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INTRODUCTION TO SPAIN

Spain is one of the 27 member countries of the European Union and one of the 19 that make up the Euro Zone. Regarding its territory, its 505,370 km2 make Spain the fourth largest country on the European continent and one of the most mountainous with an average altitude of 650 meters above sea level.

 

The country is divided into mainland Spain, the Balearic Islands (Mediterranean Sea), the Canary Islands (Atlantic Ocean), Ceuta and Melilla (Africa). The organization of the territory is based mainly on autonomous communities and provinces, with a total of 17 autonomous communities, 50 provinces and 2 autonomous cities (Ceuta and Melilla), with the total population census of 2016 of almost 46.5 million inhabitants.

Undoubtedly, two of the greatest attractions of Spain abroad are its beaches and its hours of sunshine. The country has more than 4,900 km of coastline and more than 2,500 hours of sunshine a year, in addition to a mild climate for much of the year. Only the Cantabrian coast and the mountainous areas experience less than 2,000 hours of sunshine a year and higher rainfall. Spain is the third most visited country in the world behind France and the US, receiving 75.6 million tourists in 2016, according to data from the World Tourism Organization. These figures indicate that tourism constitutes an important part of the Spanish GDP (16%), as is the construction sector (5.6%).

REAL ESTATE IN SPAIN

Any foreigner can buy and own a property in Spain or other European countries without any problem. There are no limits for non-citizens to buy any kind of property in Spain. According to the statistics of several sources (Ministerio de Fomento y Centro de Información Estadistica del Notariado de España, etc.), there are more than 2 million properties in Spain, owned by foreigners. Around 101,969 properties in Spain are sold to foreigners every year. This equals around of18 % of all the property transactions that occurring in Spain. 42% of these transactions were carried out by non-resident foreigners and 58% by foreigners living in Spain. The most foreign buyers are the buyers form another countries of European Union, but you can find a lot of buyers from another countries as well. British, Moroccans, Russians, Chinese, Argentinians, Switzerland, Ukraine, etc.

 

The only thing that you need to purchase property in Spain is someone, who is able to inform you about all the details regarding the process and the most important thing, you need somebody, who will supervise the entire purchase process. This way you do not make mistakes and the selling process from the start to closing will not last for months. Many documents need to be prepared, translated and followed up. Additionally, you must obtain a NIE (Foreigner Identification Number). You can obtain it on Spanish Consulate in your country or we can do it for you here for a fee.

 

There are also different visa options to obtain a residence if you buy a property or several properties for a value greater than a certain amount. Contact us to inform you what is the exact amount at this moment.

There are only a few remaining countries in Europe that still have available affordable properties. They are Spain, Italy and France. You can still find in these countries plenty of properties for fantastic prices in comparison with many other countries. Portugal is the sample how fast things can change. In Portugal were available many cheap properties in pre-covid era, but because of very convenient tax regime (that is was ultimately changed) and Golden visas (their requirements changed as well), the market went up very fast and today is very difficult find affordable properties in many part of this country.

 

Here you can see some samples, what you can still find in Spain for different budgets:

 

  • Under €100,000 Euro

    • One bedroom apartments 

    • Two bedroom apartments 

    • Three bedroom apartments

    • Small Townhomes

    • Agricultural land

    • Residential land to build 

    • Plenty of other properties in need of reform

  • Starting from 200,000 Euro

    • Smaller apartments in pre-construction

    • Smaller new apartments

    • Big older apartment

    • Small traditional homes

    • Big Townhomes 

  • Starting from 400,000 Euro

    • New luxury apartments

    • Big traditional or country homes

  • Starting from 500,000 Euro

    • Big apartments in pre-construction

    • Big luxury new apartments

    • Big country homes

    • Apartment buildings

    • Luxury villas

    • Mansions

    • Castles

OUR STORY

After living in US for several years and totally life changing during the challenging events in 2020 and 2021, we decided, like many other people, to do some radical changes in our life. We realized the right to travel is not guaranteed and that any government can restrict or even eliminate the travel as we know it in a few seconds. Our goal become to spend more time traveling through Europe, not just through US and for that reason, we decided to purchase one property in Italy and one property in Spain.

