First, let’s ask a question – can foreigners buy real estate in Spain?

Yes, certainly.

Is it a complicated process?

Acquiring real property, irrespective of where a given real property is located, requires a careful preparation – selection of the location, examining its legal status and technical condition. In Spain, like in Poland, real property sale and purchase transactions are usually conducted in several stages.

The first and essential step is obtaining a foreigner identification number. In order to purchase real property in Spain it is also necessary to have a bank account in this country. The subsequent phase is signing a reservation agreement and paying a reservation fee, after which a preliminary agreement is signed and a down payment paid (the amount of the down payment constitutes as a standard 10% of the value of the real property). All these activities lead to the last, decisive stag e, which is the conclusion of a sale and purchase agreement for the real property before the notary public, making an entry in the real property register and finally – regulating all due tax liabilities connected with acquisition of the real property in Spain.

How can we help?

Most of all, we are ready to render legal support in conducting a safe transaction of real estate acquisition in Spain.

We will verify the legal status of the selected real property, make sure that it is not encumbered by mortgage and other limited rights in property. We will check whether or not the current owner is authorized to sell it, whether there are tax arrears or other non-regulated fees connected with the real property. We will also determine if the property was built in accordance with the local zoning plan (there were cases in which beautiful residences constructed along the shoreline were subject to a demolition order). Our Clients may be sure that we will verify such documents as: the building permit, occupancy permit for the premises, renting licenses or the statutes of the housing community (which may contain detailed regulations regarding the fees for the benefit of the housing community or limitations in the development of the real property).

When all the initial arrangements have been completed successfully, we will prepare a detailed plan for the purchase of the real property and explain its further stages.

We will assist our Clients during the compiling of the loan documentation and in the contacts with the bank for the purposes of obtaining a mortgage loan. We will verify the loan agreement and documentation.

We will thoroughly analyze the content of the reservation or preliminary agreement, in particular these provisions which refer to payments, security and contractual penalties. We will point out potential threats and propose safe solutions.

Agreements transferring ownership of the real property located in Spain may be signed only before a notary public in Spain. However, it is not necessary to appear before the notary public personally. We may represent our Clients before the notary on the basis of a power of attorney. A notary public, as a person of public trust, ensures the security of the transaction. First of all, they verify if the seller is the actual owner of the real property and at the moment of signing the agreement block access to the real property register to be certain that the real property is not sold at the same time to another person.

Next, an entry in the real property register is made and we almost reach the end. The last matter we have left are taxes which can take everyone by surprise. To avoid any unexpected events and to reasonably plan the expenses, we prepare a list of taxes and fees connected with the real property. Finally, we will prepare a tax return and specify the relevant tax office.