What’s the Buying Process Like?
Step 1: Seal the Deal!
Once you find a property you like:
- We’ll prepare a document to present your offer to the seller. An offer deposit of 1000€ to the agency is required. The aim is to show the seller you are genuinely interested in the purchase and serious about your offer. If the seller doesn’t accept your offer or an agreement isn’t reached after a negotiation, don’t worry—you’ll get the deposit back!
- Once an agreement is reached or once the seller accepts your offer, we’ll prepare a Deposit/Purchase Contract for you where the terms and conditions of the agreement will be set out. In Spain this is used to reserve the property for a specified amount of time until the signing of the purchase deed at the Notary. After the contract is signed by both parties, you must transfer the deposit to the owner, which is typically 10% of the value of the property, minus the 1000€ offer deposit. Congratulations, after that your property is now reserved!
- Now the agency will prepare all the paperwork required by the Notary in order to sign the purchase sale deed – and if you need a mortgage, we can start helping you arrange it.
Step 2: Open a Bank Account
To be able to buy a property in Spain, you need to open a Spanish bank account. This will be used to pay several bills in the future such as: yearly land tax (IBI/SUMA), electricity & water bills, community fees (if it applies to you), etc. Some banks will allow you to open the account temporarily with your passport, but most will require you to have an NIE identification number beforehand and for you to go to the bank in person.
Step 3:Get an NIE Identification Number
Unless you have a DNI, you need an NIE number in order to be able to buy a property, a car, put the bills in your name, etc. It’s your identification number and tax number in Spain.
We can arrange this for you as an extra service.
Step 4:Notary signing – Time to officially become the new owner!
We’ll arrange an appointment at a local Notary for you and send them all the necessary documents for the purchase. This is where you make the final payment of the remaining 90% to the seller (by either cheque or OMF transfer), the keys are handed over, and the new deed is signed.
- Spanish law requires the Notary to witness the payment of the agreed amount and the signing of all relevant documents. If you don’t speak Spanish, the Notary will require you to bring a translator. We offer this additional service, or you can bring one.
- After the signing of the Purchase deed, you will receive a “Copia Simple”, which is an official copy of the deed from the Notary. Around 7 days later, you can pick up the original deed from the Notary once it’s ready.
- If you are abroad and aren’t able to travel to Spain in time for the signing of the property purchase deed, we can arrange a Power of Attorney (POA) to sign the property in your name, on your behalf. The easiest way to do this is for the POA to be signed at the Notary before you leave Spain, after viewing properties. It’s possible to do this from your country, although it will be more expensive and not as time-efficient, because the Notary will require an official translation of the POA and an apostille of the POA and of your passport/s.
What are the buying costs in Costa Blanca?
Buying costs vary depending on several factors, including the purchase price, whether it’s a new build or resale property, and whether you’re a cash buyer or buying with a mortgage.
Resale Property:
- 10% Transfer Tax (ITP – impuesto de transmisiones patrimoniales)
on the purchase price or reference value (if higher). In special cases this percentage is lower, especially for first-time buyers under 35 years old. We will assess your specific situation and inform you. - Under 150,000€: approx. 1,500€ including Notary & Registry fees.
- Over 150,000€: approx. 2,000€ including Notary & Registry fees.
- If you need a mortgage, some banks will charge you for the “tasación” (property valuation report made by an architect) and the management company fee to handle the paperwork for you.
- Optional – We offer an aftersale service which includes: filing in all the tax models needed in your case, presenting the tax models/payments at the tax office, registering the property in your name at the registry, changing the electricity/water bill contracts and the land tax/waste bills into your name (and setting up all the direct debits for these). This is very helpful for buyers who don’t know the system or Spanish.
New Build Properties:
- 10% VAT
on the purchase price. - 1.5% stamp duty
on the purchase price. - Under 150,000€: approx. 1,500€ including Notary & Registry fees.
- Over 150,000€: approx. 2,000€ including Notary & Registry fees.
- Optional aftersale service: Just as with resale properties, we also offer an aftersale service if you purchase a new build property.
