Spain has long been a dream destination for investors or property buyers, whether you're looking for a vacation home or planning to relocate permanently. While the process of buying property in Spain is relatively straightforward, there are essential documents you'll need to ensure a smooth and legal transaction. In this blog, we'll guide you through the key documents required when buying property in Spain.
Spain's legal framework is designed to protect both buyers and sellers, but it can be complex, especially for those unfamiliar with its intricacies. In this guide, we will explore the essential legal documents that property buyers in Spain should be aware of, shedding light on the roles these documents play in safeguarding your interests and ensuring a successful property acquisition. Whether you're considering a holiday home, an investment property, or a permanent residence, this information will empower you to make informed decisions and enjoy your Spanish property with confidence.
Before you start your property hunt, you must obtain a NIE (Número de Identificación de Extranjero) number. This is a unique identification number for foreigners in Spain and is essential for any financial transaction, including property purchases. You can apply for an NIE number at a local police station or Spanish consulate in your home country.
As a foreigner buying property in Spain, you'll need to provide a valid passport or national ID card.
The purchase contract, also known as "Contrato de Arras," is a legally binding document that outlines the terms and conditions of the property sale. It includes details such as the property's description, price, payment schedule, and the expected closing date. This contract is signed by both the buyer and the seller and typically includes a deposit, which is often 10% of the property's price.
Once the purchase contract is signed, the property title deed, or "Escritura Pública," is drawn up by a Spanish notary. This document officially transfers ownership of the property from the seller to the buyer. Make sure to review the deed carefully to ensure all details are accurate before signing it.
Before finalizing the purchase, obtain a property registry certificate, also known as a "Nota Simple." This document provides detailed information about the property, including its ownership status, any encumbrances or liens, and its legal standing. It's crucial to confirm that the seller is indeed the property's legal owner.
You'll need to provide evidence of your financial transactions, such as bank statements or proof of wire transfers, to show that you've paid for the property as per the purchase contract.
You'll need to provide proof that any outstanding property-related taxes (e.g., property transfer tax or municipal property tax) have been paid up to the date of purchase.
In Spain, it's mandatory for sellers to obtain an Energy Efficiency Certificate for the property, known as "Certificado de Eficiencia Energética." This certificate rates the property's energy efficiency and helps potential buyers make informed decisions regarding heating and cooling costs.
In some cases, your lender may request a property valuation report to assess the property's value. This report is usually carried out by a licensed appraiser and is required to secure a mortgage.
To facilitate the payment of property-related expenses, it's advisable to open a Spanish bank account. This will make it easier to pay taxes, utilities, and other ongoing costs associated with your new property.
VicoVida collaborates with trusted local partners specializing in legal and financial services. Among our esteemed partners, we are proud to introduce Pelicer & Heredia, a distinguished law firm based in Alicante. Their expertise lies in delivering exceptional guidance to individuals from around the world with vested interests in Spain. Pelicer & Heredia offer comprehensive services that encompass global insights, covering areas such as investment, taxation, and immigration. Additionally, their expert team provides specialized advice on intricacies that demand innovative and sophisticated solutions. What sets them apart is the multidisciplinary approach they employ, often led by one or more experienced partners. This approach ensures that they can maintain close and personalized communication with you throughout your journey.
Our international team of specialists can help you with all the documents above to make sure that you make informed decisions and you feel safe investing in your dream property.
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