Buying a Property In Spain – Making an Offer

If you’re looking at buying a property in Spain, knowing how to make an offer is crucial. Whether you’re an expat, a property investor, or simply seeking a holiday home, the process can be different from what you’re used to. Here’s a guide to help you navigate the process, including negotiation tips and what to expect along the way.

1. Understand the Spanish Property Market

Before making an offer, it’s essential to research the local property market. Prices in Spain can vary significantly based on the region, from bustling urban areas like Madrid and Barcelona to more relaxed coastal locations like Andalucía or Mallorca. Compare similar properties in the area to see if the asking price is fair, and be prepared to negotiate a lower price if the market allows.

2. Hire a Local Real Estate Agent or Property Lawyer

While it’s possible to handle the purchase on your own, hiring a local real estate agent (inmobiliario) or use a property lawyer is highly recommended. They understand the market, can advise on local property laws, and help with the negotiation process. Real estate agents also assist in presenting offers and handling the necessary paperwork.

3. Get Your Finances Ready

If you plan to take out a mortgage in Spain, it’s a good idea to get pre-approval from a Spanish bank. This demonstrates to sellers that you’re a serious buyer. If you’re purchasing the apartment with cash, make sure your funds are easily accessible, especially if you’re dealing with currency exchanges and international transfers.

4. Make an Initial Offer

When you’ve found the right apartment, it’s time to make an initial offer. In Spain, it’s common to start with a verbal offer, which can be made through your agent or directly to the seller. Your offer can be 5-10% lower than the asking price, depending on the property and the local market. Negotiating property prices in Spain is typical, so don’t be afraid to negotiate respectfully.

5. Submit a Formal Written Offer

Once the verbal negotiations are successful, you’ll need to submit a formal written offer (oferta de compra). This document includes the price, conditions, and timelines. The offer is typically valid for a certain period (for example, 10 days), allowing the seller to accept, reject, or make a counteroffer.

6. Consider a Reservation Agreement

In competitive markets, signing a reservation agreement (reserva de compra) can be a smart move. This agreement reserves the property for you for a short period (usually 7-15 days) in exchange for a deposit, generally between €3,000 and €6,000. This allows you to finalize financing or clarify details before moving forward with the formal contract.

7. Negotiate the Terms

After submitting the offer, negotiations may continue. Some common points to discuss include:

• The final price of the property.
• Fixtures and appliances are included in the sale.
• Any necessary repairs.
• The completion date for the sale.

8. Sign the Arras Contract

Once the seller accepts your offer, you’ll sign an arras contract. This is a pre-sale agreement that usually requires a 10% deposit. The contract outlines all the terms of the sale, including the total purchase price and payment timeline. If you back out of the deal after signing the arras, you forfeit your deposit. If the seller backs out, they are often required to return double the deposit.

9. Legal Checks and Due Diligence

Before finalizing the purchase, it’s crucial to perform a legal check on the property. This is where your lawyer plays a key role. They will ensure:

• There are no outstanding debts or mortgages on the property.
• The property is correctly registered at the Property Registry (Registro de la Propiedad).
• Any extensions or renovations were carried out legally with proper planning permissions.
• There are no unpaid community fees (gastos de comunidad) if the property is part of a building.

10. Sign the Deed of Sale (Escritura Pública)

Once all checks are complete, you’ll meet with a notary to sign the escritura pública (deed of sale). This is a legally binding document that transfers ownership of the property from the seller to you. At this stage, you’ll also make the final payment, and the property is officially yours.

11. Pay Taxes and Fees

When buying a property in Spain, be prepared to pay certain property taxes and fees:

• Transfer tax (ITP): Typically between 6-10% of the purchase price for resale properties, depending on the region.
• Notary and registration fees: Around 1-2% of the purchase price.
• Legal fees: Usually around 1-1.5% for your lawyer’s services.

12. Register Your Ownership

Finally, the notary or your lawyer will register the property in your name at the Property Registry. Once this step is complete, you are the official owner of your Spanish apartment.

Key Tips for Expats

• Language barrier: Make sure all contracts and legal documents are translated, or hire a translator if necessary.
• Tax obligations: If you’re a non-resident but own property in Spain, you’ll be required to pay property taxes. It’s advisable to consult with a tax advisor to understand your tax obligations as a foreign property owner.

Resources  Referrals for real estate in Spain

With rising rental prices, many consider buying real estate in Almuñecar —La Herradura. We have a list of recommended English-speaking real estate agents, renovation experts, home insurance, accountants, and expert Spanish property lawyers to help you navigate buying a home on the Costa Tropical. Costa Tropical Real Estate Resources here.

Making an Offer – buying a property in Spain

Navigating the process of making an offer on a property in Spain requires careful preparation and understanding of the local market. Whether you’re looking for a holiday apartment, an investment property, or a permanent residence, following these steps will help you succeed in your purchase. With the right real estate agent, a good lawyer, and a clear plan, you can confidently make an offer and secure your new home in Spain.

Here is more guidance on buying property in Spain or help finding the right experts! Happy house hunting!