How to buy property in Spain: Everything you need to know

Deed of sale for real estate in Spain

The bill of sale is the main document evidencing the purchase of the real estate in Spain. As a result of signing this document, the buyer has the right to dispose of this property at his discretion. N.I.E. (identification number of a foreigner) is necessary for signing the transaction and is issued in advance by the police.

A notary is an integral part of the transaction, Escritura Publica (bill of sale) is signed in his presence, mutual settlements are carried out, keys are handed over, etc., if the purchase of home ownership is made with a Mortgage, then a representative from the bank is always present. After the bill of sale (Escritura) is transferred to the Property Register of Spain for registration, this process will take about 3-4 months.

When all the data is entered, upon request, the owner is issued an extract from the Register (Nota Simple), based on which multi visas to Spain are issued.

Deposit Agreement

How to buy a house in Spain and draw up a Deposit Agreement? Buying a cottage, apartment, or other real estate in Spain. The document is drawn up when the object has already been selected and indicates the buyer’s intention.

The conclusion of such an agreement is beneficial to everyone, and it considers insurance guarantees for each party. Be sure to record the data of the seller and the buyer, information about the object, its description, and its characteristics. Specifies the cost and terms of the contract. In particular, there should be a record of the amount of the deposit paid, the form, and the payment schedule.

How to buy property in Spain on credit

Banks in Spain are loyal to citizens of other countries. That allows you to get a mortgage financed up to 60% of the total cost of housing. The loan amount can be 100% of the cost when purchasing bank real estate.

The loan term is 25-30 years, and the average interest rate is 3.5%. When considering the acquisition of real estate in a mortgage, individuals and legal entities must consider the costs of its registration and the payment of tax on the transfer of property rights, which is about 10-15% of the cost.

The Mortgage Law, which came into force in November 2018, states that the IADJ (Stamp Duty) is obliged to pay the bank when signing the mortgage. The buyer saves a considerable amount (on average, 1% of the transaction).

In addition, if you want to buy property in Spain with a mortgage, we will find the best banking programs and market offers for you.

Mortgages in Spain for non-residents of the country

Mortgage for non-residents is not an easy task, but quite solvable. Many buyers are attracted by the opportunity to buy property in Spain on credit. Mortgages have the right to request both citizens of the country and foreigners. The loan amount is usually up to 60%, and in exceptional cases – up to 80%.

An individual approach and working with the largest banks, Sabadell, BBVA, and Santander, makes it possible to offer the most profitable mortgage program option for each of our clients.

For the bank to consider and approve the request for financing, the buyer must confirm his solvency by submitting documents confirming this to the mortgage department. It is important to remember that all persons appearing in the bill of sale also provide references and certificates. After that, the papers provided by you will be considered, and an appraisal check of the acquired object will be carried out. It will also act as a guarantee and collateral during the transaction.

Mortgage features in Spain

The peculiarities of mortgages in Spain are some advantages and additional opportunities provided to buyers of Spanish property:

• low-interest rate;
• favorable credit terms;
• low taxes and commissions for international transfers of funds;
• the right to receive a multi visa for the whole family;
• the right to obtain a residence permit for owners of objects from 500,000 euros.

Conclusion

When buying property in Spain, it is crucial to navigate the legal complexities correctly.

The bill of sale, notary involvement, and registration with the Property Register are key steps. Financing options, including mortgages, are accessible to both residents and non-residents, offering favorable terms and potential savings. Spanish mortgages present advantages such as low-interest rates and the opportunity to obtain a multi visa for the family.