The process of purchasing a house can be daunting at first. Every country has they own legalities that investors need to abide to. At Bellingtons, we can assist you throughout the process, finding the right property for you, liaising with lawyers and tax authorities and coordinating with local banks.

NIE

The NIE is a personal, unique and exclusive number that is assigned to foreigners who, for economic, professional, or social reasons, are engaged in activities related to Spain and require identification in this country.

A NIE obtained via the Consular Office identifies the bearer to all levels of the Spanish public administration but does not entitle the holder to reside in Spain or prove residence there.

Foreigners who wish to become residents in Spain must be aware of the possible need to obtain a visa beforehand. We will be able to assist you with this.

Lawyer

Thanks to our strong professional relationship, we will be able to recommend lawyers. It is important that the lawyer can speak your language and he will be guiding you through the process. Cost associated will be roughly 1%-1.5% of the purchase price. However, he or she will be responsible for the purchase contract, payment terms, due diligence on the property to make sure there aren’t any debts attached and ensuring the house is registered to your name on the land registry once purchased.

Notary

Once you’ve chosen your property and contract are in place, signatures and payment for completion will be made at the notary. Your lawyer will be with you. The approximate cost for the notary is 1.5% of the purchase price. The cost drops as the value of the property increases.

Transfer Tax/ VAT

Property purchases are subject to a flat 7% transfer tax (in Andalusia) if you are purchasing a resale home/from an individual. If you purchase a new development from a developer/promoter, the transfer tax is replaced with a fix 10% VAT tax instead. In both cases, stamp duty of 1.2% is also due to paid.

Spanish bank account

It is compulsory to have a Spanish bank account. We will organize meetings with local banks for you.

Final steps

Once the above items are completed and you’ve chosen your ideal property, you would need to reserve the property to take it off the market. Usually, a 1% of the purchase price is required. The lawyer will have 2 weeks before the Private Purchase Contract (PPC) is signed to complete the due diligence on the property. The deposit is refundable if due diligence comes out negative.

Once due diligence is completed, your lawyer will agree payment terms with the other party followed by a 10% payment of the purchase price. Between the PPC and completion on the property, the period will range between 4-6 weeks. The lawyer will use that time to finalize the purchase agreement and make sure deeds are ready to be signed on completion day!

Signature on completion will be made at the notary. The contract will describe the property, location as well as identifying who you are buying the property from. Keys will exchange hands and now the property is yours.

Your lawyer will then take a copy of the contract to the land registry and obtain your title deeds “Escritura Publica”

Note: a bank representative will also be present at the notary to pay and sign the mortgage.

Choose a property and pay a deposit → Private Purchase Contract (PPC) → Completion.

Mortgages

If you’re buying a property in Spain, you may be considering taking out a loan to finance part of the purchase. Getting a Spanish mortgage is possible for non-residents.

1. Perhaps the biggest benefit of all since it allows you to buy a bigger and/or better property. In areas popular with foreign buyers, extra budget often makes the difference between an average property and an exceptional one. But don’t be too ambitious – few Spanish banks allow more than 60% loan-to-value (LTV) to non-residents and 50% is often the norm.
2. To apply for a mortgage the following is required:

Copy of your latest tax declaration or proof of income from an accountant.

Statements of last 3 months from your bank account.

Details of your bank in your home country.

Photocopy of your passport.