Sale and purchase agreement

Here are the steps to follow after making a decision about the purchase of real estate. We have 15-years' experience in processing various kinds of real estate transactions and are glad to offer you our service.

1. To check the property and the rights of the seller.

It is very important to check if the property has any encumbrances (arrears, etc) and if the seller has the right to sell the property and does not have a property dispute with other people.

2. To sign the sale and purchase agreement.

To reserve a real estate object you have to leave a deposit (its amount depends on the price of the object). The deposit is left under the sale and purchase agreement, where all the conditions and terms of the purchase are written.

3.  To open a bank account.

To buy a real estate object in Spain you need to open a bank account here. It is also necessary when you pay taxes. Moreover you can pay energy and water bills, condominium fee, etc. by direct debit.

To open a bank account one has to provide financial documents translated by a sworn translator (traductor jurado) into Spanish.

4. To apply for and get NIE.

NIE is a tax identification number of people who are not citizens of Spain.

5. To apply for and to get a mortgage loan.

The size of the loan is around 50%-60% of the estimated value of the real estate object. The approximate interest rate in Spain currently is  5 — 5,5%. As with other types of loans, mortgages are scheduled to amortize over a set period of time, maximum 30 years.

6. To sign the purchase deed at the notary.

7. To pay taxes and to register the property rights.

When buying a new house one has to pay 2 taxes: a value-added tax (10%) and a stamp duty (1,5%).

When buying a secondary house one has to pay the tax on the transmission of heritable property (10%).

The rights of the new owner are registered in the Property Registry (Registro de la propiedad).

8. To renew  water supply and electricity contracts in the name of a new owner.