A “step-by-step plan” for purchasing real estate in Spain

During the summer months, people traditionally head abroad. One family opts to go camping in a tent or caravan, while another prefers to book a hotel room. Every year, more and more people decide to rent a holiday home abroad. Booking accommodation often represents a substantial investment year after year, which is why an increasing number of people are considering investing in a second home. At Reyns Advocaten, we are pleased to assist you with all your questions about purchasing real estate in Spain.

Mr. Christian Stoop, Senior Partner at Reyns Advocaten, assists fellow nationals on a daily basis with the purchase of property in Spain. He guides you through the steps required to become the owner of a property in Spain without difficulties:

Choosing a property

First and foremost, it is advisable to form a clear idea of the type of property you are looking for (apartment, villa, …) and the region you prefer. It is worthwhile to make a thorough visit to the region of your choice beforehand. After all, a purchase involves a significant investment.

Contacting a real estate agent

A real estate agent can be very useful. They can present you with a wide range of properties. Caution is nevertheless required. In Spain, the profession of real estate agent is neither protected nor regulated. We therefore recommend engaging a reliable agent with sufficient experience to assist you in selecting properties.

Making an offer

Once you have made your choice, you can make an offer. In Spain, it is customary to pay a deposit, a kind of reservation fee, of €6,000 to €10,000 to take the property off the market. This is done by means of a ‘reservation agreement’. In principle, the amount is non-refundable. It is, however, advisable to engage a lawyer already at this stage. 

Unlike a Belgian notary, a Spanish notary has only a very limited duty of verification. The lawyer will carry out the preliminary searches and review the documents. The preliminary searches relate, on the one hand, to town-planning aspects and, on the other hand, to the identification of the owner. It will also be checked whether the property is free of mortgages or attachments. This gives you a clear picture of what you are buying, the possible risks, and any additional costs.

Private agreement 

The next step usually follows when signing a private agreement, meaning without the involvement of a notary. In Spain, this may take the form of a purchase agreement, an option contract, or an ‘arras’ contract.

An ‘arras’ agreement provides that the seller may still unilaterally cancel the sale, provided the buyer is paid double the deposit already paid by the buyer. These agreements must include the following necessary details:

• the identification of the buyer/seller
• the registration details
• the cadastral number (to identify the property and verify whether there are any attachments or mortgages on the property)
• unpaid local taxes 
• the price
• the date and method of payment
• the date of signing the notarial deed

As a rule, a 10% deposit is paid upon signing. It is usually stipulated that this deposit will not be refunded if the buyer fails to meet their obligations on time.

Notarial deed 

On the agreed date, the parties appear before the notary. If desired, the lawyer can represent you on this occasion on the basis of a notarial power of attorney, which can be executed before a Spanish notary or even before a Belgian notary. In that case, a Belgian notary must, however, provide the “Hague Apostille”. The advantage is that you do not need to travel.

The title deed (Spanish: escritura de compraventa) is signed. At that moment, the full purchase price is paid and ownership is transferred. The lawyer also takes care of registering the title deed in, among others, the land registry and cadastre, and arranges the transfer of the water and electricity contracts.

NIE number

As a foreigner, you must have an NIE number (Spanish: Número de identificación extranjeros). No purchase can proceed without this number. You can no longer even open a bank account without it. Applying for an NIE number is also one of the lawyer’s core tasks.

Conclusion

If you decide to buy a second home in Spain, it is best to rely on a law firm you trust. At Reyns Lawyers, we provide extensive support for real estate transactions in Spain (legal, tax, notarial, …) in your own language and from the comfort of our offices in Belgium. We do so in cooperation with the Spanish law firm Fontán y Zubizarreta, with which we are affiliated. This firm is based in Marbella, enjoys an excellent reputation and has many years of expertise in Spanish real estate law. There is therefore no need to look for a Spanish lawyer. We handle everything together without additional fees or costs.

In general, we provide the necessary real estate due diligence related to the purchase/sale of property in Spain. This means that we not only assess the purchase from a legal perspective, but also verify whether all urban planning and tax permits are in order. In addition, we take care of the application for the required NIE number, complete the mandatory formalities and registrations in the land registry and cadastre, utilities, and the like. After the purchase, we provide your after-sales service, file the annual tax return and continue to follow everything up.

Voor alle juridische vragen kan u altijd bij ons terecht.