Buyers guide

PREPARATIONS / FINANCING

Before actively start the search for a property we advise you to do a budget and consider how you intend to finance your purchase. An alternative approach is to apply for a loan from a Spanish bank. Mortgages granted are generally for 60-80% of the property’s value.

CONTACT & VIEWINGS

When clear on what you are looking for so that you can focus on properties that meet your requirements, contact us. We will carry out a thorough analysis and send you suggestions which match your wishes.

As soon as you have spotted the houses or apartments that you would like to see, contact us and we will help you plan your visit to Spain and book the viewings.

We usually arrange viewings for several properties on the same day and we also present the best aspects of the areas so that you get the best possible feel for the property as well as the surroundings.

At all stages, we will listen to your requirements and support you to find the perfect property in Spain.

BIDDING

Once we find the right property, we will start negotiating on your behalf. In Spain first offers are usually below asking price.

New developments and some vendors are not open for negotiation but our aim is to do all possible to achieve the best possible deal. The buyer and seller negotiate a final price.

Now it is time to obtain the N.I.E. the ID number for foreigners in Spain. It will be your official Identification Number in Spain. Also you will need to have a Spanish Bank Account.

If you don't have a solicitor in Spain, we will recommend you a lawyer who will verify all documents and licenses referred to the property. The lawyer will arrange the inscription of the new deed in the land registry, open a bank account for you as well as arrange payments of all the relevant transfer taxes associated with the purchase

RESERVATION CONTRACT

When the offer is accepted, the reservation contract will be signed to take the property off the market. A deposit between 6,000-20.000 EUR will secure the property while the due diligence is being conducted. You may also want to arrange a mortgage during this time.

This reservation deposit is fully refundable in the event that your lawyer should discover any legal impediments pertaining to the said property.

PURCHASE AGREEMENT

This agreement sets out all the applicable terms and conditions. In conjunction with this, you must also pay 10% of the purchase price (minus the reservation fee you have already paid).

FEES & TAXES

In Spain, there are a number of taxes which must be paid when you purchase a property.

Transfer tax
Between 8-10% of the purchase price.

Stamp duty
When buying a new-build house you will need to pay extra stamp duty of around 0.5-1.5%.

Notary & registration fees
Normally between EUR 500 - 1,000.

Conveyancing solicitor
Most solicitors charge around 1% of the purchase price.

Overall cost
Overall, you can generally expect to pay an additional 12-14% on top of the purchase price. Your legal representative will calculate the cost for you.

COMPLETION

When it is time for completion, the seller and buyer will meet with their respective solicitors at a notary public’s office. If you have signed a power of attorney, you will not need to attend in person.

The completion date is the date that you get access to your new property. The purchase is finalized and you pay the remaining part of the purchase price, 90% + taxes and fees. After that, the home is yours.

Svea Homes and your lawyer will be assisting you during all the process and even after.