House in Spain as a Foreigner with housedeluxe.es
 
 

Buying a house in Spain as a foreigner may seem like a long and complicated process, but it shouldn't be.
As it is a really important process, knowing the correct steps to follow will be essential to enjoy a successful and satisfying purchase.
Thus, in this article you will find a detailed list with all the steps that any foreigner must follow, some important considerations and all the taxes and costs associated with the purchase process. Read on and discover very valuable legal advice and main mistakes to avoid.
 
 
 
How long does it take to buy a property?
 
Let's start by defining the total duration of the process, since knowing the times in advance will be important to be able to plan correctly.
The home buying process can be divided into three different steps, each with a different duration.
The first thing you should do is find the ideal house. That is, the house that suits your needs and the one that you will finally choose.
Depending on how demanding you are (and here are reasons enough to be), this can last anywhere from 3 months to even a whole year.
Take your time.
Make sure you find the right city or town, and look not only at the house and all its internal features, but also at its surroundings and how close you will be to places like public transportation, shopping malls, or even your favorite entertainment venues.
Once you have found YOUR home, you will begin the actual buying process.
This can last from 2 to 3 months until you finally receive the keys.
However, in the vast majority of cases, this process will take even longer (and therefore the last and third step will be created), if you apply for a mortgage.
If that is the case, you will have to add a few more weeks, since the bank takes its time to verify and prepare all the related details and finish the process.
Our recommendation is that you always plan well in advance and play with certain margins. The process can last up to 3 months, but it is better to give yourself enough time not to experience a stressful situation if any inconvenience appears (something that is very common).
 
 
How to buy a property in Spain?
 
Now that we have a clear idea about the duration and the main parts of the process, let's look at the nuances of each of them.
What follows is the complete list of each of the steps that you will have to follow to finally obtain your new home in Spanish territory.
 

1. Get your NIE

 
Obtaining the NIE is the first step, and in fact one of the most important.
The NIE is the identification number that you are granted as a foreigner, and it is essential to carry out any type of economic activity or financial transaction (such as the purchase of a home), as well as to register as the owner of the house once purchased.
Requesting this number is quite simple, and you can do it from abroad (at the Spanish embassy while still in your country of origin) or directly in Spain.
There are different types of NIE, and depending on your plans you must request one of the following options:
• A NIE as a non-resident if you are going to buy the house but you are not going to live in Spain (ie, you will only travel to the country for that reason) and you are a non-EU citizen.
• A resident NIE if you are going to be in the country more than 183 days a year, regardless of whether you are from the community or not.
• And, if you are from the European Union but you are only going to be in the country for the duration of the sale, you can obtain a temporary NIE.
 

2. Open a bank account

 
Although it is not 100% necessary, having your bank account in Spain will speed up the process and facilitate the transaction in its different steps.
This bank account will be necessary to pay the notary fees and all other associated costs.
In addition, the usual thing is that having the money abroad supposes delays and extra complications.
Once you have the NIE, our recommendation is that you go directly to open an account with the entity of your choice.
 
3. Booking contract
 
Once the price has been agreed with the seller, the next step is to sign what is called a reservation contract.
This document basically specifies that a price has really been lowered, and it is used to confirm that the property will be removed from any online platform on which it is advertised and that the seller and real estate agent will stop offering it to new buyers.

 
4. Deposit contract
 
Now we turn to a really important contract, the deposit contract.
This is the private sales contract in which a real commitment to purchase the home at the agreed price is demonstrated.
For this contract to be valid, you will have to pay a certain amount of money to confirm your purchase intention to the selling party (which of course is given).
 
will deduct from the final payment); and she receives that money confirming that she is going to sell to you.
There are two main variables you have to pay with when it comes to the deposit agreement:
• The amount of money you pay as confirmation, which is usually 6,000 euros (although you can negotiate and reduce/increase that amount).
• The duration of the deposit contract. Here we recommend that you always agree to 90 days, so that you have enough time to make the right decision when taking out a mortgage (since the banks will not take you seriously until they see this contract).
 
 
5. Prepare the necessary documents
 
Before going to the notary, you will have to prepare all the necessary documents and make sure that the property does not have any defects.
In this phase it is very useful and recommended to have a Real Estate Agent (to make sure that you are not buying a property that has hidden defects or similar problems).
What are the documents you will need?
•       Simple note. This document provides all the details about the property, such as who the previous owners are, its classification (whether it is a residential or commercial property), if it has debts or mortgages, etc.
• The public deed.
• The NIE
• Bank Check or Transfer Receipt for the payment of both the reservation and the payment for the purchase of the home.
 
6. Go to the notary to sign the public deed
 
One of the last steps in the process.
On your first visit to the notary, he will draw up the deed of the property and the agreement with the seller, and attest to it.
This part is crucial for you, as the notary will help you fully understand all the conditions of the contract so that you know exactly what he is signing and agreeing with the seller.
Next, you will go to the notary for the official signing of the deed of sale, the last step before the property is totally yours.
Who will attend?
All parties involved in the transaction. We are talking about the buyer, the seller, the representative of the bank that will deliver the check with the purchase money, the real estate agent and the lawyer in case there are any, in addition to the notary.
And finally, you will receive the keys to the house, but that will not be the end yet.
 
7. Register the property
 
Finally, you will have to register your new house in the Property Registry (which requires the payment of certain corresponding taxes, as we will see later).
Basically, with this process you will be identifying yourself as the new owner, which requires the payment of the property transfer tax and the tax on documented legal acts to the regional government.
In addition, the ownership of the different public services will be transferred; such as gas, water and electricity.
 
 
8. What are all the costs and taxes associated with the process of buying and selling the property?
 
Knowing them in detail is crucial, and you should have a clear answer to know the total amount that you will end up paying effectively
In addition to the purchase price, when buying a property in Spain you will also have to pay:
• ITP (property transfer tax) if the property is second-hand. The exact percentage varies depending on the region you are in.
• VAT (Value Added Tax) for new homes. It is about 10% (common in all autonomous communities). But if you are under 32 years old and the property is going to be your habitual residence, the amount is reduced to only 5%.
• The different notary expenses.
• The costs of registering the property (in the national registry), which is equivalent to 1.5%.
Therefore, the usual thing is that you pay an extra 12-13% on the sale price.
 
9. Where to find the ideal apartment or house
 
Where can you find the best real estate deals?
Housedeluxe.es has the best new build homes on the Costablanca in Spain.