PROPERTY BUYER’S GUIDE

Step-by-Step Guide to Buying a Property in Spain

The following outlines the key steps of purchasing a property in Spain, from reservation to final completion, including all associated costs and formalities.

Reservation Contract

Once you have found a property and an agreement has been reached on the price and basic conditions of the sale, First Class Homes will prepare a reservation contract to be signed by both the buyer and the seller.

The reservation contract:

• Confirms the agreed purchase price and main terms of the sale
• Temporarily removes the property from the market for a specified period
• Allows your lawyer time to carry out initial legal checks and due diligence
• Enables your lawyer to begin preparing the private purchase contract

At this stage, a reservation fee is usually paid, typically €6,000, which is held on account and later deducted from the final purchase price. The reservation period generally lasts long enough for your lawyer to review the legal status of the property and confirm that it is suitable to proceed.

Private Purchase Contract (Contrato Privado de Compraventa)

The next step is the signing of the private purchase contract, which sets out all the detailed terms and conditions of the sale. This normally takes place within two to three weeks after the offer has been accepted and the reservation contract signed.

During this stage, your lawyer will carry out comprehensive legal checks, including:

• Verification of ownership at the Land Registry
• Investigation of any encumbrances, debts, or charges registered against the property
• Confirmation that local taxes and community fees are up to date
• Review of planning permissions, licenses, and legal compliance

If any issues or irregularities are discovered, your lawyer will advise you on the best course of action , whether that involves resolving the issue, renegotiating terms, or deciding not to proceed with the purchase.

Upon signing the private purchase contract, the buyer is normally required to pay a deposit of 10% of the agreed purchase price (minus the reservation fee already paid). This contract is legally binding on both parties and sets a fixed date for completion.

Final Completion and Registration of the Title Deed

Final completion takes place when the Title Deed (Escritura Pública) is signed before a Spanish Notary Public. At this point:

• The remaining balance of the purchase price is paid
• Ownership of the property is legally transferred to the buyer
• The keys are handed over, and the buyer takes possession of the property

Following completion, your lawyer will:

• Declare and pay all applicable purchase taxes within the legal deadlines
• Register the Title Deed at the Land Registry in your name
• Arrange for utilities and local services to be transferred to you
• Ensure all post-completion formalities are correctly finalized

Purchase Costs

In addition to the purchase price of your new property, buyers should budget for several additional costs associated with completing a property purchase in Spain. These typically amount to approximately 10–13% of the purchase price, depending on the property and your individual situation. Understanding these costs upfront ensures there are no surprises along the way.

Cost Item	Estimate	Notes
Transfer Tax (ITP)	8–10%	In Andalusia: 8% on first €400,000, 9% on €400k–€700k, 10% above €700k. Furniture included: 4%. Paid by the buyer.
Lawyer Fees	~1%	Covers legal due diligence, contract review, advice on taxes, and post-completion registration.
Notary Fees	~1%	Paid at completion for notarisation of the Title Deed. Typically calculated based on property price.
Land Registry Fees	0.5–1%	Paid to formally register the property in your name. Fees depend on property value and are calculated on a sliding scale. Covers recording ownership, mortgages, liens, or other encumbrances, and ensures legal recognition of your property rights.
Technical Survey / Inspection	0.2–0.5%	Optional but recommended to check for structural issues or hidden defects.
Administration / Utilities	€100–€300	Transfer of electricity, water, rubbish collection, and community contracts.
Bank Costs	0.1–0.5%	For international transfers, banker’s drafts, or currency exchange. Fees depend on the bank and payment method.
Other Potential Costs	Varies	Mortgage arrangement fees (~1%), prorated community fees, optional home insurance or warranty.