An agency representing the private seller, whose job is to market the property under either an exclusive sales agreement (only one agency
markets the property) or a non-exclusive one (several agencies are allowed to market it).
The notary's role in Spain is different from that in France or Belgium. It is therefore essential to have certain information checked by a lawyer or another qualified person:
– Making sure there is no outstanding mortgage, no debt on the property, etc.
– Obtaining and checking the registration certificate at the town hall
– Checking the cadastre (land survey) and that the property matches it
– Checking planning projects
– Checking the preliminary purchase contract
A lawyer's fees in Spain are around 1.5% of the purchase price.
Acheter Malin Espagne carries out all the necessary legal checks before a property is bought. Our services include the fees of a lawyer, who will review the purchase file and give you a legal opinion on the transaction to make your purchase safe.
Opening a Spanish bank account is essential to buy property. It is free, but cannot be done remotely, because banks have to carry out certain checks in person.
Account fees vary from bank to bank. They are sometimes waived if there are monthly transactions.
Some banks offer online banking in French.
Acheter Malin Espagne helps its clients open a bank account and works with one of Spain's largest banks: Banco Sabadell.
Buying a flat or house in Spain involves 3 types of contract governing the transaction between buyer and seller.
The reservation contract is a private agreement. It is not compulsory. It usually lasts a week or ten days. As the name suggests, by signing it the buyer makes sure the owner reserves the property for them during the 'reservation' period, until the arras contract (preliminary contract) is signed. The reservation contract sets out the terms of the purchase: the price and the timetable, meaning the deadline for signing the preliminary contract and the deadline for completing the sale at the notary. The buyer usually pays the owner 1% of the purchase price. This sum is returned if the seller withdraws before the arras contract (preliminary contract) is signed.
However, the buyer loses this money if they change their mind and do not buy the property.
Once both parties have agreed the terms of the sale, the buyer and seller commit to it through a preliminary contract, or arras contract.
This contract sets out all the conditions of the transaction (deadline for signing the deed of sale, price, payment terms, cadastral reference, inventory…).
At this point, the buyer pays the seller 10% of the purchase price. If the buyer
withdraws, this money is not refunded. If the seller cancels the sale, they must pay the buyer double this amount.
The deed of sale is a public deed. It is the formal, legal document recording the transfer of ownership to the buyer. A notary must be present. At this point the buyer pays everything due: the balance of the price, the notary's fees, and the taxes linked to the purchase. The deed is signed by both parties and by the notary. The originals are given to the buyer within 3 months of signing, and
copies are sent to the land registry and to the Spanish tax office so the corresponding taxes can be settled. On the day of the purchase, the parties receive a provisional copy of the deed, called the 'Copia Simple de la Escritura de Compraventa', on paper and/or as a PDF.
The cadastre is an official Spanish body that records properties under a cadastral reference.
In Spain, the cadastral reference, also called the cadastral certificate, is the official identifier of a property. It is a 20-character alphanumeric code. It gives several pieces of information about the property, such as:
– Its address
– Its reference
– Its surface area
– Its use
– Its surroundings
– Its plan and location
The Spanish cadastre comes under the Ministry of Finance and Public Administration. Each property is recorded according to its type: rural, urban, special, administrative, associative, historic, etc. It is compulsory, to fight fraud in the property sector and to give owners legal certainty.
Cadastral value: this is the value of the property for official purposes. It is a reference value, not a market value, an 'administrative' figure the Spanish authorities use as a basis for calculating taxes.
The main difference between a buying agent and an estate agency is who instructs them: the estate agent works for the owner selling the property, while the buying agent works only in the interests of the future buyer.
A buying agent has no properties of their own on the books: they select properties across the whole market according to the client's criteria. They send the client a report on each property to help them choose, then organise viewings of the shortlisted properties. The buying agent supports the client throughout the purchase, up to the signing of the deed of sale. The relationship with a buying agent is much closer than with an estate agency: it is based on trust and openness, a real partnership that lasts.
Acheter Malin Espagne also helps new owners settle in, for example by transferring the water, gas and electricity contracts into their name.