We never purchased any property in US online, much less in Europe and now, because of traveling restrictions, we didn't have another other option than to purchase it online, without even seeing it in person. At this point, we didn't have any idea about the purchasing process in Italy or Spain. We were very well aware about risks involved in it, doing all that online only. We started to do some research and established some basic requirements and rules to avoid some of the risks related to our first purchases in Europe, totally online.

 

Here you can see our "List" with some basic requirements and rules to help to mitigate a risk purchasing the first property online in Spain:

OUR LIST

  • The property has to have at least 2 bedrooms. 

  • The property has to have parking.

  • The property has to have nice terrace and great views.

  • The property has to be in a gated community.

  • The property has to have a modern interior.

  • The property has to be in a good shape, not requiring too  much work or renovation. 

  • Our first property in Spain has to be under €100,000 Euro (everything included).

  • The property has to be in Andalusia, Valencia or Murcia.

  • The property has to be close to the beach.

  • The property has to be close to big cities.

  • The property has to be close to international airports.

  • The property has to be in a tourist area, to be easily rented, if we decide in the future to purchase another property.

  • The property has to be in a tourist area, where we can find a management company if we decide to rent it.

  • Find a real estate agency and the real estate agent who have experience with foreign buyer's, speak the language, are willing to defend our interest, who is available to do a virtual showing, negotiate the price and be there for us if we need any help.

Many people don't realize that the advantage to purchase a property in Spain is not just the price, but the annual property taxes and many other costs related to real estate property (condo fees, garbage, gas, electricity, water, Internet, cable, etc.). Today, after we purchased our first property in Spain, we've realized that we would pay 3 or 4 times more for similar property in Florida (and here we are not talking about the difference in quality of construction), 5 or 6 times more for annual property taxes and 4 or 5 times more for the condo association fees.

But let's go back to our story. After months of research and unanswered emails, text and calls form many real estate agents, we were finally able to find and select a few properties and have some real estate agents, that were communicating with us and open to work with us. We were able to select a few real estate attorneys, that were claiming that they have experience to work with foreigners as well. We were able to find and select a few properties, some of them eliminated after we have seen the videos or the Life Video Walk-Troughs that they sent us and we finally decided to purchase 2 bedroom condo on Spanish coast, that fits out criteria.

 

From the start of our purchase journey, we did a lot of mistakes, spent a lot of money on things that we didn't need or did things that were totally useless, spent a lot of extra money choosing wrong banks for international transfers, spent a lot of time because we listen to a wrong advise, etc. The process of purchasing property in Spain is very safe, but if you are purchasing something online or even in person, without somebody defending your interest, a lot of small things can go wrong. In the end it is not a big deal, everything has a solution, but you can spend thousands or ten of thousands of dollars, if you are buying more expensive property, to fix it. It is really not worth it.

 

We learn a lot from our mistakes. We wouldn't use again or recommend to anybody the same real estate agency or the same law office we used during this process. We lost a lot of time and spent extra money due to their lack of experience to work with foreign buyers and poor follow up in case of the law office. They didn't provide us with sufficient information about the process, but in the end we are very happy with our purchase and we are really enjoying our apartment and many trips through Spain and Europe, that we already did. We made a lot of changes in the apartment and purchased some new furniture and still we were able to spend less than €100,000 Euros.

 

Conclusion. We could spend easily €10,000 Euro less, if we had somebody with experience, who could helped us during the process, but we are happy that we were able to successfully closed on our first property in Spain and to have the starting point and base to purchase another one. Right now we are looking for our second property in Spain, in this case it is a country home. We have a place to stay in Spain at this moment, so no rush, but we would like to find the prefect location during next year:-)

If you are planning or decided already to purchase any kind of property in Spain, be sure to contact us, so you have somebody, who have an experience, who can give you a lot of useful information and can help you through the process.

SOME OF THE PROBLEMS YOU WILL PROBABLY ENCOUNTER

You can find some websites online that are offering properties for sale in Spain, but even if you locate a property by yourself, you will find a lot of hurdles and problems related any particular property. Here is a list of just some of the problem you could encounter:

  • Real estate agencies and real estate agents in Spain aren’t regulated by law and anyone can set up a business selling property. That could be one of the reasons of so many problems and complaints regarding agents and real estate agencies.

  • There are many unlicensed, amateur agents operating in Spain (particularly in resort or beach areas), who should be avoided.

