Frequently asked questions about buying property in Spain

WHAT taxes do I have to pay when buying a property in Spain?

In Spain, the taxes paid by the buyer of a property depend on the region and the type of property bought/type of transaction. If it is a secondhand property, buyers must pay the Transfer Tax. In the Region of Valencia, it represents 10 per cent of the purchase price.

On the other hand, if it is a new property, bought by a developer, buyers will have to pay Stamp Duty Tax (1.5%) and VAT (10%). When purchasing plots, the VAT will be at 21 per cent. Is it necessary to have an NIE in Spain to buy a property?

Yes, to buy a property in Spain you will need to have an NIE. In addition, please note that the NIE must be registered with the competent tax authority.

Do I need a Spanish bank account to buy a property in Spain?

Although it is not necessary (at least in the initial stages: signing of the reservation contract) it is highly advisable to have a bank account in Spain to speed up the process and avoid delays and complications. It will also be extremely useful to direct debit water and electricity bills, etc, and also for the final payments of the purchase, which are normally made by banker’s draft.

Is it necessary to travel to Spain to buy a property?

At the end of the purchase procedure, you will have to come to Spain to sign the public deed of sale before a notary. If this is not possible, please note that you could also grant a Power of Attorney in favour of another person, so that he or she can represent you.

What are the basic checks to be made when buying a property in Spain?

On the one hand, you will need to check the Land Registry to confirm that the vendors are the registral owners of the property, that its description matches the physical reality and that there are no encumbrances, mortgages, etc.

On the other hand, it is also advisable to verify the size and dimensions indicated in Cadastre. Making sure that the property has all the necessary licences, complies with municipal planning, there are no open procedures in the town hall for the re­establishment of the urban planning le­ gality, etc is also crucial.

How long does it take to complete a purchase of a property in Spain?

It will depend on each transaction and its specific circumstances. In any case, it is always advisable to allow several months to elapse between the signing of the initial reservation or purchase contract, and the public deed at the Notary’s office. This will allow you to carry out all the necessary checks, receive the pertinent certificates from the town hall confirming whether there are any infringement proceedings open in the municipality, etc.

Is it compulsory to appoint a lawyer to buy a property in Spain?

No. However, although not compulsory, it is highly advisable. An experienced solicitor in Real Estate Law will be able to counsel you on the risks involved in the purchase, the checks to be carried out, preparation and negotiation of the contract, etc.

Should I sign a reservation without legal advice?

No. It is essential to get proper legal advice before paying any amount or signing any type of document (even if it’s the reservation). Otherwise, you could be forced to buy a property under non desirable conditions. Through expert legal advice, you will be able to make the purchase conditional on key issues such as the property not having any type of infringement procedure open, the description of the property coinciding with the physical reality, etc.

Is it true that notary fees are always paid by the buyer?

Not exactly. According to art. 1.455 of the CC, the cost of granting the deed is paid by the vendor. Whereas the cost of the first and other copies, must be paid by the buyer. However, in practice, it is common to apply the customs of the area. For instance, in the Marina Alta, the buyer usually pays the Notary fees. In any case, the parties are free to make whatever arrangements they wish.