Spain’s property boom! A Guide to Buy A New Property
Spain is a trendy destination for ex-pats looking for an extraordinary climate, high living standards, and mouth-watering delicacies.
Whether thinking about living in one of Spain’s cities or simply retiring to one of the coasts, you must go somewhere to live.
Renting is always an option that is always available, but having your own home to relax in gives you a sense of accomplishment.
However, buying a real estate property in Spain is a challenging task. This is the reason why we are here. This guide will help you through the steps needed to buy a real estate property in Spain.
If you want to avoid going through the hassle and are here only for the solution, visiting Right Casa might solve your problem. Casa is in the actual industry and has some of the best properties.
Let’s move on with the article and look at the steps needed to buy a new property in Spain.
The Process To Buy A New Property In Spain
If you are considering buying a real estate property in Spain, now is the time.
The Spanish real estate market has boomed in the last few years, especially after the pandemic. Due to a decrease in buyers, the prices of some of the best properties have reached ground dirt.
What? You don’t know the steps to take you through the buying process.
Do not worry! We have got you covered.
Below, we have enumerated the steps that will guide you in finding and purchasing your dream home in Spain.
Step1: Get Your NIE
NIE is a unique tax identification number in Spain. It is necessary for the non-citizens of Spain to have their own NIE to buy a property and pay taxes. So, if you are looking for property in Spain, NIE must be your first step.
Step2: Open A Bank Account
Buying a property in Spain means you need to have a bank account in Spain or any European country. You might think that any bank account will do, but when buying property in Spain – no, it will not! The moment you plan on purchasing a property in Spain, apply for a native banking service.
Step3: See Whether Or Not You Need Mortgages
Do you need any mortgages?
Go through your funds and see how stable you are – financially. This will help you understand whether or not you need any mortgages.
Here, you can take advantage of the new bank account you have opened. See how much you can get in mortgages. Who knows, you might get some of the best deals to work with.
Step4: Check The Property With An Expert
The next important step is to check the property with an expert. Whether you are a citizen of Spain or a foreigner, this step is essential.
Important checks of the property:
- The land registry.
- Ensure that planning permission has been obtained.
- Ensure there is no outstanding debt with the property.
- Confirm documentation.
- Check the property and match it with how it has been described in the document.
Step5: Find A Lawyer
You must work with a lawyer. The lawyer will guide you through all the legal policies you need to understand before buying a property in Spain. In addition, they will help you validate the documentation process and ensure everything is OK.
Step6: Sign The Contrato De Reserva
Once you have a lawyer, you can move forward with the “Contracto De Reserva.” After signing this contract, you intend to purchase the property and remove it from the market.
The better way to call this contract is a reservation contract. It reserves the property for you. You would be charged a holding fee. You will have almost three weeks to complete the paperwork and get the property yourself.
Step7: Sign The Contrato De Arras
You will be asked to sign the Contrato De Arras along with the Contrato De Reserva contract. It is a private contract that binds you and the property seller. According to this contract, you must pay 10% of the total property value in the first ten days.
As soon as all the legal checks have taken place, you will be required to sign the private purchase and state the property’s total price.
Challenges Faced While Buying Property In Spain
While many countries have similar protection in places, a few minor pitfalls might need fixing when buying a new property in Spain.
In the following, we reveal some minor mistakes that can result in expensive ventures.
i. Registry issue:
When buying a new property in Spain, you must be aware of the property’s registration. Moreover, there is no proper registration for some of the properties in Spain due to the area being close to the national park or beach.
ii. Financial issue:
These kinds of properties have financial issues. You might end up buying a property that already has debts to pay.
iii. License issue:
In Spain, you require permission to build a new property. Ensure that your property is licensed.
iv. Contractual issue:
Don’t ever think that the law of the UK is applicable in Spain. Yes, you will find some common laws, but they differ from state to state.
Final Verdict!
Buying a property in Spain is like a dream come true. However, dreams and real estate property in Spain are expensive. Then, the mountains of paperwork can make the whole process even more complicated.
If you want to buy a property in Spain, start your search after hiring a lawyer. The lawyer will help you cover all the legal aspects of the property and will ensure no one is scamming you.
As I said, if you follow the steps mentioned in this article, you will be okay with getting the right property for yourself.
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