  • Avoid using only the seller's real estate agency or real estate agent, who will inevitably defend the estate agent’s interests over yours.

  • Choose and hire always an independent real estate agent, who’s defending your interests only.

  • In Spain exist a little consumer protection, use always somebody, who you know personally or who was recommended to you by somebody, who you trust. 

  • Some real estate agents can increase the price of a house above that agreed with the owner and pocketing the difference.

  • There are no national property listings (MLS) in Spain.

  • Many real estate agents are changing constantly the price of the listing and because of no existence of MLS, you can not see the history of property listing.

  • Commission charged by real estate agencies and real estate agents varies.

  • Properties may be advertised at different prices in different agencies.

  • Many real estate agencies and real estate agents don’t usually work during lunch hours and most are closed on Saturday afternoons and Sundays.

  • To actually see the properties, can take weeks.

  • To confirm the visits and to schedule a showings (or several showings) with the real estate agency, has to be done many days in advance.

  • The real estate agencies are very small and many time is doing the showings just one agent.

  • Very few real estate agencies and real estate agents are doing open houses, so it is very difficult to schedule an appointment to see the property, if there is a high demand or a lot of interest. 

  • Very few real estate agencies and real estate agents are showing the properties to various buyers at the same time, so it is very difficult to schedule an appointment to see the property, if there is a high demand or a lot of interest.  

  • Many real estate agencies are promoting properties owned by banks, funds, etc., without telling you that.

  • Properties owned by banks and funds have usually lower prices, but it can take many months to close on them.

  • Many real estate agencies and real estate agents will tell you that they can not show you the property, specially when the property is vacacional (Some of the excuses: they don't have a key, the owner is living far from the property or that their real estate agency is living far from the property, etc.)

  • Some real estate agencies and developers advertise ‘free’ inspection flights, which you must then pay for if you don’t buy anything.

  • Real estate agencies and real estate agents vary enormously in their efficiency, enthusiasm and professionalism.

  • Some real estate agencies and real estate agents can pressure you into signing contracts and paying deposits quickly, alleging there are queues of other clients waiting to buy the property (which may be true in some cases), but be careful, because you are loosing any negotiation power doing so too soon

  • Many real estate websites don’t show all properties for sale or the latest properties on their books.

  • Many real estates agencies are just selling limited number of properties and are not willing to show you another properties.

  • Many real estates agencies are just local and are not able or willing to show you properties in other area.

  • Many real estates agencies are just local and are not willing to show you properties in other area.

  • Many real estate websites require prior registration to see any detail information regarding the properties.

  • Some real estate agencies and real estate agents are charging extra commission or fees on some extras in addition to the sale price (apart from the normal fees and taxes associated with buying a property).

  • Many real estates agencies and real estate agents are just local and cover many times very small areas.

  • Many sellers don't sign an exclusive listing agreement, that is the reason why many real estate agencies and real estate agents:

  1.  Are selling the same property

  2.  Many properties have no pictures of exterior area of the property.

  3.  Many properties have no the exact address publicly visible.

  • Many real estate agencies and real estate agents don't answer when you care trying to contact them.

  • Many real estate agencies and real estate agents don't want to work with you if you are not present.

  • Many real estate agencies and real estate agents don't work with foreigners.

  • Many real estate agencies and real estate agents have no or very little experience with foreigners.

  • Many real estate agencies, real estate agents, attorneys, solicitors and notaries have no experience with international transfers banking system.

  • Many real estate agencies and real estate agents don't speak your language.

  • Many real estate agencies and real estate agents charge very high commissions.

  • Many real estate agencies and real estate agents don't want to go and make for you a Life Video Tour of the property.

  • Many real estate agencies and real estate agents don't represent your interest, even if they are charging you a buyer's commission.

  • Many properties have no pictures.

  • Many properties have very few pictures.

  • Many properties have very bad pictures.

  • Many properties have no pictures of the view from the property.

  • Many properties have pictures of the view, that are not from the property.

  • Many properties have pictures of the city or any other pictures not related to the property.

  • Many properties have no pictures of the property surroundings.

  • Many properties have rendering pictures instead of real pictures.

  • Many properties have pictures with a big logo over the pictures that not allow you to see anything.

  • Many properties have no pictures of the property floor plan.