This document proves where you live and that you are registered with a town hall. It is issued by the town hall and serves as proof of your home address. You will be asked for it for many administrative procedures. Anyone planning to live in Spain for more than 6 months a year needs the empadronamiento, whatever their work situation, age or nationality.
Getting it is quick. You need to take the following documents to the registration office (padrón) at your town hall:
– Identity document + photocopy
– Original NIE + photocopy
– If you rent: the tenancy agreement signed by both parties
– If you have bought: a copy of the deed of sale + photocopy
Registration fees: These are the fees for registering the property at the land registry, around 1% of the purchase price.
Notary fees: in Spain, notary fees are set by law and are the same for every notary, although they vary with the number of pages signed between buyer and seller and with the price of the property. On average they come to 1.5% to 2% of the sale price, with a minimum of €1,500, paid by the buyer unless the preliminary contract says otherwise. ITP:
Impuesto sobre Transmisiones Patrimoniales (property transfer tax): you pay this tax if the property is not new. It amounts to between 6% and 10% of the sale price.
If you buy a new-build property, you pay VAT (IVA in Spanish) instead, at 10% of the sale price.
If your property is part of a development with shared areas, you pay your share of the upkeep and cleaning of the common areas, the lift if there is one, and so on. For similar services, community fees are generally much more reasonable in Spain than in France or Belgium. For example, for a two-bedroom, 50 m² flat in a 2000s development with a pool, garden and parking, community fees average between €80 and €150 a month.
If you move to Spain for more than 6 months, your vehicle must have Spanish number plates. To make the change:
– Pass the Spanish roadworthiness test, the ITV (book online in advance), at an approved centre.
– Once you pass, you receive a conformity sheet and a certificate with the vehicle's specifications.
– The ITV sticker and card are posted to your home. The sticker must be displayed on your windscreen.
– Book an appointment with the DGT (Dirección General de Tráfico; http://www.dgt.es) and bring the form 'Solicitud de Matriculación – 9.03', fully completed and signed.
– Once this is done, you receive the vehicle registration document and can register the vehicle in Spain.
ITP: if you buy a resale property in Spain, you pay ITP (property transfer tax), the equivalent of stamp duty. It is 10% of the sale price. If you buy a new-build house or flat, you do not pay this tax, but you pay IVA (Spanish VAT) at 10% of the sale price. Property tax in Spain is 30% to 60% lower than in France or Belgium.
IRNR: non-resident income tax (IRNR) works differently depending on whether the property is let
to third parties or not.
– If the property is let, the tax is 19% of net income, meaning rental income minus the costs of the property. In Spain, these costs can be deducted from rental income: cleaning of common areas, stairs and entrance, lift maintenance, rubbish collection and electricity.
– If the property is not let, IRNR is calculated as 1.1% of the cadastral value. In practice, for a two-bedroom, 50 m² property built in the 1980s, the cadastral value might be €50,000. The tax is applied to that €50,000, giving an IRNR of around €500 a year, which remains very affordable and is quickly covered by rental income. There is no council tax in Spain, but this tax on non-resident owners is somewhat similar.
IBI: the owner also pays IBI (Impuesto sobre Bienes Inmuebles), the Spanish property tax, which is very low compared with French-speaking countries. A two-bedroom, 50 m² seafront flat from the 1980s might have an IBI of between €200 and €600 a year.
In general, Spanish taxes are lighter than in French-speaking countries, which is attracting more and more foreign buyers to settle in Spain.
Many owners of a flat or house in Spain choose to let their property for a yearly income or simply to cover their costs. The letting can be managed by the owner or entrusted to an agency. Agency management fees average 25% of the rental income, and can reach 40% depending on the area and the services included.
A flat or house on Spain's Mediterranean coast can be let all year or by the week (in the holiday season). A purely rental property (let all year) yields around 5% to 6% gross. If the property has mixed use (weekly lets in season and use by the owner), the yield may be around 3% to 4% gross.
For a Spanish tax resident: tax on rental income is around 20% to 22%, depending on total declared income (property income and all other income of the person filing).
For a non-resident: non-resident income tax (IRNR) is 19% of net income (rental income minus the community costs). In Spain, these costs can be deducted from rental income.
There is no council tax in Spain, but non-resident income tax (IRNR) is somewhat similar.
