Buying A Property


PURCHASE OF REAL PROPERTY IN SPAIN:

NECESSARY DOCUMENTS

****Spanish tax identification number N.I.E. When a client makes a positive decision on the purchase or reservation of a specific property we proceed to submit documents to receive the N.I.E. number. This number is mandatory, it is a personal identifier given to foreigners (including residents) who conduct financial transactions in Spain. The procedure of receiving the N.I.E number takes up to 4 weeks, however, in practice, it is granted sooner, and the cost is about EUR 20. This number is needed to obtain the property ownership, for the payment of taxes, conclusion of contracts for the supply of electricity and water etc. In order to obtain this document you should specify the aim, e.g. purchase of an apartment, start of a business, etc. In order to receive the N.I.E number you need to provide:

  • a valid passport or the identity card (new) + 2 photocopies of the selected dokument
  • two recent ID photos
  • fill out an application (which can be obtained at the office)
  • The next step is to open an account in a Spanish bank
  • passport or ID card
  • copy of the passport or the ID card

STEPS WHEN BUYING PROPERTY IN THE SECONDARY MARKET

  • The signing of the preliminary agreement.
  • The preliminary agreement guarantees reservation of the selected property.
  • All documents are drawn up in Spanish.
  • When signing the preliminary agreement, an advance is paid in the amount from EUR 3000 to 6000.
  • The preliminary agreement includes specific terms and conditions, i.e. agreed date of the notarial deed and the account to which deposit will be paid in the amount of 10% of the property value .
  • (The deposit is paid when the date of appointment with the notary public is distant in time by more than a month from the date of reservation).
  • The signing of the notarial deed.
  • At the time of signing of the notarial deed the remaining part of the property sale value is paid.
  • The notarial deed is signed in Spanish.
  • The client’s attorney and the translator may be present at the time of signing of the notarial deed.
  • At the time of signing of the notarial deed the notary public enters all the names of those present at the agreement.

PURCHASE OF PROPERTY FROM THE REAL ESTATE DEVELOPMENT COMPANY (PRIMARY MARKET)

  • The signing of the preliminary agreement.
  • The agreement is signed between the client and the real estate development company.
  • When signing the preliminary agreement, an advance is paid in the amount from EUR 3000 to 6000.
  • The agreement guarantees reservation of the selected property.
  • The preliminary agreement specifies the date of payment of the remaining installments of the property value.
  • Making an appointment with the notary public to sign the notarial deed depends upon the date of the investment completion and the collection of keys.
  • Money to purchase the property does not need to be transferred from the Polish bank but it may come from other international banks or may be paid by the buyer in cash.
  • In the event of failure to complete the transaction for reasons attributable to the buyer, the advance shall be retained by the seller. If the transaction fails to be completed for reasons attributable to the buyer, he will have to return a double value of the received advance (unless the agreement provides otherwise).

The agreement on the property purchase shall be made in the form of a notarial deed in Spanish, under the sanction of invalidity.

The costs of buying property are 10% (VAT) and the notarial fees of about 3% (notarial deed, notary public fee, land and mortgage register, stamp duty fee).