Buying a house in Spain as a foreigner can seem like a long and complicated process, but it doesn't have to be, Casa Spain 24 helps you through the whole process.

In this article you will find a detailed list of all the steps any expat (resident of another country) should take, some important considerations and all the fees and costs associated with the buying process.

How long does it take?

The process of buying a property can be divided into three different stages, each with different lengths.

First, you need to find your dream home. That is, the house that suits your requirements and the one you ultimately select.

Depending on how picky you are (and there are plenty of reasons to be picky here), this can take anywhere from 1 month to a full year. Take your time.

Make sure you find the right city and then consider not only the house and all its interior features, but also the surroundings and how close you will be to places like public transport, shopping centers or even your favorite leisure spaces.

Once you've found the right home, the actual buying process begins. This may take 2 to 3 months before you receive your keys.

However, in the vast majority of cases, this journey will be extended (and thus creating the final and third step) if you apply for a mortgage. If applicable, you need to add a few extra weeks as the bank will take some time to check and prepare all the details that are related.

Our recommendation is to always plan ahead and play with some margins. The process can take up to 3 months, but it's better to give yourself enough time to avoid stress if any inconvenience arises (which it usually will).

1. We help you get your NIE

Getting your NIE number is the first step and actually one of the most important.

The NIE is the identification number you are given as a foreigner and is essential for any kind of economic activity or financial transaction (such as buying property) as well as registering as a home owner.

Applying for this number is quite simple and you can do it from abroad (at the Spanish embassy when you are still in your home country) or directly in Spain.

There are different types of NIE and depending on your plans, you will choose one of the following options:

• You must obtain a non-resident NIE if you will be purchasing the property but will not be living in Spain (if only visiting the country for this reason) and are a non-EU national.

• A resident NIE if you are going to be in the country for more than 183 days a year (and buy the property during this time), regardless of whether you are EU or non-EU.

• And, if you're from the EU but will only be in the country for the duration of the purchase, you can get a temporary NIE.

2. We help you open a bank account

Even if it is not 100% necessary, having a bank account in Spain will speed up the process and make the transaction easier in all the different steps.

This bank account will be required to pay notary fees and all other associated costs.

And usually having money abroad means significant delays and additional complications.

Once you have your NIE, you can directly open an account with your preferred institution.

3. We facilitate the signing time of the contract

Now that you have found your dream home, you can negotiate a price with the seller, or more beneficial is to rely on a real estate agent, as they will speed up the process and even negotiate on your behalf.

4. We facilitate obtaining a mortgage loan

Now that you have a general but more accurate idea of ​​the total price, it's time to start looking for a mortgage if you need one.

At this stage, we suggest that you start to compare and choose the lending institution that you will eventually hire.

Understand the different types of interest rates and which plan offered is the one you will ultimately pursue (since terms can vary drastically).

If you make the decision at this stage, the process will be much easier later.

Note that if you are a non-resident, you have to pay an additional 15% down payment compared to residents.

Getting an official appraisal for your mortgage. Why is this so important?

Because the total amount the bank will lend you will be based on the results of this assessment (official value).

Then, ideally, the price found is the same as what you agreed to pay the seller, or even higher.

If the appraisal results in a lower price, the bank will only lend you 50 or 60% of the appraised money, and you will pay the difference.

Who is in charge of this official assessment?

The bank will usually suggest or provide its own valuation specialists, although you can always hire one yourself.

Before going to the notary, you will need to prepare all the necessary documents and make sure that the property does not suffer from any defects.

What documents will you need?

• The so-called "nota simple". This document gives all the details about the property, such as the previous owners, its classification (whether it is a residential or commercial property), whether it has debts or mortgages, etc.

• ITE ("inspección técnica de edificios"), which confirms that the building or house is structurally sound.

• You also need to check if the property has had any debt/s in the past years as once you become the owner you will be liable for the debts up to the last 3 years.

• Property deed ("escritura pública").

5. We explain the booking steps

Once you've agreed on the price with the seller, the next step is to sign what's called a reservation contract or "contrato reserva".

This document basically states that you have in fact agreed to the price and is used to confirm that the property will be removed from any online platform it is advertised on (no longer displayed) and the seller or estate agent must cease to offer it to new buyers.

The reservation contract is usually used for those transactions where there is an intermediary, as a direct negotiation between buyer and seller would not actually require one.

6. We are with you for the entire duration of the contract

Now we come to a really important contract, the deposit contract or "contrato de arras".

This is the private purchase contract where you demonstrate a real commitment to buy the house/apartment at the agreed price.

For this contract to be valid, you will need to pay a certain amount of money to confirm your intention to buy with the seller (which will of course be deducted from the final payment).

There are two main variables you have to deal with when it comes to the escrow contract:

• The amount of money you pay with it, which is usually €6,000 (even if you can negotiate and reduce/increase this amount).

• Duration of the contract. Here we recommend that you always agree to 90 days, so that you have enough time to make the right decision when taking out a mortgage (as banks will not take you seriously until they see this contract).

But that's not all. There are several negative consequences for non-compliance:

• If you withdraw after paying this arras contract, you will lose that money.

• And if the seller is the one who now does not want to continue the process, he must return the same amount multiplied by 2.

7. Going to the notary and signing the title deeds

At the first visit to the notary, the title deed and the contract with the seller will be drafted and witnessed.

This part is crucial for you because the notary will help you fully understand all the terms of the contract so you can know what you are actually signing and agreeing to with the seller.

You will then visit the notary for the official signing of the deed of sale, the final step before the property is fully yours.

Who will participate?

Basically, all the parties involved in the transaction: the buyer, the seller, the bank representative who will hand over the check with the money for the purchase, the real estate agent and the lawyer if there is one, and the notary.

After that, you'll finally get the keys, but that won't be the end yet.

8. Register the property

Finally, you'll need to register your new home with the land registry (which required paying the appropriate fees, as we'll see below).

Basically, through this process, you will identify yourself as the new owner, which involves paying the property transfer tax and stamp duty to the regional government.

You will also transfer ownership of various public services; such as gas, water and electricity.