Our Buyers Guide
We strongly recommend using a conveyancer to check all the documentation is legal and correct to ensure the property is in good order. You can nominate your own conveyancer or alternatively we can recommend a vetted cost-effective independent conveyancer who speaks your language.
Conveyancing is simply the legal transfer of a property from one owner to another. The process generally requires an administrative representative who acts on behalf of the buyer to ensure their client receives the title deeds to the property and the land it sits on.
Conveyancing encapsulates the entirety of the legal and administrative work required to confirm a property purchase is valid under Spanish law. Our independent legal partners deliver this entire process on your behalf saving you time and money not to mention all the associated stress and hassle.
We strongly advise you to instruct legal representation to carry out all the legal and tax due diligence on your property purchase.
The service typically includes;
- Notary appointment preparation
- Meeting with the developer’s solicitor
- Land registry check
- Translation at the notary (Foreign Nationals)
- Transfer of all utility contracts
- Fiscal representation for the purchase
- Arrangement of the purchase tax payments
- Arrangements of Notary & Land Registry payments
- Collection of Title Deeds from the Notary
- Registration of the property at Land Registry office
Número de Identificación de Extranjero (NIE)
The Número de Identificación de Extranjero (NIE) is a legal requirement and is a unique identification number to enable foreign nationals to conduct tax and legal affairs in Spain, including property ownership.
It is assigned by the Spanish National Police to foreign nationals who do not have Spanish citizenship. 1st Casa through its professional connections can help organise this for you.
Contact us for further information.
Power of Attorney (POA) – Spain or Overseas
A power of attorney is a mandate in writing which is signed off officially by a public notary. It is executed as a deed by the donor (person authorising the power of attorney) in favour of a third party (attorney).
A Spanish power of attorney normally enables the donor broad powers to deal with each specific transaction. As an example, a power of attorney for the purchase of property will often include clauses allowing the attorney to open, close and operate bank accounts, set up direct debits, make payments for the account, arrange utility contracts and payments, pay taxes, submit forms, and send and receive notifications to and from different authorities.
A POA is not a legal requirement, however if you are a non-resident and would like to limit your travelling to Spain for processing documentation then your POA can do this on your behalf. There are 2 options to obtain a POA.
If you are in Spain, you can organise this through a local notary alternatively this can be arranged through a local notary back in your home country.
Contact us today if you require this service.
Spanish Legal Will
During times of bereavement your family and friends can go through an incredible amount of stress and pain. If you own a property in Spain, it is highly recommended to make a Spanish will.
This will save the beneficiaries of your estate the time, money and distress that may be involved in administering your estate in Spain.
Your legal WILL should be executed as soon as you complete your property purchase. Your lawyer will help draft and execute your WILL to make sure you fully protect your Estate.
Fiscal
Do I need a Bank Account when I buy in Spain?
Spanish Bank Account
Non-resident clients looking to buy a property in Spain will need to use a Spanish bank account for money laundering purposes.
You will require the following documents to do so,
- NIE number(s) and or a copy of your passport(s)
- Proof of your current main residence.
1st Casa and its partners can recommend a bank and help in the process involved with opening the account.
Contact us for further information.
Finance
Should you be looking to finance your Spanish property purchase our advice would be to compare your options.
It may be more cost effective to release equity against your assets in your home country and compare this against the cost of finance in Spain.
We work with a selection of independent mortgage brokers who will review your financial position and requirements. They will research the Spanish mortgage marketplace on your behalf and obtain the most attractive deals. Mortgage brokers in Spain typically charge around 1% of the mortgage amount, however this could save you 10’s of thousands or euros during the mortgage term.
Finance on new builds can only be confirmed when the property has been built and a professional valuation has been carried out, however an agreement in principle can initially be sought at outset to give you piece of mind that you will be able to proceed with your purchase.
Standard mortgage terms
2024 Interest Rate Predictions
Between 3.5% – 4.5%
Non-Resident Standard Mortgage Terms
Maximum Loan to Value = 70%
Maximum Term 25 years or up to the age of 75
Fixed or Variable Rates
Typical Spanish mortgage costs & fees
Some banks will add these costs and fees to your mortgage however they will not allow the total amount of borrowing to go over the maximum loan to value percentage.
Bank Arrangement Fee
Between 0.5% – 1.5% of the loan amount
Property Valuation Fee
Typically, between €300 – €500
Taxes
Taxes are advised on application.
