Spain is been considered as one of the countries chosen by foreigners as their place for residence or retirement, their place to be.
Not only because our beloved Sun star floods us most of the year, but also because it has great and diverse gastronomy and culture. Being a small country, the variety that the different municipalities and cities offer in all of these issues and, a few meters away from each other, is guaranteed.
We fly and get excited about the idea. Then landing comes ... What to do to get my long-awaited home and buy a home, “THE HOME”? We are distressed by the idea of all paperwork to be obtained or signed, concerned about our ignorance or lack of knowledge of the jurisdiction itself and common practices in Spain, but, ... we want that house.
Well, our intention is to help you with this. Here you will find several main and basic indications that you should take into account if your intention is to acquire a property in Spain.
¿What do I need to know before buying a house?
- First of all, you have to bear on mind that, for the purposes of the acquisition, you need to obtain the relevant tax identification number, well known as the NIE.
- It is recommended that, once the property to be acquired is chosen, you should entrust general due diligence to check its legal status: basically that the owner of the property has a legal title of ownership over it, that the property is free of charges, encumbrances, etc. and all inherent costs are paid and there are no pending costs hindering it or even that there are no third-party rights on it that prevent or limit your right to acquire, among others.
- Once all these issues have been verified, it is common practice in Spain to sign a deposit agreement called a “contrato de arras”. By means of this document, buyer and seller undertake to acquire/transmit the property within a period of time by pointing out and establishing the essential terms and, specifically, the price. However, in several cases, the parties prefer to attend directly to a notary in order to execute the relevant public deed for transmission, as indicated below.
- Transfer of properties in Spain must be done in a public document to be executed and granted before a notary. It is important to attend to the notary duly advised by an attorney, who will revise the public deed and ensure that this document includes the corresponding representations and guarantees by the seller protecting your interests. No more surprises than Christmas gifts… Payment of the remaining price or the total price –in the event attending directly to the notary- must be made at this time, either by giving evidence of a previous or simultaneous transfer of funds from a Spanish or foreign account or by generally delivering a bank check.
- Once the public deed is granted, it will be necessary to proceed with the liquidation of taxes before the Spanish Treasury. The relevant taxes and amounts to be paid to depend on the concrete transaction (mainly the first acquisition of a new brand property or subsequent transactions). Then you are able to register your title of ownership at the Property Registry corresponding to the municipality where you are going to reside. Likewise, the acquisition shall be communicated to the Real Estate Cadastre.
- Bear on mind that, the Real Estate Tax (IBI) is a cost that you must pay annually and is inherent to the property.
From now on, all you have to do is enjoy your new home, since you have well done your homework.
From GD Global Mobility we may help you to achieve your dreams and wishes. Do not hesitate to contact us if you need help and, in any case, thank you very much for reading this blog.