FAQ
Do you need a Notario to sign the sales agreement in Spain ?
No. The Arras agreement (pre-contract of sale) is a private contract between the seller and the buyer. It does not require the involvement of a solicitor. The deposit is paid directly into the seller’s account and not into a notary’s escrow account. This contract may already have been drawn up by the estate agency, but with OPENNESS services, the contract is drawn up by us in order to protect your interests and not those of the seller.
What is the difference between the reservation contract and the sales agreement? vente « ARRAS » ?
Both are private contracts and do not require the involvement of a notary. Once you have found your dream property, the estate agent or seller may ask you to sign what is known as a “reservation agreement”. This agreement ensures that the property is reserved for you. You will generally be required to pay a deposit of between €1,000 and €3,000. At this stage, the seller or estate agent must provide all the necessary property documents so that its legal status can be checked. Based on the outcome of these checks, the preliminary purchase agreement can then be prepared. The reservation agreement should also be carefully drafted and reviewed by an expert who is independent of both the estate agent and the seller.
Which documents should you request from the seller or estate agent to verify the property’s legal status?
Before signing a sales agreement, it is essential to obtain:
- - Nota Simple: the property’s identification document in Spain,
- - Proof of paid IBI (property tax),
- Cédule d’habitabilité,
- - Escritura: copy of the seller’s deed of ownership,
- EPC – Energy Performance Certificate
- Rules and regulations of the owners’ association.
- - Information on community fees, if you buy an apartment or a house in an urbanization.
Is it necessary to hire a lawyer in Spain to buy a property?
Yes, it is strongly recommended and almost essential. The lawyer should specialise in Spanish property law, be registered with a Spanish Bar Association (colegiado), and be independent of the estate agency so that they represent your interests—not those of the seller.
Will the notary check if the property has debts or hidden defects?
No, that is not his role in Spain. The notary’s role is limited to authenticating the transaction and verifying that the seller is indeed the legal owner. He does not check:
- The property’s urban legality, - The existence of debts, charges, or disputes, - Hidden defects or risks (e.g., flooding).
Is the role of a gestor necessary when buying property in Spain?
Not always, but it is mandatory if you finance the purchase with a Spanish bank.
A gestor can register the title deed, pay the taxes related to the purchase, and handle local taxes.
Can an apartment be illegal in Spain as a house ?
Yes. A property may be considered illegal if renovations (interior or exterior) were carried out without the required declarations or prior authorization.
Can I buy a property in Spain without being a resident?
Yes. You only need to obtain an NIE (Número de Identificación de Extranjero), which is mandatory to sign the deed and pay taxes. Without this document, the final signing of the deed cannot take place.
What are the additional costs associated with a property purchase?
They vary depending on the region and the type of property, but generally represent between 8% and 13% of the purchase price or the official reference value—whichever is higher—and include:
Property Transfer Tax (ITP) when purchasing a resale property, or VAT (IVA) when purchasing a new-build property; notary fees; Land Registry fees; the fees charged by your lawyer or independent expert; and, where applicable, gestor fees.
Do I need to open a bank account in Spain?
Yes. It is required to pay community charges and local taxes, settle utility bills such as water and electricity, receive the funds from a Spanish mortgage or transfer your own funds to complete the purchase, and pay for your home insurance.
Do I need to be physically present in Spain to buy?
Not necessarily. You can grant a power of attorney (poder notarial) to a Spanish lawyer, with the required legalisation or apostille. Your lawyer can then represent you and sign on your behalf.
Which taxes will I pay after the purchase?
IBI (local property tax): payable annually and calculated based on the property’s cadastral value. IRNR (Non-Resident Income Tax): if you are a non-resident property owner, you must pay tax on a deemed rental income even if the property is not rented out. If you rent out the property, rental income is generally taxed at 19% for EU/EEA residents, with certain expenses potentially deductible. Different rules and a 24% tax rate generally apply to residents outside the EU/EEA.
How long does the purchase process take in Spain?
On average 6 to 12 weeks, depending on the speed of legal checks, obtaining the NIE, and securing bank financing.
What checks should be made if the seller is a non-resident?
If the seller is a non-resident, make sure they are up to date with their IRNR tax. Otherwise, you may be required to pay this debt upon registration.
What is the difference between urban IBI and agrarian IBI?
- Urban IBI: applies to properties built in urban areas,
- Agrarian IBI: applies to rural properties or those built on agricultural land.
Make sure the IBI paid corresponds to the property’s actual classification.
On which value does the Spanish state apply the ITP (Transfer Tax)?
ITP is the Property Transfer Tax payable when purchasing a resale property. It is generally calculated on the higher of the declared purchase price and the official cadastral reference value (valor de referencia), which is determined by the Spanish tax authorities based on market data.
When taking out a loan in Spain, is it necessary to have the documents translated into English?
This is not for the purpose of reviewing your application, but the key documents (bank offer, FEIN, disclosure statement) must be understood by the buyer. If you do not speak Spanish, the bank will require a sworn translator, unless you are assisted by an international estate agent who will ensure that you understand all the terms and conditions.
Is there a legal delay between the offer and the signing?
Yes. The FEIN (European Standardised Information Sheet) must be provided at least 10 days before the signing of the mortgage deed (14 days in Catalonia). A transparency act before a notary is also required at least 1 business day prior to the final signing.
Do I need to have my documents translated into Spanish?
Not necessarily. Most banks accept documents in English, particularly proof of income, assets and identity, provided they are clear and complete. However, your marriage contract may need to be translated into Spanish.
Does the bank finance the purchase costs?
The purchase costs—such as Property Transfer Tax (ITP), the notary fees for the sale, Land Registry fees and other related expenses—remain your responsibility, as does the property valuation fee. However, under current Spanish law, the bank generally covers the costs associated with setting up the mortgage, including the notary, Land Registry and administrative processing fees for the mortgage deed.
What is the minimum down payment required?
Spanish banks generally finance up to 70% of the property’s purchase price for non-residents. The remaining 30%, plus all purchase-related costs, must be covered with your own funds.
How is the maximum loan amount (LTV) calculated?
Unlike foreign banks, Spanish banks apply a strict loan-to-value ratio (LTV). The value used is not necessarily the purchase price: it is determined by an independent valuation carried out by an appraisal company approved by the Bank of Spain. This valuation is mandatory when applying for a mortgage in Spain. This is why professional guidance is so important: an experienced mortgage adviser can help you structure your financing according to your profile and local banking practices.
Is it mandatory to use a mortgage broker in Spain?
No, but it is strongly recommended, particularly if you do not speak Spanish or have never taken out a mortgage abroad. A mortgage adviser specialising in non-resident financing in Spain: understands the banks’ internal lending policies; negotiates the most suitable interest rate and terms on your behalf; anticipates potential legal and language-related issues; and secures the entire mortgage process through to completion before the notary.
Can we deal directly with Spanihs banks as a non résident buyer ?
Yes, but it is not recommended unless you have perfect knowledge of the Spanish banking system. Each bank has its own criteria, forms, and requirements. A dedicated intermediary will save you valuable time and reduce the risk of mistakes or refusals.
Is a fixed rate available?
Yes, Spanish banks offer fixed-rate mortgages, although they are generally less competitive than variable or mixed-rate mortgages, which are usually linked to the six-month Euribor. However, a fixed rate can provide valuable security over the medium to long term, depending on your profile.
How long does the full process take?
On average, 5 to 8 weeks from submitting the application to signing the mortgage. The timeline may vary depending on the bank’s responsiveness, the complexity of your file, and the region where the property is located.
