Spanish Property Purchase - An Overview

It can surprise some people how easy it is to buy properties in Spain.

The speed of the Spanish system can, however, catch you out if you don't fully understand the system and it's assumptions.

We are able to introduce you to firms of Legal Professionals with the necessary understanding of the Spanish property and tax law to ensure that your purchase completes with no nasty shocks or surprises.

Below is a summary of the main points of the Spanish system, but it is vital that you take proper, qualified legal advice. 

Spanish Property Reservation Deposit

Once you’ve found your ideal property you simply reserve the property with a Reservation Deposit. We can arrange for a lawyer to be present. Between 3000 – 6000 Euros is usually sufficient. It is usually better to pay this by credit card or cash.

The deposit is refundable if the vendors change their mind but is not refundable if you cancel. Paying the reservation deposit guarantees that the property is taken off the market and is reserved for you at the agreed fixed price. If you haven’t previously appointed a local lawyer, we will be happy to arrange one with you. Your lawyer will explain the procedures for buying in Spain and all the associated costs.

Your lawyer will negotiate and discuss the purchase terms with the vendor’s lawyer and, as well as the agreed price, will include all your other requirements such as fixtures and fittings, the completion date and your preferred method of payment.

Exchange of the Private Purchase Contract

Once you’ve paid the reservation deposit you have a period of up to 30 days to exchange the private purchase contract with the vendor. At this stage you will pay the balance of the deposit. You can arrange for your lawyer to handle both this stage and the completion on your behalf if you are unable to attend. Before your lawyer exchanges contracts he will have completed the detailed searches and investigations at the Land Registry in respect of the property.

With a new property, before you instruct your lawyer to complete the purchase, the property will be inspected on your behalf and detail anything that might need putting right. Once rectified to your satisfaction, the title deeds can be signed.

Completion

Finally, on the day set for completion you will be taken to the Public Notary with your lawyer to sign the Title Deed, making the final payment to the vendor who simultaneously passes you possession of the property and hands you the keys. At this stage the sale is completed. Immediately after completion the Notary will fax details of the title deed to the local Land Registry confirming your identity as the new owner. In this way the Notary and Land Registry are acting jointly to protect and guarantee your interests.