Real Estate – What are the steps to purchase a property in Spain?

Although each project is different and the process of buying a holiday home or a second residence differs significantly from investing as business, in general, the phases found in any real estate operation would consist of the following:

  1. Tax planning and deciding on the legal structure (buying in the name of a company, in your own name, together with your spouse or partner, in the name of your children, etc.)
  2. Administrative tasks (setting up the planned structure, if any; executing Power of Attorneys, applying for the tax identification codes, opening a bank account, seeking for financing, etc.)
  3. Search for a potential purchase property (often simultaneously with the completion of points 1 and 2)
  4. Negotiation over the target object(s) identified
  5. Reservation agreement or Letter of Intent
  6. Conduct of Legal and Technical Due Diligence
  7. Negotiation and signing the down payment agreement
  8. Execution of the purchase deed before a Spanish Notary
  9. Consideration and obtaining of insurance coverage
  10. Payment of the Property Transfer Tax or VAT, as applicable
  11. Updating the Land Registry
  12. Arrangement and contract for utilities and establishment of direct debit facilities
  13. Planning for the inheritance of properties
  14. Housewarming Party!

You can watch all the explanation from Raisa Venermo (partner of AvaLaw Legal Services) in the video below:

If you have questions regarding the purchase process in Spain, our Real Estate Department will be happy to help you. Here are our Real Estate legal services which it has helped to many of our clients.