Norwegian Guidance from your property search through to completion
Buying property in Spain is a different process from buying property in many other countries. Perfect Marbella guides you through the various stages and makes sure you understand what is happening along the way.
We start by understanding what you are looking for – your preferred area, type of property, budget and how you intend to use the property. We then search for suitable properties and arrange viewings, including properties marketed through other estate agents and developers.
Once you have found a property you would like to buy, we assist with communication and negotiations with the seller or the seller’s agent. We always recommend that buyers appoint an independent Spanish lawyer to carry out the necessary legal due diligence on the property and protect the buyer’s legal interests.
Throughout the process, we remain in contact with you, the agents, lawyers and other parties involved, following the transaction through to signing, completion and the handover of the keys.
Our role is to make the buying process as clear and straightforward as possible – allowing you to focus on finding the right property.
- Property Viewings
Carefully planned viewings based on your requirements
Once we have established your preferred location, property type, size, budget and other priorities, we can prepare a selection of suitable properties and arrange your viewings on the Costa del Sol.
Before you arrive, we coordinate the appointments and plan the viewing schedule so that your time is used efficiently. During the viewings, we accompany you to the properties, help you compare the different options and provide information about the properties and surrounding areas.
A viewing trip is also an opportunity to get a better understanding of different locations and discover whether your original preferences change once you experience the properties and areas in person.
Our aim is not to show you as many properties as possible, but to show you the right properties and give you the information you need to make a well-informed decision.
- Legal Assistance When Buying Property
We recommend using an independent lawyer when buying property in Spain
Once you have found a property you would like to buy, we always recommend appointing an independent lawyer to protect your legal interests throughout the purchasing process.
Your lawyer can carry out the necessary legal due diligence on the property, review the relevant documentation and contracts, and assist you through to signing and completion.
If you already have a lawyer you would like to use, we are of course happy to work with them. If not, we can recommend established law firms on the Costa del Sol with English-speaking lawyers and extensive experience in Spanish property transactions. You are, of course, completely free to choose whichever lawyer you prefer.
Perfect Marbella follows the transaction as your real estate agent, while the legal advice is provided independently by the lawyer you choose.
- Legal Due Diligence
- Your lawyer carries out the necessary checks before you purchase the property
- Before completing a property purchase in Spain, it is important that the legal status of the property is thoroughly reviewed. This is normally carried out by the buyer’s lawyer as part of the legal due diligence process.
- Your lawyer will typically check:
- * That the seller is the registered legal owner of the property
- * The legal status of the property and the relevant documentation
- * Whether there are any registered debts, charges or other obligations attached to the property
- * That relevant taxes, fees and community charges have been checked
- * Any other legal matters that could affect the purchase
- Once the necessary checks have been completed, your lawyer can advise you of any issues that should be resolved or clarified before proceeding with the purchase.
- Thorough legal due diligence is an important part of a secure property purchase in Spain.
- Contract
a. Reservation Agreement
Once you have found a property you would like to buy and the main terms, including the purchase price, have been agreed between the parties, a reservation agreement is normally signed and a reservation deposit paid.
The reservation deposit is typically between €3,000 and €10,000, depending on the value of the property and the terms agreed between the parties. For higher-value properties, the reservation deposit may be higher or agreed as a percentage of the purchase price.
Once the reservation agreement has been signed and the deposit paid, the property is normally taken off the market for an agreed period while the buyer’s lawyer carries out the necessary legal due diligence and the parties prepare for the next stage of the transaction.
The reservation agreement should also specify what happens to the reservation deposit if the purchase does not proceed. If the buyer withdraws for reasons not covered by an agreed condition or contingency, the reservation deposit will normally not be refunded. However, the agreement may include specific conditions relating, for example, to satisfactory legal due diligence, financing or other matters that need to be resolved before the purchase can proceed.
We always recommend that the buyer’s lawyer reviews the reservation agreement before it is signed and the deposit is paid.
b. Purchase Contract – Contrato de Compraventa
Once the necessary legal due diligence has been completed and any outstanding matters have been resolved, the next step is normally to prepare and sign a private purchase contract – Contrato de Compraventa.
The contract sets out the main terms of the transaction, including the purchase price, payment schedule, deadlines, completion date, what is included in the sale and the respective obligations of the parties. Many of the fundamental terms will normally already have been agreed in the reservation agreement and are then incorporated and defined in greater detail in the purchase contract.
Upon signing, the buyer normally pays an agreed portion of the purchase price. In many property transactions, this brings the total amount paid to approximately 10% of the purchase price, including the reservation deposit already paid. However, payment terms may vary from one transaction to another.
The buyer’s lawyer reviews the purchase contract and advises the buyer on its terms before signing.
