Buying a home in Spain often involves a major financial decision and the natural stress of dealing with paperwork in a foreign country. The growing interest in buying abroad makes buying a home on the Iberian Peninsula a way to diversify investments, an option for a second home in the sun or an idea for a quiet retirement by the sea. Poles – as citizens of the European Union – can purchase property on the same terms as Spaniards. The buying process can be made much easier with the support of Polish Home in Spain specialists present on the ground, who watch over the security of each transaction.
Table of Contents:
- Buying property in Spain – legal and formal basics you should know
- How to buy a property in Spain? Step 1: budget, financing and per-transaction costs
- How to buy a house in Spain? Step 2: Choose a location and search for a property
- Buying property in Spain. Step 3: Reservation agreement, preliminary agreement and due diligence.
- Buying an apartment in Spain. Step 4: Deed, taxes and post-purchase formalities.
- Buying an apartment in Spain with Home in Spain
Buying property in Spain – legal and formal basics you should know
Citizens of EU countries can freely purchase Spanish real estate, without the need for special permits or investment programs. Such freedom significantly facilitates the purchase of property in Spain, but from the start it is worth knowing the formal obligations that determine the speed and security of the entire process. A key role is played by the NIE number – an identifier necessary for signing contracts, tax settlements, setting up utilities, as well as preparing financial documentation. Without it, it is not possible to open an account with a Spanish bank, used to pay the purchase price, collect taxes and subsequent property maintenance fees.
The purchase of an apartment in Spain follows a system similar to that in Poland, but Spanish procedures require precision, knowledge of local regulations and control of source documents. That is why it is recommended to have the supervision of an independent lawyer, who verifies the legal status of the property, checks the data in the registers and protects the buyer from the risk of hidden encumbrances. This makes the whole process predictable, and the investor avoids delays, costly mistakes and problems that could arise once the transaction is finalized.
How to buy a property in Spain? Step 1: budget, financing and per-transaction costs
Determining the budget is the first and key stage of investment planning. The decision whether to base financing on savings, the sale of another property, a mortgage or a combination of several sources affects the entire schedule of activities. When planning expenses, it is worth considering that buying a property in Spain always generates additional costs – an average of 12-14% must be added to the transaction price, covering taxes, notary fees, registry, lawyer’s fees and loan expenses.
Buying a house in Spain can involve a larger cost scale than a smaller unit, so precise calculations can help avoid an excessive financial burden. Buying an apartment in Spain requires a similar approach – especially in the context of fluctuating exchange rates, which can raise the final price by several percent depending on when the funds are converted.
A creditworthiness analysis should be done even before you start looking for a property. The bank’s preliminary decision allows you to determine a realistic price range and speeds up subsequent negotiations. Spanish financial institutions require complete documentation and a detailed risk assessment, so preparing documents in advance significantly streamlines the entire process.
What to include in the budget?
- Taxes associated with the purchase: the ITP tax for secondary market transactions or the IVA tax when buying from a developer; in addition, the AJD, which covers notarial acts subject to registration.
- Notary costs: the amount depends on the value of the property and the extent of the documentation prepared by the notary.
- Registration fees: apply to registration in the Real Estate Register and are necessary for full protection of property rights.
- Legal costs: include verification of legal status, analysis of documents, representation at the notary and supervision of tax settlements.
- Loan costs: property appraisal, bank commissions, translation of documents, interest and any insurance required by the bank.
- Additional reserve: funds allocated for furnishing, finishing, purchase of household appliances, minor repair or adaptation works.
A well-thought-out budget minimizes the risk of unforeseen expenses and allows you to conduct the purchasing process in an orderly manner, without having to make nervous financial adjustments at subsequent stages.
How to buy a house in Spain? Step 2: Choose a location and search for a property
The decision on the direction of the investment depends on the purpose of the purchase – some choose an apartment for their own vacation, others plan a home for retirement or are looking for a stable investment for short-term rentals. In each case, the region, its climate, infrastructure, access to airports, proximity to services and quality of surroundings are crucial. Buying a property in Spain takes on a completely different character when the location provides convenience in daily life and an adequate standard of living. The purchase of an apartment in Spain often centers around places with good transportation and quick access to beaches.
