How does the purchasing process of a holiday home work?

28 Sep 2022

The time has come! You have found your dream home in Spain, but how does the purchasing process go? 

First, a reservation contract is drawn up which must be signed. A deposit of between €6,000 and €11,000 must be paid. With the reservation contract and the down payment, the property will be taken off the market. Then there is about a month to draw up the purchase contract, this is where our in-house lawyer comes in. The lawyer is sent a purchase contract from the property developer. The contract is then thoroughly read and studied by the lawyer and changes are made by him where necessary. Once the purchase contract is ready, the real estate agent will contact you. The real estate agent will go through the contract with you and finally have you sign the contract. A purchase contract simply states the rights and obligations of the buyer and seller. Some points that always come back in a purchase contract are the payment terms. Often it also states that there is bank guarantee on the payments, this means that your payments are protected. Information about the plot or property you are buying, the completion date and the price of the property are also mentioned in the purchase contract.

Within the Spanish purchase process, the lawyer also takes on other tasks, this is different from what we are used to in the Netherlands and Belgium. For example, the lawyer checks if the licenses of the project are in order, if the land is free of debts, and he also arranges the electricity and water to be in your name. If you wish to rent out the property, our lawyer will also arrange that the rental license will be applied to for you. The next step in the purchase process is to visit the bank to apply for a mortgage if you need one. In Spain, it is possible for foreigners to borrow about 60% of the purchase price of the property from the bank. You will also open a Spanish bank account as a matter of course. Should you not need a mortgage, it is still possible to open a Spanish bank account but this is not required. Previously it was required to make the final payment to the notary from a Spanish bank account. Often people choose to open a Spanish bank account anyway because it is not always possible to activate direct debits from a Dutch or Belgian bank account.

The next step in the purchase process is to apply for the NIE number, which is a tax identification number. You will need the NIE number to register the property with the notary. The real estate agent can arrange the appointment to apply for the NIE number, this costs a one-time fee of about €100 per person. After all the steps in the purchase process, it is then time to go to the notary! For the appointment at the notary you don't have to do anything, the real estate agent and lawyer will arrange that everything is completely in order. All you have to do is go to the notary with your NIE number and your passport to transfer the property. If you have any additional questions, please do not hesitate to contact us:

Email: info@bellahouse.es

Mobile: +34 602 227 612