12/11/2022
3 steps to buying a property in Spain
Step 1 - Make an offer
Let’s say you found a property of your dreams but it’s a bit out of your budget or you believe its market price is lower than advertised. Depending on the price, you can usually negotiate up to 5-10% of the sum.. (read how to make an offer on our website)
Step 2 - Arras
Okay, your offer got confirmed. Now the agency will prepare the Arras contract, it’s a private contract between the owner and you where clear sale conditions and timeframes are stated and where you confirm your willingness to buy the property paying 10% of the total price, the owner, on the other hand, confirmed their willingness to sell it to you on the day agreed in this document. In case one of you decide to not proceed with the deal for personal reason, the client loses 10% and the owner has to return the client what he paid + another 10%
Step 3 - Notary
So all went well, and now you need to sign the deal to finally get your keys. If you don’t know any notary, the agency will offer you one or two so you can choose.
If you don’t use a mortgage, before coming to the notary you will need to request a check in your bank for the rest of the sum you need to pay, the payment must be done via Spanish bank only. When signing the deal, you are expected to bring the check and pay notary fees. Notary fees range approximately from 0.1% of the declared price of a property (400,000+ euros) to around 0.4% (for properties < 100,000 euros). If you use a mortgage then you will have to pay Notary fees on the mortgage deeds as well.
And of course, you’ll need to pay Taxes. In Catalonia these are:
* 10% VAT – if you buy a brand new property
* 10% ITP (Property Transfer Tax)- if you buy a pre-owned property (5% if you are under 33 y.o. and it’s your first home)
* 500-700 euro register fee if you buy a land
Read the full article on our website to learn more