  • Many properties have no video.

  • Many real estate agencies and real estate agents are posting properties that are not for sale.

  • Many real estate agencies and real estate agents are posting properties that are sold.

  • Many real estate agencies and real estate agents are posting properties that show pictures from another properties.

  • Many real estate agencies and real estate agents are posting properties that show pictures from various properties in the same listing.

  • Many real estate agencies and real estate agents will be trying to raise the selling price even, if the negotiation already ended and you paid a deposit.

  • We always recommend to use the attorney or solicitor, but many attorneys are charging the foreigners very high fees for any service related to real estate. Don’t pick a lawyer at random, but engage one who has been highly recommended by someone you can trust.

  • Avoid using the estate agent’s lawyer who will inevitably defend the estate agent’s interests over yours.

  • If you decide to use a lawyer, choose an independent lawyer who’s only paid by you to defend your interests.

  • Very few real estate agencies and real estate agents or attorneys (solicitors) or notaries give you a detailed information about the process or all upfront fees estimate.

  • Very little correct information regarding is publicly accessible.

  • Administration is very slow and bureaucracy is a big issue. If you don't have somebody, who knows how it works you could loose months with every single administrative act or procedure. 

  • Many real estate agencies and real estate agents are receiving commissions for referrals and you may therefore not receive independent advice.

  • Very few real estate agencies and real estate agents are able to deliver contracts in your language. All the documents are in local language only.

  • Many real estate agencies and real estate agents tell you that you can rent the property and you could realized later that is not true.

EXPERIENCE OF OTHERS

We spoke with some buyers, who didn't have anyone responsable on the spot when they purchased their property in Spain and their stories are not very appealing. Some of them purchased a property in an area that they don't like, because they didn't see any pictures or video of the property. Some of them purchased properties in bad shape and had to spend a lot of extra money to fix it. Some of them purchased properties with no views, some of them purchased the property in not very appealing area. All this because they didn't have somebody who was able to offer them the option to see more pictures or videos of the surroundings. We were lucky we had somebody, who did the work and made the extra pictures, research and the videos for us, before we made the final decision and make an offer. 

 

OUR EXPERIENCE WITH SOCIAL MEDIA  

Doing research online or contacting people on social media was very confusing. Many contradicting opinions and experiences. Spain has many communities and provinces. Each community or province has different rules and processes. Even if somebody tell you that this is working tis way, in your province it is working totally different.

CLOSING COSTS

A variety of fees are payable when you buy a property in Spain, which usually add a total of around 20% to the purchase price. Most fees are based on the "declared" value of the property, which was traditionally much lower than the actual price paid. However, under the "Ley de Tasas 1989", it’s no longer possible to declare a very low figure and there are severe penalties for gross under-valuation. Local authorities maintain tables to calculate the current fiscal value (valor catastral) of properties and its price (or the actual price paid) which should be declared. Many fees are mentioned without VAT/IVA that is 21%, so you have to count with it to be be added to all the fees.

THE FEES AND COSTS PAYABLE WHEN BUYING A PROPERTY IN SPAIN MAY INCLUDE THE FOLLOWING:

  • Transfer tax (resale properties only).

  • Value added tax (new properties only).

  • Stamp Duty (ADJ - Actos Jurídicos Documentales)

  • Legal document tax (new properties only).

  • Land tax.

  • Local property tax.

  • Retention fee.

  • Notary’s fee and Title Registration.

  • Legal fees.

  • Deed registration fee.

  • Surveyor’s fee (optional).

  • Utility fees.

  • Running costs.

  • Seller's agent fee.

  • Buyer's agent fee.

Most taxes are paid by the buyer, with the exception of land tax (plusvalia) and the selling agent’s fees. However, a contract may state that the buyer is liable for all expenses (todos los gastos), including plusvalia. This is legal, provided the buyer agrees, as the law stipulates simply that expenses will be divided when they aren’t set out in the contract and who pays what fees is often a matter of negotiation. Always ensure that you know exactly what the total fees will be before signing a contract.

TRANSFER TAX

Resale property buyers must pay transfer tax (Impuesto de Transmisiones Patrimoniales/ITP) of a certain percentage. The percentage varies between 7% and 10% depending on the region where the property is situated. The tax is often higher for more expensive properties. Some regions provide a reduction in ITP for first-time buyers, buyers who become permanent residents, buyers with limited annual income, buyers with certain age, buyers buying in specific areas, buyers with more children or disabled buyers. The transfer tax is payable by the buyer.