Once the purchase contract has been signed, the parties proceed towards final completion and the handover of the property.
c. Title Deed and Completion – Escritura Pública
The final stage of your property purchase in Spain
The final completion of the property purchase normally takes place before a Spanish notary, where the public title deed – Escritura Pública de Compraventa – is signed.
At completion, the buyer normally pays the remaining balance of the purchase price, takes possession of the property and receives the keys.
Following the signing, the buyer receives a Copia Simple, which is a copy of the signed title deed. The lawyer will then normally arrange for the relevant taxes and fees to be paid and for the change of ownership to be registered with the Spanish Land Registry (Registro de la Propiedad).
The official title deed is prepared in Spanish and the transaction is governed by Spanish law. The buyer’s lawyer will assist throughout the completion process, explain the relevant documentation and follow up the necessary formalities after signing.
From signing the reservation agreement to final completion, the process often takes approximately 4–8 weeks, although the timeframe is agreed between the parties and can vary considerably depending on the transaction.
Perfect Marbella follows the process through to completion and remains available when the keys to your new property are handed over.Spain for you.
- Land Registry
Registration of your ownership after completion
After the public title deed – Escritura Pública de Compraventa – has been signed before the notary, the change of ownership is registered with the Spanish Land Registry (Registro de la Propiedad).
The registration formally records you as the new registered owner of the property. Before the registration is completed, the relevant taxes and fees associated with the purchase must be dealt with.
The buyer’s lawyer will normally follow up this process after completion and ensure that the necessary documentation is submitted and the registration completed.
Taxes and Costs When Buying Property in Spain
In addition to the purchase price, you should budget for taxes, fees and other costs
When buying property in Spain, there are a number of costs in addition to the purchase price. The applicable taxes and fees depend on several factors, including whether you are buying a resale or new-build property, the value of the property and the circumstances of the transaction.
These costs may include property transfer tax or VAT, stamp duty, notary and Land Registry fees, as well as legal fees. If the purchase is financed with a mortgage, there may also be costs associated with the financing.
The buyer’s lawyer will normally provide an estimate of the expected taxes and costs for the individual transaction and ensure that the relevant taxes and fees are handled correctly.
After completion, there will also be ongoing costs associated with owning property in Spain. These may include local property tax (IBI), community fees where applicable, waste collection charges and any taxes associated with property ownership in Spain.
It is important to keep the relevant documentation, invoices and receipts relating to both the purchase and the ongoing ownership of the property.
Perfect Marbella follows you throughout the buying process and works alongside your lawyer and other professionals to help you keep an overview of the different stages through to completion of your new property.
Mortgage in Spain
Financing your property purchase on the Costa del Sol
Both residents and non-residents can finance a property purchase in Spain through Spanish or international banks.
For non-residents, banks will typically finance up to approximately 60–70% of the lower of the purchase price or the bank’s valuation of the property. Residents may, in some cases, be able to obtain a higher loan-to-value ratio. The amount you can borrow will depend on factors such as your income, existing debts, age, the value of the property and the bank’s individual credit assessment.
When applying for a mortgage in Spain, the bank will normally require documentation including:
- Passport or other valid identification
- NIE number
- Proof of income and financial situation
- Tax returns and/or payslips
- Bank statements and details of existing debts
- Information and documentation relating to the property
The exact documentation required will vary depending on the bank and the buyer’s individual circumstances.
Once the initial financing has been assessed and a property has been selected, the bank will normally arrange an independent valuation of the property. This valuation, together with the purchase price and the buyer’s financial circumstances, will form the basis for the bank’s final mortgage offer.
Perfect Marbella can put you in contact with banks that provide financing for property purchases in Spain. We work with several Spanish banks and, for Scandinavian clients, can also provide contact with DNB Luxembourg, which has a representative office in Marbella.
Mortgage terms, interest rates and lending criteria vary between banks and can change over time. The time required to arrange financing will also depend on the bank and the individual application.
If you intend to finance part of your property purchase, we recommend exploring your financing options early in the process – preferably before making an offer on a property.
Payment Plans When Buying New-Build Property
Buying a property under construction normally involves a different payment schedule from buying a resale property
When purchasing a new-build property or a property under construction – often referred to as buying off-plan – the purchase price is normally paid in several stages leading up to completion and handover.
Payment schedules vary between developments and property developers. Typically, an initial reservation deposit is paid, followed by one or more agreed payments during the construction period. The remaining balance is normally paid upon completion and handover of the property.
Perfect Marbella works with established property developers and markets a wide selection of new developments on the Costa del Sol. We help you understand the development, the payment schedule and the different stages leading up to completion.
The buyer’s lawyer should always review the purchase contract, payment terms and relevant legal documentation before the contract is signed and substantial payments are made.
When buying a new-build property, Perfect Marbella follows you through the process – from selecting the property and signing the contract to completion and handover.