GUIDE TO BUYING A PROPERTY IN SPAIN
In the following 6 headers, I will try to help you through the buying process.
1: Set your budget and understand the cost of buying
Before you begin your property search, it’s important to set your budget.
Equally important is to factor in the purchase costs associated with buying a Spanish property, including purchase fees and taxes.
Costs can vary depending on whether you’re buying a second-hand property or a new build.
There is a 7% VAT payable to the government on the transaction and this is not included in the ‘asking’ or selling price. In addition, approx. 3% is added for the costs of stamp, registration, notary and lawyer, respectively. In other words, approx. 10% on top of the selling price for second-hand homes.
In the case of new builds, VAT is 10%, totalling approx. 13%.
The timeframe for buying a property typically spans 6 to 10 weeks from the time an offer is made to the day you receive the keys to your new home
However, the duration of a new build purchase depends on the property’s construction process.
2: Find the right agent
As your agent, I’ll help you find your dream home and guide you through the entire buying process.
I can help you find a lawyer and bank.
At the same time, I ensure that the buying process runs smoothly.
I work with several lawyers, all of whom speak mainly Danish or at least English.
Together, we make sure that all powers of attorney and documents are in place in connection with the transaction.
The lawyer also assists with setting up a Spanish bank account and registering for electricity and water, among other things.
If a mortgage loan is to be established in connection with the sale, it is important that you have investigated possible credits before signing.
As your realtor, I’m with you every step of the way, from dream to reality.1: Set your budget and understand the cost of buying
Before you begin your home search, it’s important to set your budget.
Equally important is to factor in the purchase costs associated with buying a Spanish property, including purchase fees and taxes.
Costs can vary depending on whether you’re buying a second-hand property or a new build.
There is a 7% VAT payable to the government on the transaction and this is not included in the ‘asking’ or selling price. In addition, approx. 3% is added for the costs of stamp, registration, notary and lawyer, respectively. In other words, approx. 10% on top of the selling price for second-hand homes.
In the case of new builds, VAT is 10%, totalling approx. 13%.
The time perspective for buying a property extends
3: Find your dream home
Firstly, think about what you want for the area where you want your property to be located.
Should it be close to the coast, mountains or something else?
On the website you can read about the different areas, and since I know these, I can help you with your search.
Once you have the right gut feeling, we’ll start the actual property search.
Together we can find the home of your dreams.
We make a list of your wishes and requirements for the property. Then I’ll make a list of possible properties that meet your requirements.
Together we go through the list and find the potential homes you would like to see.
Then it’s time for a visit to the Sunshine Coast to view the selected homes.
When we find your dream home, we will make an offer.
Here I will guide you with my knowledge of prices in the areas and possible dialogue with the seller.
When the offer is accepted, a reservation agreement must be signed and a deposit paid. The property is then taken off the market.
4: Execution of the Private Purchase Contract (PPC)
Once the property you have chosen has been reserved, your lawyer will start drafting a Private Purchase Contract (PPC) between you and the seller.
It is important that this contract is signed within 1-2 weeks of the reservation of the property. During this period, the lawyer will make all necessary enquiries about the property, the related paperwork and secure the legalities.
They will also work with you to resolve any specific conditions or clauses that need to be included in the contract.
When signing the purchase contract for a second-hand property, it is common for the buyer to put down a deposit of 10 per cent of the purchase price (including the reservation deposit paid).
In the case of new construction, the deposit and purchase agreement are typically different and can potentially be between 30 and 50 per cent of the sales price before construction is complete.
It’s important to remember that I provide comprehensive assistance throughout the buying process and beyond.
Throughout the process, I am of course available to answer any queries, provide regular updates and ensure a smooth transaction.
5: The handover day
Your lawyer will prepare everything and contact you to arrange a day that suits you both.
The lawyer will finalise the last stage of the purchase process with the local notary, who oversees the signing of the deed (Escritura de Compraventa) by the seller and buyer.
Only deeds that are authorised and signed by a registered notary are legal.
When the deed is signed, the buyer must pay the remainder of the purchase price and the costs mentioned in point 1.
6: Procedures after completion
Once the new deed is signed by all parties involved and subsequently “notarised”, you officially become the legal owner of your property.
Your lawyer will register the deed at the local land registry office on the same day.
In addition, your lawyer will take the necessary steps to register you as the rightful owner of the property with the local tax office, utility companies and your homeowners’ association.
It’s important to emphasise that my service doesn’t stop here.
I will provide ongoing support for any issues that may arise after you’ve moved into your new home.