Prior to viewing If you are serious about buying Spanish property during your visit, you should have at your disposal sufficient funds to cover the reservation sum. The minimum amount required is normally € 3.000,- to € 6.000,- this is a good-will gesture, and enables the property to be taken off the market. This reservation amount may be greater for high priced properties. The reservation sum may be paid with a credit card or cash. A cheque, if drawn on a foreign bank may take up to ten days to clear by a Spanish bank.

If you do not have the means to lodge a reservation sum immediately, you may risk losing the property to another party who does have the reservation sum to lay down. There are virtually no exchange controls in Spain, which means that you can transfer funds into Spain, in this instance for the purchase of your new home from any bank in the world. Spanish banks are willing to lend to non-residents
Requirements (see our banking details).

Stage One:

The initial Offer
When a suitable property has been selected, the purchase terms and price will need to be negotiated with the seller. You may wish to make your offer subject to mortgage or Lawyer approval, or vary final completion dates, or the method of payment.
We recommend that at this stage, a lawyer is engaged.
Selecting a Spanish Lawyer.
There are many excellent local Lawyers in Spain who are fluent in English. As in the rest of Europe all are qualified, and regulated through the Spanish legal system. Upon your first meeting they can give you an estimate of your outlay for their services. We can introduce you to some excellent firms, which both our company and our clients have used, or you may wish to engage your own.
A Lawyer will provide the legal guarantees for the purchase of the property ensuring that Spanish legal requirements are met and that the property is bought free of encumbrances, charges, liens or debt and up to date in all its payments of local contributions and community charges etc.
Payment of reservation.
When there is a verbal agreement between the parties, the next step is to formalize the offer of purchase in writing. The reservation amount can now be lodged in a local bank account or with your Lawyer in order to show the seller that there is a real intention to purchase.


Stage Two:

Exchange of private contract.
Upon acceptance of the offer by the owner the next step is to exchange private contracts of sale. This can up to six weeks to complete, following the formal acceptance of the offer. Your Lawyer at this time will have completed his searches and investigations of the property and will have arranged with the owner the procedure for the cancellation of any outstanding debts. The private contract of sale or option will reflect all the agreed terms of the offer and sale and set out the date for final completion at the Notary. It is customary practice at this stage to pay ten percent of the purchase price which normally is non-refundable should the purchaser not complete. In the case of the seller withdrawing , they must pay double the deposit.
This is a binding agreement, between the buyer and seller.

Stage Three:

Final completion at the notary
A sale is formally completed in Spain, when the public title deeds of purchase are signed before a notary, the final payment made, and possession given to the buyer.
Registration
Once signed, the notary will fax a note of the title deed to local land registry. Your Lawyer will also pay on your behalf all the relevant transfer taxes associated with the purchase and will handle the formalities of registration of your title deeds. Final registration of the deed may take up to two months. Similarly, your Lawyer will arrange for the transfer of accounts with the local suppliers of utility services such as water and electricity and organize their payment through a local bank.
Costs involved in purchasing a property
There are in principal three fees and two taxes to pay when purchasing property in Spain. As a rule of thumb, you should budget the combined total of these amounts will be around 10% of the purchase price.
The fees are as follows:
Legal fees: Minimum of € 600,- or 1% of the purchase value whichever is the greater, plus value-added tax (I.V.A) currently charged at 16%.
Notary fees: the scale is fixed by law and may range from € 300,- for lower price properties to € 841,40 for higher priced properties.
Property Registry: as a rule of thumb, 60% of what the notary charges.
The taxes
Transfer tax (ITP) at 6% or, when buying from a promoter, developer or habitual trades, IVA at 7% or 16% plus Stamp Duty at 1%. The IVA rate of 16% is applicable when purchasing parcels of land, commercial premises, or garage spaces.
Plus Valía: normally payable by the vendor but it may be stipulated that the buyer pays. This may range from a hundred Euros to several thousand Euros on larger properties with a lot of land. Who pays this will be discussed in the negotiations and in consultation with your Lawyer.