FAQ
Does the signing of the sales agreement take place at the notary’s office?
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? ?
Both are private contracts and do not require the involvement of a solicitor. Once you have found your dream home, the estate agent or the seller may ask you to sign a contract known as a ‘reservation agreement’; this contract ensures that the property is reserved for you and taken off the market. You will need to pay between €1,000 and €3,000, and it is at this stage that the seller or agency must provide you with the necessary property documents to verify the property’s legal status and prepare for the drafting of the preliminary sale agreement, subject to the outcome of this verification. This contract must also be drafted and reviewed by an expert.
Which documents should you request from the seller to verify the legality of the property?
Before signing a sales agreement, it is essential to obtain:
- Nota Simple completa: pièce d’identité du bien espagnol,
- - Proof of paid IBI (property tax),
- - Occupancy certificate (Cédula de habitabilidad),
- - Escritura: copy of the seller’s deed of ownership,
- - 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 must:
- Be trained in Spanish real estate law, - Be registered with the Spanish Bar (colegiado), - Be independent from the real estate agency, to defend your interests and 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 deed of sale, - Pay the taxes related to the purchase, - 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?
Ils varient selon la région et le type de bien, mais représentent généralement 8% à 13 % du valeur cadastrale ou celui d reference , incluant :
Inheritance Tax (ITP) or VAT on the purchase of a new-build property; Notary fees; Land Registry fees; Solicitor’s fees and, where applicable, an estate agent’s fees, which should be budgeted for
Do I need to open a bank account in Spain?
Yes. It is mandatory to:
Pay local council charges and taxes; Settle bills (water, electricity, etc.); You may receive funds from a mortgage, but you can do this once you have found the property
Do I need to be physically present in Spain to buy?
Not necessarily. You can sign a power of attorney (poder notarial) through a Spanish solicitor (with legalisation/apostille). Your solicitor or representative can sign on your behalf.
Which taxes will I pay after the purchase?
- IBI (local property tax): annual, based on cadastral value, - IRNR (Non-Resident Income Tax): even without rental, a deemed income is taxed, - If you rent the property, you will pay taxes on the rental income, often with deductions if you are an EU resident.
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 tax you pay when you buy an older property; it is calculated based on the reference value—set by the government to reflect the market price—rather than the cadastral value, which is generally lower.
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, especially proof of income, assets, and identity, provided they are clear and complete.
Does the bank finance the purchase costs?
The costs related to the property purchase (ITP tax, notary fees for the sale, etc.) remain your responsibility. However, some banks cover all or part of the mortgage-related costs: valuation, mortgage registration, notary of the loan, etc.
What is the minimum down payment required?
In general, Spanish banks finance up to 70% of the purchase price for non-residents. The remaining 30% plus fees (around 10–13%) must be covered with your own funds.
How is the maximum loan amount (LTV) calculated?
Unlike French banks, Spanish banks require a strict ratio between the loan amount and the property’s value (LTV). This value is not always the purchase price: it is the appraisal made by a bank-approved expert (*tasador*). That’s why being assisted is important: a competent intermediary will help you structure the loan according to your profile and local banking practices.
Is it mandatory to go through a mortgage broker?
No, but it is highly recommended, especially if you do not speak Spanish or have never borrowed abroad. A mortgage broker specialist for non-residents in Spain: - Knows the banks’ internal policies, - Negotiates the best rate and conditions for you, - Anticipates legal or language pitfalls, - Secures the entire process through to the notary.
Can I apply on my own?
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, some banks offer a fixed rate, but it is generally less competitive than the variable rate, which is indexed to the 6-month Euribor. It remains an interesting safety option in 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.
