Complete guide – buying a house on the Costa Brava

The purchase process of a property in Spain

Although each purchase is unique, the process in Spain usually follows a number of fixed steps.

1. Orientation and determining your budget

The first step in buying a home in Spain is determining your budget and your needs. Many foreign buyers are looking for a second home for holidays, longer stays, or as an investment.

Important questions during this phase are:

• What type of property are you looking for (apartment, villa, finca)?
• Which region do you want to buy in?
• How many bedrooms do you need?
• Would you like to live close to the sea or in a quiet village?
• What is your budget, including incidental costs?

It is important to know that the purchase price of a property is not the only cost. In Spain, you usually have to take into account approximately 10% to 13% in additional costs on top of the purchase price.

2. Searching for a suitable home

Once your budget and wishes are clear, the home search begins. Real estate in Spain is typically offered through real estate agents, property portals, and local networks.

An important difference compared to some other countries is that real estate agents in Spain typically represent the seller. Therefore, many foreign buyers choose to work with a buyer's agent who exclusively represents the buyer's interests.

A buyer's agent can help with:

• Searching for suitable properties
• Organizing viewings
• Assessing market value
• Negotiating the price
• Guiding the purchasing process

This can save a lot of time and helps to limit risks.

3. Viewings

During viewings, you'll get a better feel for the property and its surroundings. It's wise to view multiple properties before making a decision.

During a viewing, don't just focus on the property itself, but also on:

• The state of maintenance
• Possible renovations
• The location and the neighborhood
• Noise pollution or traffic
• Future construction projects in the area

It can also be useful to view the property at different times of the day.

4. Price Negotiation

When you've found a property you want to buy, a price negotiation usually follows. In Spain, it's quite common to negotiate, especially when a property has been on the market for a long time.

Factors influencing negotiations include:

• The location of the home
• The state of maintenance
• The demand for real estate in the region
• The seller's motivation to sell

An experienced real estate agent can help determine a realistic offer.

5. Reservation Agreement

When the buyer and seller agree on the price, a reservation agreement is often signed first. This temporarily removes the property from the market.

The buyer usually pays a reservation fee. This amount is later credited towards the purchase price.

This contract gives both parties time to prepare for the next steps in the purchase process.

Private Purchase Agreement (Arras Contract)

After the reservation contract, the arras contract, also known as the preliminary purchase agreement, usually follows.

This document contains, among other things:

• The purchase price
• The details of the buyer and seller
• A description of the property
• The date the transfer will take place at the notary's office

When signing this contract, the buyer usually pays about 10% of the purchase price.

If the buyer then decides not to proceed with the purchase, this amount can be lost. If the seller withdraws, they usually have to refund double the amount.

7. The NIE number

An important administrative step when buying property in Spain is applying for a NIE number.

NIE stands for Número de Identidad de Extranjero and is an identification number for foreigners in Spain.

This number is necessary for various administrative actions, such as:

• Buying real estate
• Opening a bank account
• Paying taxes
• Shutting off water and electricity

The NIE number can be applied for at a police station in Spain or through a Spanish consulate abroad. Many buyers arrange this number before purchasing a property to avoid delays in the process.

8. The role of the notary

In Spain, the notary plays a significant role in real estate transactions. The notary is an independent public official responsible for officially recording the sale.

The final transfer of the property takes place at the notary's office, where the purchase agreement (escritura de compraventa) is signed.

During this appointment:

• The remaining purchase price is paid
• Ownership is officially transferred
• The buyer receives the keys to the property

The notary checks, among other things, the identity of the parties and ensures that the purchase agreement is drawn up correctly in legal terms.

After signing, the deed is sent to the land registry, where the new owner is registered.