The procedure for buying property in Spain and the cost of registration

For a clear representation and further successful transaction for the acquisition of real estate in Spain, it is advisable to divide the entire process into the next 7 steps. Remember that at each stage you should be accompanied by a representative of the company, explaining, clarifying and helping. We provide a description of the acquisition process with a mortgage loan.

1. Object selection
2. Signing a preliminary contract with the seller and paying a deposit so that the object can be withdrawn from sale. The day of signing and reservation is agreed in advance. The deposit usually ranges from a few thousand euros to 10% of the value of the object.
3. Opening a bank account. Occupies about 1 hour and requires about 100 €.
4. Filing documents for receipt, the Identification Number of the Foreigner (NIE). The presence of those persons whose names appear in the contract is required. Obtaining a NIE usually takes up to 1 week and costs up to 500€. Receive can also be another person who was present at the time of filing the documents, and whose data have been registered to receive the document. To apply for an NIE is necessary: Passport, Reservation Contract, Bank Account. 
5. Request and obtain a loan from a bank. Total takes about 1 month and consists of 4 stages: Bank verification of the necessary documents for the object, property valuation, which takes about 2 weeks, the submission of documents borrower: passport and certificate of work with confirmation of the position, the amount of salary with the signature of the General Director and Chief Accountant, 2 (note that the desired documented income is three times higher than the expected payments on the loan), translation and certification of the certificate in the Spanish consulate.
6. Carrying out the transaction at the notary (about 2.5%) usually takes 1 day.
7. Registration of the transaction in the Cadastre (Registro de la Propiedad) up to 3 months.

After registering the transaction in the Cadastre (Registro de la Propiedad), which is handled by a notary public, the buyer is considered the legal owner of the acquired property. According to the law, only then the buyer has the right to receive the keys to his new ownership, but in practice the keys are transferred to the notary office. As for the possibility of obtaining an annual multi-visa on the basis of ownership of real estate in Spain, it becomes available after receiving an extract from the Cadastre (Registro de la Propiedad) and providing it, along with other documents to the consular section of the Spanish Embassy.

Documents required for the Bank when requesting a mortgage loan:

• Foreign passport with a valid visa;
• Certificate from the place of work with confirmation of the position, salary with the signature of the General Director and Chief Accountant;
• Exhibit 2;
• NIE.

The total cost of executing a transaction involving a mortgage loan is approximately 3-4% of the value of the property. The amount of tax on the purchase of real estate in Spain varies for different types of real estate, for example, for residential property, it is 7% of the official sale price, and for land and commercial property – 16%. However, if a land plot is purchased in order to build a residential house for yourself, the tax is the same 7%. Please note that some terms and figures may vary slightly depending on the province and municipality.

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