Determine budget:
First you need to map out how much you can spend on the purchase of your new home and how much you have already saved.
If you calculate this based on your monthly income, your budget should not exceed 35% to 40% of your net monthly income.
How will you pay for (second) home?
- One-off payment: you pay everything from your own resources.
- Mortgage loan: you take out a mortgage with a Spanish bank or in your own country.
A Spanish bank finances a maximum of 70% of the value of the house (to non-residents) and the remaining 30% must be paid by the buyer own funds. The term of a Spanish mortgage is up to your 75th birthday.
You should also take into account that the other costs (approximately 12%) such as transfer tax, notary and lawyer must also be financed from your own resources.
Determine type of home and location:
Whether you are looking for a new-build or an existing home, in the interior, on the coast or in a city. You know best what suits your personal wishes and situation.
Choose a buyer's agent
After you've decided where to buy and how much to spend, your search will become more focused and productive.
It's time to hire a buyer's agent.
A purchasing agent will look for the best suitable home for you within your wishes and specified budget without any obligation. In addition, he or she informs you about the process in such a way and ensures that you come into contact with a mortgage adviser and lawyer, if necessary.
Apply for a NIE number
The Nie number is used for, among other things:
- buying or renting a home
- Working in Spain
- Make an insurance contract
- Open Spanish bank account
- Taxes
- Telephone and internet connection
- Electricity etc.
Without the Nie number (Numero de Identidad de Extranjero) you will not do or arrange anything in Spain. It is a kind of social security number.
You can request the Nie number via:
- Consulate of Spain in your own country.
- In Spain, the NIE must be applied for at the competent Commissioner's Office of the National Police in the municipality where you live or are going to live.
- When you engage a lawyer to assist you legally during the purchase, he can also arrange this for you.
Visit the property:
Have you seen one or more properties that appeal to you?
Then we can make appointments with the selling brokers to view the homes. We guide you in this and think along with you critically.
In short, be thorough on your first home visit!
Make an offer:
When you have decided to buy a property after the viewing, you can make an offer. We will then negotiate the price and the sales conditions for you.
To reserve:
If the seller has accepted your offer, a reservation contract will be drawn up and only then will the property be taken off the market.
From this moment on you will have the time to possibly apply for a mortgage loan and to hire a lawyer. You now first have to make a down payment for the reservation contract, usually this is around € 6,000. This amount is deposited into the third-party account of your “own lawyer” and is later deducted from the purchase price.
Hiring a lawyer is very important!
A lawyer will investigate the legal status of the home for you and handle the entire financial flows. We can put you in touch with reputable law firms, specialized in real estate and speaking your own language.
After the legal status of the property has been approved by the lawyer, the reservation amount is transferred to the owner or developer as part of the initial deposit. Of course we make an offer subject to the correct legal condition of the property so that you never lose your reservation amount.
Sign the preliminary purchase contract (contrato de arras):
This is the first contract that is normally signed and it is a kind of provisional guarantee for the rights of both the buyer and seller, ensuring that both enter into the sale agreement. When you sign up, you pay a 10% down payment on the home, assuming all of a buyer's rights and responsibilities. If you as a buyer later decide not to proceed with the transaction, you will lose this deposit, but if the seller cancels the sale to, they will have to refund the deposit to you.
Sign the title deed (escritura).
This part of the buying process must be done before a notary with both the buyer and seller (or through a power of attorney to your lawyer) present. The deed should include a description of the property, as well as an explanation of any mortgages or charges on the home, the final sale price that has been agreed and how it will be paid, plus the taxes and expenses associated with the sale.
The transfer of the contracts for electricity, water and other matters is done by your lawyer as part of their purchase guidance.
Collect the keys from your lawyer and you are ready to move!