VALUE ADDED TAX (VAT) - IVA
Value added tax (Impuesto sobre el Valor Añadido/IVA. Value added tax on residential properties is10% and on land and commercial properties is 21% and is payable on properties being sold for the first time, e.g. new builds. The Value added tax is payable by the buyer.

STAMP DUTY (ADJ - Actos Jurídicos Documentales)

Stamp duty is payable for the issue of the legal documents. This is normally around 0.5% of the purchase price, but can be 1.5% in certain regions. The Stamp duty is payable by the buyer.

 

LEGAL DOCUMENT TAX

Legal document tax is a tax on ‘documented legal acts’ (Impuesto sobre Actos Jurídicos Documentados/AJD). The percentage varies between 0.5 % and 1.5 %, depending on the region where the property is situated. The tax is levied on new properties and is payable in addition to VAT. Some regions (e.g. Galicia and Murcia) reduce AJD for first time resident buyers. The Stamp duty is payable by the buyer.

LAND TAX

Land tax (Impuesto Municipal sobre el Incremento del Valor de los Terrenos, usually called plusvalia) is a municipal tax on the increase in the value of land (excluding any buildings), since the last change of ownership. Traditionally, it’s paid by the vendor, as he’s the one who has made the profit, although in some areas it’s common practice for the buyer to pay it. The amount of tax due depends on the population of the municipality in which the land is located and the number of years the vendor has owned the land, and bears no relation to the value of any buildings on the land. Plusvalia is low on modern properties such as apartments and townhouses in urbanizations, where land values have increased little since the properties were built and little land is involved. It can, however, be high if you buy a large plot or a detached house with a few hectares of prime building land which hasn’t changed hands for decades. As taxes vary so widely, it’s impossible to give a simple guide to the amount you might have to pay. If you’re liable for plus valía, you can find out how much it will be before signing a contract by enquiring at the local municipal tax office (recaudación municipal).

LOCAL PROPERTY TAX

Properties in Spain are subject to a local property tax, which is paid regardless of whether the owner permanently resides in the country or not. The tax is between 0.5% and 1.2% of the taxable value. All owners of Spanish properties, including those resident abroad, must submit an annual Spanish tax declaration.

NON RENTAL INCOME TAX

Imputation on rental income is a tax. If you are a non-resident owner of a property located in Spanish territory that you do not rent because you keep it empty or you enjoy using it, you must declare income attribution. The imputation of rents is a performance that the Treasury invents for maintaining an empty property. Consider that any property that is not your habitual residence allows you to obtain an income, a rent for it. If you do not do it, the Treasury does not have to lose the part that corresponds to the return that the property could be generating. That is why you must allocate an income for owning a home even if it is empty. The rent to declare will be 2% of the cadastral value of the property if said value has not been reviewed in the last 10 years or 1.1% if it was reviewed in that period. It is the same regulated income imputation for residents.

NON RESIDENT INCOME TAX

Non-resident income tax (IRNR). The 1.1% - 3% retention is a tax which is payable when a non-resident sells a property in Spain. The buyer of the property is required to retain 1.1% - 3% of the purchase price and deliver it to the tax office. The non-resident seller is able to make a claim to have the 1.1% - 3% returned to them. This is an administrative process. The Tax authority checks whether there are any outstanding taxes payable by the non-resident seller (such as the annual non-resident tax) before returning any funds. If you are purchasing property from Spanish resident, you don't have to pay this fee.

 

NOTARY FEES AND TITLE REGISTRATION

The Spanish government determines the notary fees, the cost of which depends, among other things, on the property’s value and how many pages the sales contract has. In most cases the cost is between 0.5% and 1% and is usually paid by the buyer. The fees for the notary (notario) who officiates at a sale are fixed by law and are based on a sliding scale depending on the sale price, except for when the deed doesn’t include one (i.e. when the property is a gift), when there are fixed fees for each document. If you’re buying a plot in order to build a house, you must pay fees for two deeds; one for the land and another for the building.

