BUYERS GUIDE TO PROPERTY IN SPAIN
Buying property in your home country can be nerve-wracking enough; buying property in Spain adds extra challenges. But don’t be put off – you can do it, with our help and that of our trusted partners. We will be with you every step of the way in the journey to finding your home in the Sun.
Your Property Purchase Journey
Congratulations! We hope you have found your dream property in the beautiful Costa de Almería with the help of Mojácar Homes & Villas. The next step is for us to put you in touch with a lawyer or solicitor to act on your behalf. The lawyer will carry out all the necessary searches on the property and advise you on proof of ownership and any charges (mortgages, unpaid bills etc.) which would need to be lifted before, or at the point of sale. It is essential at this stage to apply for an NIE number (foreigner identification number), open a bank account and leave Power of Attorney (if this is required) with the lawyer before leaving Spain. Our priority is to ensure that your buying experience is smooth, transparent, and enjoyable from start to finish.
How Long Does the Purchase Process Take?
A typical resale property transaction usually completes within 5 to 6 weeks, although it may be quicker if your NIE number, Spanish bank account, and finances are already in place.
When the reservation contract is signed, both parties agree on a completion deadline. In many cases, completion can be flexible, particularly if:
- the buyer is waiting to sell a property in their home country;
- mortgage arrangements require additional time; or
- the seller is purchasing another property before moving.
As long as both parties agree, completion can take place on or before the agreed completion date.
Purchasing a New-Build Property
The process for new-build properties is slightly different, as completion depends on the construction schedule.
Payments are normally made in agreed stages throughout the build. Developers should provide bank guarantees for each stage payment, protecting your investment should they fail to fulfil their contractual obligations.
Choosing a Solicitor
Selecting an experienced and reputable independent solicitor is one of the most important decisions you will make during your purchase.With almost 20 years of experience helping clients buy property throughout Andalucía, we have built strong relationships with a number of highly respected legal professionals and have received recommendations from thousands of satisfied buyers.We are happy to provide details of solicitors we know and trust. You can also view our recommended professional services here:
https://mhvspain.com/local-professional-services-recommendations/
Ultimately, the choice is entirely yours. We recommend selecting a solicitor with whom you feel comfortable, who communicates clearly in your language, and who will represent your interests throughout the transaction.
Your solicitor will:
- Carry out all legal due diligence on the property.
- Confirm the property is legally registered and free from debts or encumbrances.
- Verify licences and planning documentation where applicable.
- Arrange the transfer of utility contracts, including electricity, water, and telecommunications.
- Register your ownership following completion.
- Ensure all taxes and legal formalities are completed correctly.
Once a purchase price has been agreed between buyer and seller, the next step is to reserve the property by paying an initial deposit. This reservation deposit secures the property and, where applicable, requires the seller to withdraw it from the market, including from any other estate agents if the property is being jointly marketed.
Mojácar Homes & Villas will prepare the Reservation Contract (Contrato de Arras), which is signed by both parties. This contract is governed by Spanish Arras Law and provides legal protection for both buyer and seller.
The initial reservation deposit is €3,000 . This removes the property from the market and allows your solicitor sufficient time to carry out all necessary legal checks and due diligence.
Approximately 21–28 days after the reservation contract has been signed, the balance of the 10% contractual deposit is payable. The initial €3,000 reservation deposit forms part of this 10%, not an additional payment.
Once the 10% deposit contract has been signed, both parties are legally committed to the transaction.
Under Spanish Arras Law:
- If the seller withdraws from the sale, they must return double the amount of the deposit paid as compensation.
- If the buyer withdraws without legal justification, the deposit paid will be forfeited.
Before completion, a full inventory of fixtures, fittings, and included items will be prepared by a member of our team and attached to the purchase contract where appropriate.
Completion at the Notary
The purchase officially completes when the Escritura de Compraventa (Title Deed) is signed before a Spanish Public Notary (Notario).
The Notary is an independent public official responsible for verifying the legality of the transaction, confirming the identities of all parties, and ensuring the deed is executed correctly.
Completion takes place at the Notary’s office and is normally attended by both buyer and seller (or their legal representatives), together with their solicitors where appropriate.
If you are unable to attend in person, your solicitor can sign on your behalf using a Power of Attorney, provided this has been arranged in advance.
Important: Please ensure that the full purchase funds have been transferred into your Spanish bank account before the completion appointment, as the final balance must be available on the day of signing.
After Completion
Following completion, the Notary submits the Title Deed to the Spanish Land Registry for formal registration.
Registration can take several months, so there is no cause for concern if you do not receive the final registered deeds immediately.
Once you have become the legal owner, you should also register on the Padrón Municipal (local residents’ register) at your local Town Hall (Ayuntamiento). Registration on the Padrón is recommended for all residents and may be required for access to certain local services and administrative procedures.
We’re Here to Help
Buying a property in Spain is an exciting milestone, and our experienced team will be with you every step of the way. From your initial reservation through to completion and beyond, Mojácar Homes & Villas is committed to making your property purchase as straightforward, secure, and stress-free as possible.
PURCHASE FEES AND TAXES
A brief indication of the type of expenses you will be required to pay on your property purchase. You will typically be looking at 10% on top of the property price to cover all fees and taxes..
7% TRANSFER TAX
600€ NOTARY FEES (Approx)
600€ LAND REGISTRY (Approx)
1200€ LEGAL FEES (Approx)
We hope this information is of help to you in your search so that right from the start you clearly understand how much a property will cost you, what price bracket can you look at.
It is advisable to appoint a good lawyer when buying something so important. Your lawyer can help to advise you on any problems or issues and also help to prevent any future problems by checking all the paperwork associated with the property you are interested in buying. Your lawyer will also conduct searches on the paperwork and ensure that all is legal with the following:
- The property is free from any debts, problems, charges and is up to date with all their payments.
- Property and land match the details registered, and the seller is registered as the legal owner
- Everything is in order with the title deeds and the property is legal
- All the taxes and costs are correct.
- Other essential paperwork is applied for i.e. Id number for Foreigners (NIE)
- Council documents for IBI and rubbish fees are transferred into the buyers’ name.
- Direct debits set up for electric, water, community fees, rubbish fees and IBI.
- If there are garages or storage cupboards, then these should be included in the Escritura.
- If purchasing on an urbanization – obtain a signed document from the president of the community to declare there are no outstanding community debts.
Typically, lawyer’s fees are between 0.5 and 1% of the purchase price.
