Buying property in Spain: Answers to the 5 key questions
At Eurojavea, we understand that buying property in Spain is an exciting experience, but it can also seem complex, especially if you’re unfamiliar with the necessary steps. That’s why we’ve answered the five most frequently asked questions from our clients here:
What is the first step in buying property in Spain?
The first step is to determine your budget. This not only involves knowing how much you want to spend, but also understanding additional costs (see question 2). It’s also crucial to get mortgage advice from a Spanish bank to know how much you can finance.
Eurojavea Tip: If you don’t yet have a Spanish bank account, open one before starting the process. It’s essential for making payments related to the purchase. We can recommend trusted banks and financial advisors.
What costs are involved in buying a property?
When buying property in Spain, there are additional costs to consider besides the purchase price. These costs typically amount to 10-15% of the property’s value and include:
- Transfer taxes: Between 6% and 10%, depending on the autonomous region. For new builds, this is replaced by VAT (10%).
- Notary fees: Approximately 0.5% of the purchase price.
- Property registration fees: Around 1% of the purchase price.
- Legal and agency fees: Lawyers typically charge about 1%, while real estate agents charge 3-5% (usually paid by the seller).
- Mortgage costs: These vary depending on factors such as loan amount, lender, and client-specific conditions.
Eurojavea Tip: Request a breakdown of all costs upfront to avoid unexpected expenses.
How do I know if a property is a good investment?
Several key factors determine whether a property is a good investment:
- Location: Properties in popular areas like Jávea tend to hold their value. Factors like sea views, proximity to amenities, and tourist hotspots influence profitability.
- Future developments: Research urban development plans in the area, such as new infrastructure, which could increase the property’s value.
- Condition of the property: Older properties may have high renovation costs. It’s advisable to carry out a technical inspection before buying.
Eurojavea Tip: Our team can provide insights into local market trends and value projections, helping you make an informed decision.
Can I buy property in Spain if I don’t live there?
Yes, absolutely. Every year, many foreign buyers purchase property in Spain, but there are specific requirements you’ll need to meet:
- Obtain an NIE: This is a foreigner identification number required for all legal processes in Spain.
- Open a Spanish bank account: This is essential for managing payments, such as taxes and utility bills.
Eurojavea Tip: We can assist you in obtaining an NIE and finding experienced lawyers familiar with the Spanish real estate market.
Spain offers a wide range of major banks to help you achieve your dream home. Well-known names such as Caixa, Santander, Bankinter, and Sabadell often have multilingual staff ready to assist you. Choosing the right bank depends entirely on your personal needs and circumstances. We advise you to carefully assess your requirements before making a decision.
How long does the property purchase process in Spain take?
The property purchase process in Spain is generally quicker compared to other countries. From finding the property to the final signing, it typically takes 2-3 months.
- Step 1: Sign a reservation agreement or pre-contract.
- Step 2: Handle paperwork, including mortgage applications, NIE documentation, and the pre-contract.
- Step 3: Sign the final deed at the notary, officially registering the property in your name.
Eurojavea Tip: Working with an experienced real estate agent can streamline the process and avoid complications.
At Eurojavea, we make the process of buying property in Spain straightforward and transparent. Have more questions? Contact us or visit our website to explore our available properties. Discover our villas, apartments, and plots, and find your dream property. We’re here to help you every step of the way!