Spanish Buying Process

With a long tradition of overseas property buyers, the Spanish market has a long line of what people need and want: from the busy city life to long stretches of beaches to the fresh air of the country. Spain is also a great place for older people to retire to. But just because it is a good way for investment, it doesn’t mean that Spain is thriving without any kinds of problems.

Spain has a mortgage market that is very active. More than two hundred local banks have some loans to give to investors. Mortgage options differ immensely from bank to bank but Spanish property law says that one can borrow at least 70% of the property value. Most lenders also will not lend you money which is three times your income, but then there are few banks who would lend you with a slightly higher amount. As in most countries, lenders prefer borrows with stable income.

The first thing that you will have to do to buy a property in Spain is to first get an NE number (a taxation identification number), an important thing to accomplish because this is very crucial in buying properties in Spain. Local solicitors in the country can aid you in acquiring one but you must find a solicitor which is trustworthy and has your best interest at heart. Be careful that you won’t get ripped off.

After finding the right property for yourself, sign a “reservation agreement”, and then give a fee, at least 1% or 2% of the property value. The seller will take out the property from the market, and the solicitor can now begin with all the formalities in purchasing a property. Once everything is clear, both parties need to sign a contract on sale. After signing, it is required that you give a deposit of 10%.

After all the formalities have been made, both parties must go to the public notary’s office to sign the finalized contract. And then the deed is now transferred to the owner of the property.

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Spanish Buying Process

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