Buying a property in Spain is an exciting adventure. Once you have found the home of your dreams, you naturally want to enjoy it as soon as possible. But what are the exact steps? Below, we guide you through the complete purchasing process, distinguishing between buying resales and new build developments.
Step 1: The Sales Agreement
RESALE PROPERTIES
When buying a resale, a private sales contract is signed (known as “Contrato de Compraventa” or “Contrato de Arras”). This document outlines the conditions and requires a deposit. This deposit is crucial: it makes the contract binding and removes the property from the market, ensuring the seller cannot sell it to anyone else while we prepare the final deed.
NEW BUILD DEVELOPMENTS
For new projects, the developer typically requires a deposit upon signing the reservation document. Payment schedules vary by project:
- Reservation: Usually between €6,000 and €10,000.
- Stage Payments: You typically pay 40% to 50% (+VAT) in installments.
- Example structure: €10,000 reservation, followed by 20% at contract signature, 15% upon completion of structures, and 15% when the property is watertight. The remaining balance is paid at the notary.
Step 2: The Notary Deed
RESALE PROPERTIES
The final step is the “Escritura Pública,” signed before a Notary. This marks the official transfer of ownership. Lawyers verify all legal documents and ensure there are no outstanding debts. Once signed, the seller receives the balance, and you receive the keys to your new life in Spain. The property is then registered in the Land Registry.
NEW BUILD DEVELOPMENTS
Before the notary, an inspection and key handover take place. Then, the deed is signed, and the final payment is made.
- Important Note: Sometimes, utility connections (water/electricity) occur after the transfer, so the property might not have active supplies immediately upon signing
Additional Considerations
FOR RESALES
- Mortgage: Start early. Spanish banks can take up to 3 months to process applications.
- Inspection: Always inspect the property before the notary appointment to ensure it matches the agreement.
FOR NEW BUILDS
- Mortgage: Banks only grant mortgages when the property is ready for occupation (as they need to value the finished build).
- Permits: Verify the developer holds all necessary licenses.
- Guarantees: New builds come with standard warranties: 10 years for structural defects, 3 years for installations, and 1 year for finishes.
- Bank Guarantee: Essential. Only buy off-plan if a bank guarantee protects your stage payments.
Understanding ITP (Transfer Tax)
What is ITP?
The “Impuesto sobre Transmisiones Patrimoniales” (ITP) is the tax paid when buying a second-hand property in Spain. It applies to the transfer of assets between individuals.
How and When to Pay
You have 30 business days from signing the notary deed to settle this tax. The form (“Modelo 600”) must be submitted to the relevant tax authority along with proof of payment. Late filing incurs interest penalties. Your lawyer or tax representative will handle this for you.
Regional rates (2025)
At Immo Costamar, we operate across three autonomous regions, each with its own rate:
- Comunidad Valenciana (Costa Blanca): 10% general rate. (Increases to 11% for properties over €1,000,000).
- Comunidad Murcia (Costa Cálida): 8% general rate.
- Comunidad Andalucía (Costa Almería/Sol): 7% general rate.
Exceptions
Exceptions exist for specific cases (age, social housing, large families, permanent residence), which may allow for reduced rates.
IMPORTANT NOTE FOR NEW BUILDS: When buying a newly built property, you do not pay ITP. Instead, you pay VAT (IVA), which is fixed at 10% across all of mainland Spain.
DISCOVERY TRIP
Why rely on photos when you can experience it yourself? Starting from your home in Belgium, we organize a complete 3-day visit to the Costa Blanca.
What is included?
- Full Logistics: Flights, airport shuttles, hotel accommodation, and dining.
- Tailored Visits: We only show you properties that match your specific criteria.
- Local Immersion: Discover the region, the surroundings, and the lifestyle.
The Immo CostaMar Difference: We don’t just show you houses; we introduce you to your future community. Meet our clients who are already settled here, hear about their experiences first-hand, and see the quality of our service through their eyes.
No empty promises. We have been listening and acting for our clients for over 50 years.
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