 

LEGAL FEES

Legal fees for the conveyancing involved in a sale are usually between 1% to 1.5% of the purchase price for an average property. The actual fee may depend on the work involved. It may be negotiable on "more expensive" properties. Fees, which should be agreed in writing beforehand, are much lower if a lawyer is engaged to vet the sales contract only. Legal fees are payable only after you’ve received the final "escritura pública" after registration at the property registry office (Registro de la Propiedad), although many lawyers demand a pre-payment (provisión de fondos). Engaging a lawyer and paying legal fees is optional, but it’s highly recommended.

DEED REGISTRATION FEES
This is usually between €180 Euro and €500 Euro, although the first amount paid is a deposit and is often over-estimated, so you may receive a small refund.

SURVEYOR'S FEES
Ii is optional. If you employ a surveyor to inspect a building or plot of land, the fee depends on the type of survey, any special requirements and the value of the property or land. A homebuyer’s survey and valuation costs from €500 Euro to €2,000 Euro.

UTILITY FEES

If you buy a new property you must usually pay for electricity, gas and water connections, and the installation of the meters. A builder or developer should provide the cost of connection to services. In resale properties, you pay for the transfers (new contracts), but sometimes the connections are not installed or they are canceled (specially bank owned properties) and you have to pay for the cost of the new connections.

RUNNING COSTS

In addition to the fees associated with buying a property, you should also take into account the running costs. These include local property taxes (rates); annual wealth tax, income tax on deemed letting income and a fiscal representative or tax consultant’s fees; rubbish tax; community fees for a community property; garden and pool maintenance (for a private villa); building and contents insurance; standing charges for utilities (electricity, gas, telephone, water); plus a caretaker’s or management fees if you leave a home empty or let it. Annual running costs usually average around 2 to 4 per cent of the cost of a property.

COMMISSION STRUCTURE

In Spain there is a big difference in commission structure in comparison with another countries. In many countries is the seller only who is paying the whole commission. In Spain the commission is paid by both, the seller and the buyer. The commission amount for each is between 3% and 5%. Total commission amount is between 6% and 10%, but in some cases specially on rural properties it can be as high as 35%!! Our commission is always 3% only. You will not pay any other buyer's commission. Example: if the real estate agency is asking 10% (5% from the seller and 5% from the buyer), we will negotiate the commission with the real estate agency and you will pay only 3% as a buyer.

OUR DECISION AND SOLUTION

We decided to help all the future buyers we can and to create this Property Finder website to achieve this goal. We are already helping some buyers. Our many years of real estate experience from US, dual citizenship and the language knowledge are the key. 

We will make an initial free consultation with you. We will let you now which documents you need. We will send you properties that fits your needs and the websites where you can find properties with the criteria you are looking for. We will help you to make a selection of the right properties that fit your criteria and we will check the properties in person. We will make you a video or Life Video Tour not just of the interior and exterior of the property, but of the surroundings as well. We will check all the documents and supervise the whole purchase process. We can accompany you at the closing.

INTERNATIONAL PROPERTY FINDER

Who is an International Property Finder? What is exactly his role? An International Property finder is a real estate professional or a group of professionals, specialized in International market, who will help you to find an ideal property in another country.

 

Property Finder is:

  • the buyer's eyes

  • working for the buyer, not the vendor

  • minimizing the stress for the buyer

  • saving the time and money of the buyer

  • helping to find properties that are difficult to find

  • helping the buyer avoid a common pitfalls

  • supervising the purchasing process

  • helping to narrow the search

  • helping with the selection of the properties and the final decision

  • facilitating the video tour of the selected properties

THE PROCESS

The process of the purchase in Spain is not the fastest one and can take several months. Below you can find a list of some of the steps.

 The Initial Conversation

This is when you will tell us what kind of property you are looking for, what is your budget and where in Spain you would like to purchase your property.

    

Signature of the Agreement to find the property

We will email you an agreement form to signed it electronically.

Commission Initial Deposit

You will make the initial deposit of the amount of 1,500 Euro + 21% VAT (IVA), or the equivalent exchange rate in US dollars, to our account, that will be discounted from our final commission amount when the purchase is completed.

Documents

We will send you a list of documents to notarize, apostille or translate, that you will need for the purchase.

Property search

We will start our search and will be sending you different properties till you find the your favorites.  

Selection

You will select your favorites properties.