The owner also pays IBI, the Spanish property tax.
Buying a flat or house in Spain to let remains much more profitable than in France, for example, because rental income is taxed less and the yearly costs of ownership are much lower.
A document issued by the land registry. This summary describes the property and identifies the current owner. It also shows whether there are any outstanding charges on it.
In Spain, the notary has a limited role in buying a property. Unlike in some other countries, they only step in when the deed of sale is signed. They confirm the identity and legal capacity of the parties, make sure the title deed is properly recorded, and check the register of mortgages and charges, the property tax and the cadastre.
Acheter Malin Espagne gathers all the documents for the notary's file before the signing (the notary requires them but does not collect them).
An NIE is compulsory to live in Spain and to carry out any property transaction. It must appear on all official documents sent to you and on every application you make to the authorities.
The NIE (foreigner identification number) is personal, unique and exclusive to you. It is issued by the Spanish National Police.
The NIE is not an identity document. It is only valid together with a national identity card or passport.
You must apply for the NIE in person at a Spanish National Police station or at the Spanish consulate in your country of residence.
You will need to bring the following documents:
– Your valid passport or identity card
– Form EX-15, printed and correctly completed
– Form 790
– Proof of the reason for your application
The fee for an NIE is around €20. Acheter Malin Espagne can also arrange your NIE for you through an accredited agent (gestor), in which case it is obtained remotely (approximate cost of the service: €150 per NIE).
You have two options: borrow in your own country or in Spain.
If you decide to borrow in France, for example, to buy in Spain, you will need to own a property free of any charges and loans. On that condition, your bank will ask you to put up your flat or house in France as security. The mortgage is therefore secured on the property you already own.
If you decide to borrow in Spain, be aware that few French-speaking banks there handle property loans. Targobank (Crédit Mutuel group) and CIC Interbanco are the best known and have branches in Spain. Online, Selfbank (Boursorama group) also offers financing.
In practice, the loan is paid into your French bank account and then transferred to your Spanish account for the purchase. For non-resident buyers, a Spanish mortgage can only cover a maximum of 60% to 70% of the property's valuation. If you have family ties in Spain, a guarantor, or a joint account with a resident, the percentage may be higher, even the same as for residents. The loan can run for up to 25 years and must be taken out before the age of 65.
The land registry is the legal reference for property in Spain. With the cadastral number, we can obtain information about the owner and the property for sale. We can check that the owner really is the person intending to sell. If the seller is married, we need to establish their marital property regime according to their nationality, to see whether they can sell alone or need their spouse's consent. We can also find every charge on the property in the land register (mortgages, easements, seizures, cautionary notices…) to avoid unpleasant surprises.
The return earned from letting a property
The Spanish public health system is free. It is organised around GPs and paediatricians in public health centres, called 'centros de salud', or CAP ('centre d'atenció primària') in Catalonia.
To get free care, there is only one route: it always starts with your GP at the health centre and must continue within the public system. At the pharmacy, part of the cost of medicines is covered. How much depends on whether the condition is chronic, whether the patient is working, and their income.
Private health insurance in Spain runs alongside the public system, with its own GPs, specialists and even hospitals. Insurers offer private policies, and the premium determines which services are covered at no extra cost. They give their clients a list of affiliated doctors to choose from. There are several types of policy, depending on the services and family members you want to cover.
Once you have your NIE, you can apply to register with Spanish social security.
You first apply to the General Treasury of Social Security (Tesorería General de la Seguridad Social) for your place of residence.
You will need to provide:
– Your identity document + a photocopy
– Your NIE + a photocopy
– Your empadronamiento certificate
– Form TA-1 if you are working, downloadable here: http://www.seg-social.es
– For retirees: form S1, fully completed and signed.
You will receive your social security registration document with your number.
Next, go to your local health centre to apply for the 'tarjeta sanitaria', the Spanish health card. You will be assigned a GP at the same time. The health card gives you access to care throughout the Spanish public health system.
Would you like to know how we can help you find and buy the right property on the Costa Brava?
Book a free, no-obligation discovery call now. We will look at your project and give you practical advice.
Séverine Weiss, Acheter Malin Costa Brava