Every country is a custom. We don’t even argue with this phrase anymore, open borders, transportation accessibility, cheaper airline tickets than just a few dozen years ago have made us travel more and more willingly.
We experience on our own skin, ze. every country is a custom, that every country is more or less cultural differences. It is worth remembering that these are also differences in law. Especially when it involves a planned investment. In Spain, a certain investment is real estate.
Why buy an apartment on the Baltic with an artificially inflated price, where the season is much shorter and the Baltic itself….
Costa Blanca. This is Where We Welcome You.
It’s worth buying property in Spain especially apartments on the Costa Blanca, but be sure to do it wisely. A law firm from Spain will ensure the safety of the transaction, of course, such a service costs money, but it is little money in relation to the price for the property and the risk that you could lose your money.
We want this process to be safe therefore we will concretely and factually show why in Spain almost every buyer has a lawyer and what are the differences in the process of buying a property in Poland (by a citizen) and in Spain by a non-resident.
To begin with, we want to tell you how the procedure looks like if you decide to go through the purchase process yourself:
Documents
- We start by signing a reservation contract at the real estate agency, in this contract there is preliminary information about the property we have chosen (such as the address, sometimes there is the ¨Referencia catastral´ number and the account number for paying the down payment/deposit, the final date when the deed should be signed.
- In order to buy a property in Spain, it is necessary to have an N.I.E number (first you need to discuss through an online form for an appointment at the police(waiting time for an appointment is about 1.5 months) and then with a set of documents we go and get an N.I.E number. It’s best to go with an interpreter if no one involved speaks Spanish, otherwise there’s a good chance we’ll be turned away-then we request a new date again).
- You also need a Spanish bank account. (Once the property is purchased, institutions such as. Ibedrola, Hidraqua, Taxes-SUMA, themselves charge consumption(invoices) from our account). Therefore, you need to discuss an appointment to the bank (about 1 week you have to wait for an appointment) and come on the date they set with a set of documents to open an account.
- Next, you need to check whether there are any debts on the property, such as for electricity for water or taxes. In Spain, debt from these institutions does not drag on a person, but is attached to the property, and as a result, you can buy an apartment with a lot of debt and problems.
- It is necessary to check whether the previous owners did not add something without notification to the office, the so-called N.S., if the terrace is built, a swimming pool was created, they changed the fence by moving it even a little – not in accordance with the maps, unfortunately we, unaware of this, as new owners can receive a financial penalty.
- Also on the buyer’s side is to verify that the seller has 100% rights to the property in connection with this, you need to get the owner’s deed and Energy Certificate from the selling agency.
7. it is necessary to create and sign with the seller (or his lawyer, who has the power of attorney POA – which also need to be checked) a sales contract in which there will be paragraphs, what if the seller will change his mind, what happens to the down payment of the buyer in case he does not arrive and sign the deed, and many other issues that are not regulated in the reservation agreement.
8. notary calculates tax fees and costs – at the time of signing the deed(there is no way he will do it before) coming to sign the deed ( of course, it is only in Spanish) you need to have prepared a TICK for the seller with the exact amount to be received by the seller + prepared transfer receipts for taxes and costs for the notary.
Honestly, I don’t know if we, as foreigners unfamiliar with taxes, are able to do it ourselves without mistakes…. risky.
9. then after signing the deed, you need to rewrite the water and electricity (maybe also the Internet or security and alarm service if it was in the property you bought), that is, to each institution you need to discuss a date and with a set of documents come and sign new contracts.
When buying a new property The story is similar, you also need to check whether the developer does not already have a loan on the property, whether he has signed an AFO with a notary and whether he has received all the documents from the office – whether the property is ready for sale in terms of documentation, here the notary does not have as much responsibility as in Poland.
Necessary issues before purchase include:
– Legal verification of the reservation agreement and the contract with the developer
( The most important thing is the Spanish language, very often the English version does not coincide with the Spanish version…)
– Check whether the developer has bank guarantees and, very importantly, LICENSES, whether they are current and complete.
(such original document should be delivered to the buyer after signing the contract and in case of bankruptcy of the developer with this document we can claim our so far paid funds from the bank)
-delivering insurance and guarantees from the developer.
– Signing of all utility contracts to the new owner after signing the property deed.
-Changing the fees for Community Communities and Local Tax to the new owner and arranging for direct debits.
– Registration of title deeds in the Land Registry and collection after registration.
-establishing a bank account
Buying property in Spain is a real adventure and a clash with other customs, regulations and habits, which is why it is so important to have a lawyer overseeing our affairs. Buying an apartment or house in Spain is supposed to be a pleasure and a good investment.