Legal Fee
Mortgage legal fees = €600
Notary Fee
The Notary fee is generally around = €900
Life Insurance
Life insurance premiums vary depending on age, health, and term of policy.
Standard documentation required
| Document | Self-Employed | Employed |
| Passport or National Identity Document (DNI) | YES | YES |
| N.I.E. (foreign residents Spanish tax number) | YES | YES |
| Tax Declaration (last 2 years) P60 or Return | YES | YES |
| Last 3 Salary Pay Slips | N/A | YES |
| Proof of income tax payments made during the current financial year and declaration of assets | YES | N/A |
| Credit Report (Experian) | YES | YES |
| Letter from accountant | YES | N/A |
| Last 6 month’s bank statements from all accounts (i.e. current, savings or investments) | YES | YES |
| Annual Statement of account for the last 2 years (balance sheet, profit and loss account) | YES | N/A |
| Contract of employment or letter from your company confirming employment and your income | N/A | YES |
| Current mortgage(s) latest statement | YES | YES |
| Current property rental agreement | YES | YES |
| Proof of other income i.e. rental property, investments etc | YES | YES |
Property Purchase Taxes
All new build properties in the Murcia (Costa Calida), Andalucia (Costa Del Sol) and Valencia (Costa Blanca) regions are liable for the following taxes.
Murcia & Valencia Regions
10% – IVA (VAT)
1.5% – AJD (Stamp Duty)
Andalucia Region
10% – IVA (VAT)
1.2% – AJD (Stamp Duty)
Ongoing tax requirements
As a non-resident and an owner of a property in Spain you are required to submit an annual tax return called a Modelo 210. Your tax adviser can help you with this to avoid any late penalties!
Foreign Currency Exchange
When buying property outside of the euro zone there will be a requirement to convert your home currency into euros. This is another area where you can save money. The national Banks usually have a much poorer conversation rate plus add 1-3% for transfer charges.
Save thousands and obtain the best exchange rate with no transfer charges by using a specialist foreign currency exchange company. Our partners focus on providing you with the tools to maximize money transfers. They monitor the rates on your behalf and work closely with you to ensure transfers are timed perfectly. They recognise the importance of a personal and transparent service. By providing continuity and consistency of service, they can establish a clear understanding of your requirements to ensure you retain absolute control in getting the best deal. Whether you are converting money on a regular basis or for a property purchase it is always in your interest to use a specialist foreign currency exchange company.
Cost saving example on 100,000 (GBP) to euro.
Standard Bank Rate 1.13 = €113,000 – €1,000 transfer fees = €112,000
Foreign Exchange Company Rate 1.15 = €115,000
Saving you = €3,000 per 100,000 (GBP)
1st Casa collaborate with a selection of Foreign Currency Exchange specialists who offer a free consultation service.
Removals:
From a few items to the complete contents of your home our removal partners have you covered. Should you require temporary storage they can supply this service. By using our tried and tested professionals they will deliver all your personal items, efficiently, secure and cost effectively.
Contact us for further information.
There is a selection of companies in Spain that provide a variety of Health Insurance products catered to your health requirements.
Each company has slightly different policies however they do not cover everything. Therefore, it is important to discuss your medical and health insurance requirements to make sure you have the right contract for your individual needs.
Some insurers will cover the whole family as a package which could include younger children and other relatives. Most policies are paid on an annual basis however sometimes they can be paid by a monthly or quarterly direct debit.
Private Medical Insurance will give you access to some of the best private hospitals and private Doctors in your area who will speak your native language and treat you quickly.
As with all medical and healthcare insurance it is always advisable to seek professional help.
1st Casa work with a variety of healthcare companies who offer a free consultation.
Contact us for further information.
There are a variety of insurances that may be required in Spain such as, Health, Life, Home, Car and Pet insurance, 1st Casa collaborates with several reputable insurance brokers and companies.
Let us know your requirements and we will ask them to contact you.
Contact us for further information.
Most of the new build homes in Spain are unfurnished. Obviously, you can dress your home to your required standards however there is the option of using a specialist company who offer furniture packs from the most basic to high end quality.
This will save you money and a significant amount of time.
Let us know if this is your preferred choice, we work with a selection of companies who offer this service.
Contact us for further information.