Showings/Viewings

We will go to see the selected properties in person to make a video or Life Video Walk Through.

Presenting an offer

When you choose the final property, you need to sign an offer and send it to the seller.

The Initial Deposit

At the same time you submit the offer you have to make a wire transfer with the initial deposit of the property (usually 10%).

Proof of transfer

A Proof of bank transfer of the initial deposit must accompany the offer.

Negotiation

If the seller does not accept your offer or make a counter offer, we negotiate the price until we reach an agreement.

Acceptance of the offer

At the moment the seller accepts the offer, he has to sign it and send a copy to the buyer.

Removal of the property off the market

The seller or the seller's agent will remove the property off the market.

Attorney review

If you don't have any real estate attorney, we can recommend you some attorneys and he/she can start the reviewing process of the property.

     

Final payment

As soon as the notary has all the documents of the two parties, the date of the signature (the closing) will be established and you as a buyer have to make the final wire transfer.

Proof of the wire transfer

A Proof of the bank wire transfer for the final payment must be sent to the Notary's office.

Closing - The buyer and the seller go in person to sign the purchase/sale documents before the Notary where you will receive the keys.

COMMISSION STRUCTURE

In Spain there is a big difference in commission structure in comparison with other countries. In many countries is the seller only, who is paying the whole commission. In Spain the commission is paid by both, the seller and the buyer. The commission amount for each is between 3% and 5%. Total commission amount is between 6% and 10%, but in some cases specially on rural properties it can be as high as 35%!!! Our commission is always 3% only. You will not pay any other buyer's commission. Example: if the real estate agency is asking 10% (5% from the seller and 5% from the buyer), we will negotiate the commission with the real estate agency and you will pay only 3% as a buyer.

 

BUYER'S COMMISSION

If you are buying a property in Spain with us, our commission fee is €3,000 Euro + 21% VAT (IVA), for the property with a value up to €100,000 Euro. If you are interested to purchase a property with a value over €100,000 Euro with us, then you will be paying us a 3% commission fee + 21% VAT (IVA) of the commission.

 

SELLER'S COMMISSION

If you are selling a property in Spain with us, our commission fee is €3,000 Euro + 21% VAT (IVA), for the property with a value up to €100,000 Euro. If you are interested on us selling your property with a value over €100,000 Euro, you will be paying a 3% commission fee + 21% VAT (IVA) of the commission.

 

RENTAL COMMISSION

We are doing rentals as well, depending of the area. If you are interested to find a rental or you already found one and you would like us to make a Life Video Tour, or you are interested on us to take care of the paperwork or supervise the process, we are charging a commission fee of 1 month rental amount. We will start working after you sign an agreement form and send us a deposit amount of €900 Euro + 21% VAT (IVA).

 

WHAT IS INCLUDED IN OUR COMMISSION

Free initial phone or video conference consultation
Search of the property

Finding the right property

Helping you to select the properties
Visit of the selected the properties in person (up to 5 properties)
Life Video tour or video recording of the selected properties (up to 5 properties)
Your document revisions

Purchasing process supervision
Closing assistance in person

Free key holding service during first 6 months

EXTRA VISITS 

You have included the visits in person up to 5 properties. If you need us to visit more properties, we are charging €120 Euro + 21% VAT (IVA) per any additional property visit.

 

EXTRA LIFE VIDEO TOURS  OR VIDEO RECORDINGS

You have included Life Video Tours or Video recordings in person up to 5 properties. If you need us to make additional Life Video Tour or Video recordings, we are charging €80 Euro + 21% VAT (IVA) per any additional property.

NIE

Additionally, you must obtain a NIE (Foreigner Identification Number). We can take care of it and obtain your NIE for a €120 Euro fee + 21% VAT (IVA).

 

KEY HOLDING, SUPERVISION, EMERGENCY

If you decide to keep the property only for your personal use (you, your family or friends), we can hold the keys of your property during your absence for cases of emergency, and checking periodically your property making sure everything is ok for a €99 Euro fee + 21% VAT (IVA) per month. The contract agreement in this case is annual.

 

FULL PROPERTY MANAGEMENT AND SHORT TERM RENTALS

If you decide to rent your property short term, we can take care of the rental process for a 30% fee of the monthly rental amount including the cleaning. The contract agreement in this case is annual.

