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How to buy a house in Spain: a complete guide

Are you thinking of buying a home and don’t know how to go about it? In this BMI Spain blog article, we tell you how to buy a house in Spain step by step and all the aspects you need to take into account.

Take a pen and paper and write down every detail. The house of your dreams is just a few steps away!

How to buy a house in Spain: key factors to take into account

In order to know how to buy a house in Spain, before you start there are three fundamental factors that you need to take into account before the purchase of your new home. These are detailed below:

Budget

The first thing you have to take into account if you want to buy a house is to carry out an analysis of your economic situation in order to know approximately how much money you are willing to pay, taking into account your savings and current income.

Pay cash or mortgage

Once you know the budget you have and know the amount of money you have available for the purchase of the property, you will have to decide whether you can pay cash or, on the contrary, apply for a mortgage to finance the purchase of your home.

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Bear in mind that if you finally agree to buy the property utilizing mortgage financing, you will have to expect an expense every month until the total amortisation of the credit granted.

One way to find out what the mortgage payment will be like is to use mortgage simulators, normally the banks have their own on their websites.

Spaniards and residents/non-residents

Finally, you must take into account whether you are Spanish or resident in Spanish territory or, on the other hand, if you are a non-resident in Spain:

  • Spaniards and residents: there are no requirements for citizens of Spanish nationality or persons with residence in Spain.
  • No-residents: If you are a foreigner not a resident in Spain, you must have a NIE, which is a personal, unique, and exclusive number that all foreign buyers must have for fiscal purposes.

In addition to the obligation to have a NIE, it is advisable to have a Spanish bank account. Although it is not compulsory, bear in mind that all invoices and receipts related to the sale and purchase have to be paid in Spain, so it will be much more convenient to have a bank account in this country.

If you decide to open a bank account in Spain, because of the money laundering banking policy, you will need to provide the tax identification number of your country of origin.

How to buy a house in Spain: step by step

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Search for the house

You may have already found the house of your dreams, but on the other hand, you may be considering buying a house in Spain and need to find one that matches your expectations.

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Here are some tips on how to buy a house in Spain to keep in mind:

  • Whether you have decided on a property or are still looking, compare the different options available to you.
  • Visit the house and examine its condition: state of the windows, doors, façade, etc.
  • Legal situation: you can request a nota simple, document issued by the Property Registry that indicates who the owner is and any charges or legal limitations that the property may have.

Deposit Agreement

If you have already decided which house you want to buy, you will probably agree with the seller to sign a deposit contract.

A deposit contract is a private agreement whose purpose is to guarantee the sale of the property in exchange for handing over a sum of money as part of the price.

For the signing of this contract, both buyer and seller will agree on a date for its signature, at which time the cheque is handed over or the transfer of the agreed amount is made, in the latter case a receipt must be provided.

This contract will reflect the final price of the sale, as well as the rest of the conditions agreed for the purchase of the house. It must also include the latest date for signing the purchase contract in front of a notary, usually agreed within a month or two, but it depends on the parties.

Purchase contract

The purchase contract is necessary to formalise the transaction between the seller and the buyer. The law establishes that it must be signed in front of a notary, who is also obliged to read the whole contract and explain it to the parties.

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Once the contract has been signed and the remaining amount of the price has been paid (if a deposit contract has been signed), the house becomes the property of the buyer. The notary will notify the relevant land registry of the sale and purchase.

However, both parties are obliged to pay the corresponding taxes.

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Home insurance that adapts to you

Now that you know how to buy a house in Spain, you must always have a good home insurance policy that covers all possible contingencies that may arise.

We help you find the best home insurance to cover any type of damage that may happen to your home and the elements in it.

At BMI Spain we can help you find the home insurance that best suits your needs so that all you have to do is enjoy this wonderful city.

For more information, you can contact us for any of our fears, we will be happy to attend you.