How to buy a property in Spain on the secondary market: a step-by-step guide

Regardless of what you may read on specialist websites, buying a property in Spain always boils down to one thing: making an informed decision.

The decision as to why, where and at what price you wish to buy a property.

Who are today’s property buyers in Spain?

Currently, the market is dominated by buyers who fall into one of these groups:

• people buying exclusively for their own use, with no plans to move permanently
• people buying a property solely as an investment
• people buying under a mixed model: partly for themselves and partly to let
• clients who wish to move

Each of these groups makes their purchasing decisions differently, so the first and most important step is to determine the purpose of the purchase.

Choosing the region and budget

Only after determining the purpose should you choose the region in which you wish to buy a property. Your budget is inextricably linked to the region.

In practice, it is very often the price that determines the location: the smaller the budget, the more limited the choice of attractive areas.

Let’s assume that:

• you have already chosen the region,
• you have found a specific property.

What next?

Determining the maximum budget

You must clearly answer the question of how much you are willing to spend on the property purchase.

If you do not have the full amount, you can apply for a mortgage from a Spanish bank.

It is worth remembering that buying a home is not limited to the price of the property itself.

Additional costs of buying a home in Spain

In addition to the purchase price, you must factor in, amongst other things:

• ITP tax
• registration in the Land Registry
• translation costs
• solicitor’s fees
• notary
• tax costs
• potential mortgage costs

It is estimated that the total costs of buying a property on the secondary market amount to approximately 11.5–12.0% of the property’s value.
If purchasing on credit, costs may rise to 12.0–13.0%.

Pre-purchase formalities

To buy a property in Spain, you must:

• obtain an NIE number (the equivalent of a tax identification number for foreigners),
• open a bank account with a Spanish bank,
• choose a property.

Reservation contract

Once you have chosen the property, the next step is to sign the reservation contract.

This usually involves a payment of between €3,000 and €6,000.

• if the intermediary is an estate agent, the payment is paid into the agent’s account,
• if the seller is the owner directly, the payment is paid into their account.

Deposit agreement

In some cases, the deposit agreement is signed directly.

• The standard deposit is 10% of the property’s value,
• and this amount is usually paid directly into the owner’s account.

If a solicitor is involved in the transaction, they carry out a full verification of:

• the property documentation,
• the legal status,
• the seller’s accounts,
• the accuracy of the contract terms;
  and oversees the smooth running of the entire transaction.

Duration of the purchase process

In most transactions on the secondary market, the entire process takes between 30 and 90 days.

Formalisation before a notary

The final stage of buying a property in Spain (for example, on the Costa Blanca) is the signing of the public deed of transfer of ownership in the presence of a notary.

Payment is normally made:

• by bank cheque,
• by immediate bank transfer from a Spanish account (note the high costs),
• less frequently, by bank transfer from a foreign account prior to the transaction (the least secure option).

Registration of the property

Registration of the property in the relevant registry is the responsibility of:

• the solicitor handling the transaction;
  or
• the notary who draws up the deed.

Notarial deeds are read in Spanish, so the buyer must ensure they have an interpreter to translate the document into a language they understand well.

Not sure whether to buy for your own use, to rent out, or a mixed-use property?
👉 Message us on WhatsApp and tell us about your situation in person.