Buying a property in Spain: Property Buying guide
First decisions
When planning to buy a property in Spain you have to be prepared to go through a bureaucratic process that could take some time as you might need some professional and legal assistance.
We recommend you to start looking for a property a long time in advance. The purchase of a property is a very important decision and should not be made in haste. Take your time to compare and evaluate the advantages and disadvantages of buying your dream property.
Visiting a property
When visiting a property we are sometimes blinded by its charm and therefore we tend to overlook very important issues.
After having consulted several estate agents in the area you have managed to gather a list of properties that are of your interest. And now the moment of truth is there, you are going to visit a property that might become your future possesion. Well, snap out our your dream and start looking with your eyes before your dream-house becomes your hell-house.
Here are some tips for you to look at:
Analise the area: where is the property located. Is there a lot noise from: pubs, discos, cars, planes. Maybe there are risks of flooding etc.. You also do not want to be close to an electric power plant or a “depuradora” a sewage farm.
Inspect the house. We advice you to visit a property with an expert or someone some kind independent professional to make sure the property is what you are expecting. Check the solidness of the walls, ceiling and wood condition. Do not forget to the heating, a/c, water and gas.Do not be afraid to ask questions or check the state of the property, if you plan to buy the property you do not want disappointing surprises.
Price of the property
Once you have visited the property, find out if the asking price is in-line with the market value and local value. Look for similar properties in the area and do a price comparison.
As a rule of thumb if the demand for properties is higher than supply, the buyer will find himself in a less negotiable position. However, if there are many properties being offered and there is no much demand, the buyer will be in a stronger position to negotiate.
The cost of buying a property in Spain
Buying a property in Spain requires some knowledge on the existing rules and regulations.
There are some aspects that must be taken into consideration when buying a property in Spain, these include: necessary documentation, transaction costs, notary expenses, etc.
When buying a house in in Spain, we might feel mislead by the actual costs involved in buying a house. We have to take into consideration all the extra costs involved, which are more or less 7% of the value of the property. Let's take a closer look at these extra costs:
Notary fees
are the costs for obtaining the deeds or escritura 
. In general the Spanish law states that these costs should be distributed by the signing parties; which means that the sellers should take care of the original costs of the escritura and the buyer as to pay for the copies. However, it is normally the buyer that pays for all these costs. These costs are based on the original deeds of the property.
Property registry costs
This is normally a standard fee also based on the original deeds of the property.
Commission costs
If you are buying a house through a real estate agent he will probably charge a commission which can be between 2% up to 8%.
The buyer also has to take into consideration that besides these costs there are also the costs arising from the mortgage.
The buyer has to take into account that the costs he pays will be destined to pay off taxes, which are:
IVA : VAT
IAJD : Tax on documented legal acts
ITP : Property transfer tax
IBI : Yearly property tax
IRPF : Income tax
Plusvalía : Property tax
The buying process
Buying a property in Spain is not an entirely simple matter, and depends on whether the property is new and bought directly from the constructor, when under construction, or if the property is second hand. Much data have to be verified to assure a safe purchase.
Check first
When buying a property the sellers will firstly need to know that the property is owned by the righteous owner and that it is free of debt and that the specifications like the amount of square meters match. The document were these details are described is called Registro de la Propiedad or property registry.
Preagreement
When buying a Spanish Property the buyer is required to pay 10% as a deposit called arras . In case the seller cancels the sale, he is obliged to pay double the deposit. In case the buyer backs off, he will loose this deposit.
Finally
The property transfer is certified by the notary or notario who will read the contents of the deed of purchase and will ask the buyer and seller to sign the contract.