Sale

Guide to buying a house in Spain

You have made the decision; you want to have a property in Spain on the Costa Blanca. The next question is, "How do I buy a property in Spain?"

Step 1: Decide how much you want to pay for a property.

To decide how much you want to pay for a property, you will need to know the total costs involved. We have broken these down below (this is only a guide and subject to change).

Resale Property: Costa Blanca +/- 13%

ITP Tax = 10%
Legal Fees: 1 to 2%
Additional Costs: Notary, Land Registry

Brand New Property in Costa Blanca +/- 14%

VAT = 10%
AJD Tax = 1.5%
Legal Fees: 1 to 2%
Additional Costs: Notary, Land Registry

Resale Example

Property Price: €400,000
ITP = €40,000 (10%)
Legal Fees: €8,000
Notary, Land Registry = €1,000

Total Cost: €449,000

Step 2: Estate Agents Costa Blanca

You will want to approach estate agents to inquire about properties and areas where you want to start your search.

Estate agents on the Costa Blanca generally all share properties and work together. You will often see the same property advertised more than once. A seller may have their property for sale with five different agents, though each may specialise in a different market, e.g. One may advertise in the Dutch market, another in the Scandinavian market.

New Life Property Spain will work with you to show you properties in areas from Denia to Calpe and Inland to the Orba and Jalon Valleys, an area of over 400 km2. If you wish to, then we can show you properties with multiple estate agents, but you only have to work with one company.

Step 3: Preparing for your visit to the Costa Blanca

If you choose to work with New Life Property Spain, then we will work with you through the process, performing all the groundwork for your visit.

We will identify your wants and needs from a property and the area it is in, and we will organise all your viewings on our properties. Should you wish us to also work as your property finder, we will make arrangements to also see other agents' properties in your chosen areas.

Don´t be worried if the property you originally inquired about is sold. The market is fast moving on the Costa Blanca, and we are taking on new listings every month.

Step 4: Viewing Properties

Once you are here in Spain, we will meet with you at an agreed location or in our office, and we will then view the properties that you wish to see. We may even make suggestions on properties that are also suitable.

We often go out with a client on multiple occasions during their visit as we narrow down the town, area, and property that you wish to purchase.

Step 5: The Dream Property

When you have found your dream property, we start with an offer. Most properties are selling close to the asking prices, and your sales representative will guide you on the expectations of the vendor and help you come to a fair price.

Once an offer has been accepted, you will be required to sign a reservation agreement to secure the property and remove it from the market. The amount that is paid is dependent on the property price, as below.

For properties less than €1,000,000, the reservation fee is €5,000.

For properties over €1,000,000, the reservation fee is calculated at 1% of the purchase price.

Step 6: Signing the Sales Contract

After securing your property with a reservation agreement, your legal representative will start to prepare a "private purchase contract" (Contrato de Compraventa), which should be signed within 30 days of reserving the property. Upon signing this contract, you will need to pay 10% of the total purchase price, less the reservation of €5,000

Your lawyer will, during the preparation of the contract, perform all the necessary checks on the property to ensure there are no legal reasons why the purchase cannot go forward.

Step 7: Day of Completion

The day is here for you to complete the sale of your dream home, and it is time for the final stage of the purchase, which is undertaken in the office of a chosen notary, who oversees the signing of the title deeds (Escritura de Compraventa) by both the buyer and the seller. (or the legal representative, under a power of attorney)

Upon signing the title deeds, the buyer will be required to pay the remaining funds, including the ITP transfer tax for resales, which equates to 10% of the cadastral value (Land Registry). You should allow a further 2% for notary, land registry, and legal fees.

Once your new deed is signed by all parties and ‘notarized’, you are now the legal owner of your property. Your lawyer will register your deed at the local Land Registry office on the same day as completion or as soon after as possible. They will also register you as the new property owner with the local council tax office, your utility companies, and, if necessary, with your community of owners, according to the agreement you have with your lawyer.

Step 8: Congratulations

Once all the legal formalities have concluded, it is time for you to take ownership of your dream home on the Costa Blanca. The only thing left is for you to settle into your new home and enjoy your time exploring this beautiful part of Spain we like to call home.

Looking to buy a property on The Costa Blanca, Spain?

To view all Properties for sale on Costa Blanca Click HERE, or fill in this form (CLICK HERE) and we will get back to you by return

Google Maps :  CLICK HERE

TEL: +34 865 615 010  

MOB: +34 711 05 81 92

New Life Property Spain, Av. de Lepanto, 7, 03730 Xàbia, Alicante, Spain

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