To buy your dream house in Spain


1.      Private purchase contract


Once you have found the real estate you wish to buy, the first thing you have to do is to write a private purchase contract. This will make the agreement legally binding. We should request, in order to perform this act, a simple note to the Property rights Register, where it will be checked who is the real owner of the Property, so that the signature may become legal and valid. Also, it will be checked the status of the liens, if there would be any (former mortgages, payment of taxes…) all these details should be stated in the contract, and we will make sure that everything is in perfect order at the moment of the signature at the Notary office.


What is settled in this contract:

–          who is buying and who is selling

–          what has been bought


Sales Price


  • the first payment’s amount and payment`s method
  • deadline for the official purchase contract in presence of the Notary (date to formalize the Deed)
  • as well as special agreements, such as, which personal state is included in the price, etc…



Generally, the seller must leave the house at the moment of the signature at the notary’s office. This particular day, the keys of the real state are delivered and from that moment it is possible to move in. It means the following customary rules:

II. Down Payment


It is customary that the buyer makes a down payment consisting of 10% of the agreed price, and in exchange the seller leaves the house to the new owner. As a fact this amount should be delivered at the moment of the signature of the purchase contract.


However, it may be possible that the seller does not have this amount of money, and then the payment can be split in two parts.


  • The first down payment for 3.000 € will be paid at the moment of the signature of the purchase contract. This amount may be paid by bank transfer, bank check, cash or with credit card (if this last payment’s method is possible)


  • The second down payment, for 10% of the value of the property (excluding the already paid 3.000 €), must be made one week later. That is usual time needed to make a bank transfer, issue a bank check, or obtain the amount in cash. The money can be transferred or to the private account of the owner, or to our client’s account.


III. Special contract clauses


It is also normal that the contract states, that in case the buyer does not wish to continue the purchasing process, (backs out of the purchase agreement) the seller is authorized to keep the down payment as compensation. The reason of this compensation is based on the idea that the seller has reserved the property for certain time, and that the purchasing process has already caused certain expenses.

In the other hand, in case it would be the seller the one who backs out of the purchase agreement, he will not only have to return the down payment, but he will also have to pay the same amount again to the buyer as compensation. This is regulated by the Spanish civil law (civil code) and it is very usual to write it in all purchase contracts.


IV.Delivery date

It is also marked in the purchase contract, the date of signing the deed (the appointment with the Notary), normally 2 months later, in order to give time enough to manage all the required actions.


V. Administrative tasks

In between the signature of the purchase contract and the signature of the deed, there is an intensive administrative work that is managed by the agent and other persons. We thoroughly check all the documents concerning the property. In case any clarification is needed, we contact ourselves the relevant professionals (lawyers, banks, architects, notaries, public agencies, tax office, community of owners…) in order to avoid any problem in the transfer of the property.


But do not worry at all, we will pay special attention to make sure that your purchase process is absolutely in order.


What documents and requirements are needed to buy a real state in Spain?

The following administrative work can be entrusted and professionally made by our agents. They will guide and advise you, about all the required formalities, through the whole process.

A.- Valid Passport and legal situation

B.- N.I.E. (Número de identificación extranjero) –

Identification number for foreing citizens. This number gives access to the tax system, so that we will be able to pay and register the chosen property. Our agents will take care of all the formalities regarding the obtainment of the NIE:


–  Statement of intentions in presence of the Notary.

– Pledge or booking contract, of the property to be subject of the sale

– Payment of the subsequent fees.

– You have to present yourself physically, in one of the National Police’s offices, in order to apply for the NIE (it can be obtained in 10 days)

The statement of intentions and the presentation at the police’s office has to be done by yourself, it cannot be delegated in anybody else. Off course, one of our agents will be there with you.

 (Today, a temporary NIE can be obtained, once the mentioned formalities have been done, that will allow us to make the purchasing process shorter and faster)

C.-  Bank account. With these documents we will be able to open a bank account in Spain, so that we can manage all payments in connection with the purchasing process, as well as attend the subsequent payments of other fees or duties, etc…


VI.- Property’s purchaising process

Once we have obtained the NIE and the bank account, the purchasing process can be started.


The deed (a Notary’s attestation) is the most important guarantee of the property’s purchase, of your legal situation and that you have duly satisfied all the required payments. The main issue of the deed is the fact that it gives legal security to the performed purchase agreement, since the Notary’s actuation gives assurance to the content of the contract.

A.- The Notary:

He will be the responsible of writing the purchase deed, therefore the purchase contract should be at his office 3 days before the official signature, so that it can be duly reviewed and compared by the involved parties, or their representatives. The notary office will verify the ownership of the property, as well as if the mandatory fees and taxes have been paid and if the property is free of liens and encumbrances.

Unless the Buyer has expressly waived it, the notary will request at least 10 days before the signature of the Deed, information from the Property Register regarding the juridical status of the property. Within this time frame, will the Property Register inform the Notary of any attempt of modification of the property’s juridical situation, (another sale, a mortgage, or an execution…). By requesting this information, we will avoid any attempt of fraud.



B.- Payment of taxes

The purchase of a property does imply certain taxes, based upon fixed percentages according to the price of the property. These taxes are managed by the Spanish autonomic regions and each one can decide and apply a percentage for these taxes. Please see below the following examples:

– for new construction dwellings

V.A.T (or in Spanish I.V.A) 10%

And A.J.D, or document duty (a tax applied over legal documents) that will be between 1.2% – 1.5%.

– for second hand dwellings (I.T.P. or Property Transfer Tax).between 7% and 10%

– Autonomic regions such as Catalonia or Valencia región: V.A.T.= 10%, A.J.D (document duty). 1.5 %, ITP 10%

– Murcia and Andalucia: V.A.T 10%, A.J.D. (document duty) 1.5% I.T.P 8%


C.- Proprerty rights register

It is a state Agency, where are registered all the properties with its description, owners encumbrances and liens. The registration of the property is voluntary, but it is totally recommendable since its registration will mean that:


– The sale will be effective against any other transaction, since it prevents that any other sale could be registered.

– Whoever that has registered the property of a real state, has its possession, unless something else has been proved.

– It will be necessary if we wish in a posterior stage, mortgage the property, or use it as a guarantee



VII. After the Notary’s office

Once everything at the Notary’s office has been settled, we will take care in your name, of address changes, electricity and water supply, phone connection … as well as all the necessary payments in order to leave everything in perfect order. Then, everything will be done.


Now, you can fully enjoy your new house!