Buying your first home in Spain can be an overwhelming experience. It will feel like there’s so much to understand, from the process to the paperwork, getting a mortgage and applying for your N.I.E. number.
To make it a little clearer, here are 5 things every first time home buyer in Spain, needs to know:
1. Know what your budget is. Everyone has a limit on how much they can and want to spend on their home in the sun. So, figuring out your budget before you start your search, will not only save you time, but will help you narrow down which properties to look at. Tip: You’ll love homes you can’t afford, so only look at the ones you can!
2. Do you need a mortgage? Mortgages are a lot easier to obtain than they used to be, especially during the last few years. So if you need to apply for a loan, there are a few different options out there right now. Speaking to the bank in Spain is very easy to do, they do speak English so don’t worry about communicating with them. You don’t need to habla Español! They have great deals at the moment, like paying towards the legal fees. If a mortgage is not what you need, but a top up loan would be enough, then the Spanish banks are offering “quick approval” loans up to €60,000. My advice is always to speak directly with the bank and let them offer you their best rate and advice. Amount you can borrow for “Non-Residents” (not residing in Spain,) is usually up to 70% of the purchase price. For “Residents” they lend up to 80%. Tip: These percentages do and can fluctuate from bank to bank, so it is always best to take advice directly from your chosen entity at the start of your property search.
3. N.I.E. number. This is your Spanish tax number. Every person that is purchasing a property, must have this designated number. This means, if two people are buying a home together, both individuals must have a number each. You will need to have this number to open a Spanish bank account and/or applying for a mortgage. N.I.E. numbers are applied for, through the “Comisaría de Policia” (National Police station) within the province of your new home address or through the Spanish Embassy or Consulate. You do not need this N.I.E. number to reserve a property to buy. Tip: Sometimes it’s easier to pay for someone to apply for this number for you, instead of trying to do it yourself.
4. The Notary. In Spain when signing on the dotted line to complete your purchase, you have to go to a Notary’s office to sign your new Title Deeds. The Notary is a Government official and is completely independent. They don’t work for the vendor, and neither do they work for the buyer. They are the ones that make your purchase legally binding and official. Tip: The Notary is a highly educated person. They don’t expect you to turn up to their office in beachwear. Formal casual will be expected and appreciated.ria” is an administrator.
5.The Notary. In Spain when signing on the dotted line to complete your purchase, you have to go to a Notary’s office to sign your new Title Deeds. The Notary is a Government official and is completely independent. They don’t work for the vendor, and neither do they work for the buyer. They are the ones that make your purchase legally binding and official. Tip: The Notary is a highly educated person. They don’t expect you to turn up to their office in beachwear. Formal casual will be expected and appreciated.
From reservation to completion, purchasing a property can be very quick. The fastest completion I’ve ever experienced, was in two days!
They don’t say speedy Gonzalez for nothing! ¡Que viva España!