It’s not just the Spanish climate that is welcoming to UK nationals – when it comes to buying a property abroad Spain offers one of the most straight forward processes for overseas buyers. With rental yields in the region of 7% per annum, purchasing a buy-to-let property in Spain is an attractive financial investment and despite recent price increases, Spain is still one of the most appealing countries in Europe to buy your dream overseas property. Read on for our comprehensive step-by-step guide to buying a property in Spain:
- Financing & Costs
Having settled on the beautiful regions of Alicante & Murcia for your property search you should now think about your budget and understand what financial options are available to you. Spanish banks will offer mortgages to foreign buyers as long as you meet certain income and solvency requirements. At this stage it’s also a good idea to be aware of the costs involved when buying a property in Spain. These will vary by area and many are negotiable. You should allow for fees in the region of 12 -14% of the property’s asking price. You can find out more information about the tax requirements and various associated with buying a property in Spain in our separate guide here
- NIE Number
You’ll require an NIE number (a national ID number for tourists) before buying a property in Spain. This can be obtained in Spain via the National Police or via your lawyer. Whilst the process is relatively straight forward it can take a few weeks to receive your NIE number so we recommend applying for your number as you begin your property search. Read more about how to acquire an NIE number here
- Hiring a solicitor in Spain
Unlike in many countries, there is no legal requirement to hire a lawyer when purchasing a property in Spain. However, as a foreign buyer we highly recommend that you have a bilingual lawyer to act on your behalf, translate documents and assist you with the entire buying process.
- Making an offer & completion
Once you have found your dream Spanish property you will need to make an offer via the seller’s agent. As in the UK, Spanish property prices are open to negotiation. Once agreed you will sign a preliminary contract and pay a deposit which is normally around 10% of the asking price. You can then arrange any mortgage you require before you sign the Private Purchase Contract (PPC) which lays out the conditions for completing the property transfer. You will also have to sign the Escritura (Title Deed). This is a formal document and should be signed in front of a notary. Normally the keys are handed over to you when you sign the deed. You can then register you new property with the land registry. Congratulations – you are now officially the legal owner of a property in Spain!
