There are no such naive people who believe that it is enough to have the necessary funds to buy real estate abroad. Let’s put it this way: this condition is obligatory, but not only one. It is equally important to know the legislation of the country where the transaction will be made, as well as to be aware of the legal subtleties.
Spain is among the most popular among foreigners. Even now lots of people want to buy real estate in Spain. Spanish legislation cannot be called confusing, although it is not simple. Its thorough elaboration should be attributed to the advantages, because a careful study of Spanish laws (and this can be done in advance) allows you to feel confident when making a transaction.
Choose a property
No one dares to buy property in another country blindly. No computer technology, no videos can replace direct acquaintance. Therefore, the first step when buying is a trip to Spain. Now there are dozens of companies that specialize in organizing such trips. The conditions they offer are quite reasonable. Meeting, accommodation, preparation of the stay program – all this is taken over by the organizing company. It studies in advance the request of the buyer, as well as the requirements that the buyer imposes on the future property. Usually, 30-50 properties are selected for a possible purchase, and detailed information is usually collected about it.
Check real estate
Once you have decided what kind of real estate you are going to buy, you need to do a thorough check of this property. You should study the document (Registro de la Propiedad) by yourself or with the help of a lawyer to find out whether the property really belongs to the seller, whether it is free of debt, and whether its official description corresponds to what you were told during the negotiations (so that you don’t discover that the area of the house you bought is actually less than 10 m2).
Real estate registration
A contract must be concluded between the seller and the buyer even before the transaction passes all the required registration. Usually, the buyer pays 10-20% of the value of the property as collateral and does this by means of a check certified by the bank. But if the buyer does not have such money, then the amount of EUR 3,000-EUR 5,000 is sufficient. By law, the buyer is given 5-10 working days to transfer the amount missing up to the agreed amount of collateral. It is important to note that the deadline for the completion of the transaction should not exceed 45 days from the date of paying the deposit in full.
Open a bank account
After concluding a preliminary agreement, the buyer (a non-resident of Spain) must issue a so-called tax identification number (NIE). It is required for signing a notarial deed of sale, that is, a bill of sale. Without NIE, neither signing nor registration of a bill of sale is possible. So, a preliminary agreement has been concluded, that is, the real estate is reserved, the identification number has been received. Now you can open an account in the name of the buyer. According to Spanish law, it is from this account that all payments related to the purchase of a property should be made. In addition, insurance, taxes, utility bills will be paid from this account in the future, mortgage payments will be made (if the transaction is carried out by a mortgage).
Get a power of attorney
In order for the company to carry out actions in your interests, it is necessary to issue a notarized power of attorney to it. The presence of such a document will allow your agent to represent your interests in government agencies, sign contracts for the provision of utilities, make current payments from a special settlement account, issue an insurance policy for purchased real estate, open mortgage lending. The most important thing is that such a power of attorney will allow the company to purchase a property in your name.
Closing a transaction
In the event that (as we have already mentioned) the buyer does not have the 10-20% that make up the amount of the deposit at the conclusion of the preliminary agreement, the first thing he must do is transfer the missing funds. This is possible upon returning from a study trip. If the purchase is carried out with the help of a mortgage loan, it is necessary to evaluate the object and prepare a certificate on this basis, where the final amount of the mortgage will be noted.
Sign a bill of sale
On a pre-appointed day, the company that has received a power of attorney to conduct business signs a bill of sale on behalf of the buyer. Of course, the contract can be signed by the buyer himself. According to Spanish law, the transfer of property must be certified by a notary. The purchase case is transferred to the buyer (or his proxy) only after the notary has read it. The consent of the parties allows to complete the process. This requires the presence of documents certifying the identity of the parties to the contract or confirming power of attorney, in addition, accurate data about the seller (a specially filled out form with which all investments are reported to the Central Registration Authority), payment information from the buyer. The buyer and seller sign the bill of sale, the notary signs below. After that, it’s time to pay taxes.
Our assistance in buying real estate in Spain
Are you interested in property in Spain? Look for it on Spain-Real.Estate website. Here you will find only the best proposals from famous developers of the UAE. For more information about buying real estate in Spain, please contact the company’s agent.
