Purchasing a Property in Spain

Steps to take to buy a property:

1.

Find a suitable property

2.

Go through a Due Diligence

3.

Reservation of the property

4.

"Arras" agreement

5.

Sign deed at Notary Public's

6.

Property Registry

Due Diligence Process

The Due Diligence Process is a very important step that you should take before proceeding to pay to reserve a property. It refers to a thorough analysis of the circumstances of the property, from verifying the seller's ownership to making sure that they have all the necessary documents. 

We strongly recommend that you do not pay or sign anything before having a lawyer do a Due Diligence. This is a typical case of caveat emptor (buyer beware). Only the Realtor and a lawyer hired by you will actually represent your best interest. 

1.

Obtainment of ownership certificate from the property registry

2.

Checking if there are any pre-emption rights & tenants

7.

Check with the urban planning department of the town hall

8.

Check with community of owners (fees etc.)

3.

Making sure that the property is free of debts, charges, liens and embargoes

9.

Review specific aspects due to the property's, the seller's or buyer's nature

4.

Check that  local taxes (IBI) are up to date. The town hall issues a certificate to that end.

5.

Review of the previous deeds and making sure the property is described 

correctly.

6.

Check cadastral record (inventory of property for tax and assessment purposes)

10.

Check that utility bills are up to date and get copies of latest receipts

11.

Ask for builder's guarantee if the building is less than 10 years old

12.

Ask for copies of the required certificates (habitability, energy, etc.) 

FAQs

What are the costs involved in purchasing, owning and selling a property in Spain?

When you buy a property in Spain you have to keep in mind various costs and taxes that go over and above the property price. Depending on whether you purchase a new property from a developer, or a resale property from a private individual, you will either have to pay VAT & Stamp Duty, or a transfer tax. In Summary, allow for between 12% and 15% of the purchase price in taxes and other costs, though it does depend on what and where you are buying.

As a property owner in Spain you have to pay local tax (IBI), possibly community fees and insurance. In some parts of Spain you have to consider wealth tax and if you rent out the property, you will have to declare income tax on the rental income. 

If you sell a property, you have to pay the "plusvalía", a municipal tax on the capital gains.

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Carrer del Rosselló 218 4º 2ª en 08008 Barcelona

+34 622 677 294

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We are here to make sure your property purchase is a success and the process as smooth as possible. Get in touch!

Thank you!