The Costa Blanca remains one of the most popular choices among Poles. Alicante, Benidorm, Torrevieja and nearby towns offer a mild climate, a wide base of services and a diverse range of properties at attractive prices. The large number of direct flights makes the region convenient for both holiday stays and frequent arrivals throughout the year.
It is possible to conduct a search on your own, but this requires great caution. Offers published on the Internet are sometimes outdated or incomplete, and “price bargains” often do not stand up to confrontation with the actual state of the property. Cooperation with a professional agency, such as Home in Spain, eliminates many risks – it includes the selection of verified offers, their verification, analysis of documents, negotiations and on-site support. The buyer does not pay a commission, and the process is faster and safer. As a result, decisions are made on the basis of reliable data, and the entire stage of the search proceeds in an orderly and efficient manner.
Buying property in Spain. Step 3: Reservation agreement, preliminary agreement and due diligence.
The buying process usually begins with the signing of a reservation contract (contrato de reserva), which temporarily takes the offer off the market and secures the agreed price. It is accompanied by a reservation fee, which gives the buyer time to prepare the next stages of the transaction. In a procedure involving the purchase of a house in Spain, the next step is a preliminary contract (contrato de arras / contrato privado de compraventa). Such a document specifies the terms of the purchase and provides for a deposit of approx. 10%. The buyer’s failure to fulfill the contract results in the loss of this amount, while the seller’s withdrawal obliges him to return the double down payment.
When it comes to buying an apartment in Spain, due diligence is equally important in the type of process. The legal scope includes an analysis of the property register, mortgages, encumbrances, tax arrears, community fees and compliance with the local development plan. The technical part, performed by an architect or technician, makes it possible to assess the condition of the structure, installations and any hidden defects. Comprehensive verification reduces risks and increases the security of the entire transaction.
When buying a development property, the procedure is different from that of the secondary market. After booking, a preliminary agreement is signed with a payment schedule, under which the buyer usually pays up to 40% of the development value in several installments during construction. The remainder is settled at the deed, when the final transfer of ownership takes place. Such a model ensures predictability of costs and allows secure financing of the purchase at each stage of the project.
Buying an apartment in Spain. Step 4: Deed, taxes and post-purchase formalities.
The finalization of the process involving the purchase of a property in Spain takes place during the signing of the notarial deed (escritura pública), which confirms the transfer of ownership and closes the transaction part. The following are required at the deed: an NIE number, a valid identity document, funds prepared in the form of a banker’s check (there may also be a bank transfer) or according to credit arrangements, and a set of documentation agreed upon in advance with the notary. In a procedure where it is crucial to buy a property in Spain, payment of the price and verification of all attachments take place on the spot, in the presence of both parties.
After signing the deed, it is necessary to settle the taxes specific to the type of transaction: ITP when buying from the secondary market or IVA together with AJD when buying from a developer. The plusvalía municipal tax remains the responsibility of the seller, but it is worth taking into account when analyzing the documents. The next step is to register the acquisition with the Registro de la Propiedad, which ensures full protection of ownership. After registration, the new owner should remember the ongoing obligations: the IBI tax, community fees, rewriting of utility meters and possible income tax settlement in case of rental.
If you are interested in real estate on the Costa Blanca, at Home in Spain you will find full support at every stage of site selection and offer analysis. Homes and apartments on the Costa Blanca receive a personalized selection according to your expectations and budget. You can view villas on the Costa Blanca with a professional advisor who will take care of a full verification of the legal and technical condition. Properties in Alicante are presented taking into account infrastructure, communication and investment potential. Home in is an on-site team that is familiar with the local market, procedures and differences between municipalities, thus avoiding mistakes typical of foreign buyers. Each client is supported in the organization of paperwork, negotiations and safe closing of the transaction.
Buying an apartment in Spain with Home in Spain
We discussed how to buy a house in Spain and showed that the purchase can go smoothly if every step is properly planned. Buying a home in Spain gives you more predictability when the support of specialists reduces the risk of mistakes, facilitates negotiations and allows you to control costs. Home in Spain’s local presence on the Costa Blanca provides Polish clients with convenience and security – from the selection of the property to the reception of the keys. We encourage you to contact us to make the purchase of a property in Spain an informed financial and life investment, whether it is to be a second home in the sun, a place to work remotely or a space for a family.
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