CLEANING

If you need a cleaning service, we are charging a fee of €90 Euro + 21% VAT (IVA) for each cleaning or you can sign with us an annual contract agreement (minimum 12 cleaning per year) for €70 Euro + 21% VAT (IVA) per cleaning.

 

RENOVATION (DAILY SUPERVISION)

If you decided to purchase a property to restore or you need to make some addition, reparations, changes, purchase a furniture, etc, we can take care of the supervision process for a 10% and 15% fee of the whole renovation budget amount.
 

POWER OF ATTORNEY

If you are interested in giving us a Power of Attorney to handle the purchase process and related in your absence, we are charging a €400 Euro fee + 21% VAT (IVA).

ASSISTANCE WITH NEW UTILITY CONNECTIONS

If your property has no utility connections and you are interested to connect them, we are charging a €500 Euro fee + 21% VAT (IVA). If you need just some of them (water, gas, electricity, Internet, Cable), the fee is €150 Euro + 21% VAT (IVA) per each.

ASSISTANCE WITH UTILITY TRANSFERS

If your property has utility connections and you are interested to transfer them to your name, we are charging a €300 Euro fee + 21% VAT (IVA). f you need just some of them (water, gas, electricity, Internet, Cable), the fee is €90 Euro + 21% VAT (IVA) per each.

INTERPRET AND TRANSLATE SERVICES IN PERSON

If you are interested to translate or interpret any meeting in person we are charging a €90 + 21% VAT (IVA) per hour. 

 

INTERPRET AND TRANSLATE SERVICES ONLINE

If you are interested to translate or interpret any meeting online, we are charging a €70 + 21% VAT (IVA) per hour.

KEY HOLDING

If the owner is a foreigner or a person, who is not living in Spain permanently, there is an obligation, that someone (normally a property manager), who is living in the country, has the key and access to the property at all times.The cost of this service can be between 300 - 450 Euros, depending on what is included. We are offering tenure for 6 months free for all our clients and then we charge 29 Euros per month, paid annually.

OTHER SERVICES

If you are interested services not mentioned, feel free to contact us for the availability and our fees.

OUR GOAL AND MISSION

Our mission is to enrich lives by allowing more foreigners to enjoy property ownership in Spain.

OUR ADVICE

If you are buying online be sure to have somebody, who will become your eyes and ears.

If you are buying in person, find somebody with a personal experience, who can supervise the whole sale process.

FREQUENTLY ASKED QUESTIONS

We will be publishing here some of questions that we are receiving very often from the buyers often.

 

I hear that in some areas of Spain is a problem with OCUPAS?

Yes, in some areas like for example Cataluna, the police is not enforcing the law in case that somebody enter your property without your permit when property vacant, and the owner not report it immediately. That is the reason that we always recommend some specific measures. Purchase property only in gated communities, install alarm, install cameras, have a property management, neighbor or friend, who is checking the property regularly.   

Can a foreigner obtain a mortgage to purchase a property in Spain?

Legally, any bank can grant a loan to any citizen, regardless of the location of the bank and the citizen's residence.

However, in the case of mortgage loans, there is a particular feature that, on a practical level, "expels" banks that are not resident in Spain. A mortgage loan consists of a loan and a mortgage that is taken out on a home (or a property in general); and as this home is located in Spain, the mortgage must be registered in the Land Registry where the property is located.

In the event of non-payment of the loan, a foreclosure procedure is initiated, which could lead to the public auction of the property that serves as a guarantee for the loan. And this legal procedure must be carried out in the jurisdiction where the home is located. For example, if a US citizen buys a home in Malaga, and does not ful fill his payment commitments, the bank must initiate a legal claim in Malaga, not in the United States.

The vast majority of banks do not have a system for handling this type of action, so they de facto rule out granting mortgage loans outside their country. Obviously, if the bank has offices in Spain, it will have no problem in granting a mortgage. Having said that, it is possible for the bank in the country of origin (following the example of a British bank) to grant a mortgage loan to a British citizen to buy a home in Spain, but mortgaging any other home that this citizen owns in the United Kingdom.  

The best is to make a consultation with various banks and lenders to find the best solution for the buyer.

I have some questions

If you have any other question, you may schedule a conference call through WhatsApp or send us an email.

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