In the past few years the Spanish red tape has improved a lot, for instance previously you could arrange things only face-to-face, in addition you could have been able to purchase with power of attorny regarding the whole procedure. To this day it broadened with additional cases and became smoother. One of them is getting the NIE (with valid reservation contract), the other one is to open a bank account without personal attendance apparently with mandate, however it is only available with one brand.
Let’s get down to the process of purchase:
1.) Even if you want to buy a property of any sort the first thing you have to solicit is the NIE number. (The NIE is your all-purpose identification and tax number in Spain.) This is one of the things which has changed. Nowadays you are already able to apply for it at the Spanish embassy in Budapest in case of having a reservation contarct. It costs only 4000 HUF and it will be issued in a month.
2.) Openning a Spanish bank account.
The down payment can be payed from another country’s account, however larger part of the purchase price shall be transfered from a spanish bank account upon contracting.
In the previous years a some brands fused, a few of them got weaker, some of them got out of it stronger. Currently, we highly recommend La Caixa bank, on one hand it is the most stable brand out there, on the other hand it is the most “European” Spanish bank based on our experiences. Some things wich would take way longer at other branches, with La Caixa it is not more then a few days waiting, but anyway we reckon that it is far smoother with “our” branch.
Obviously, everyone is free to choose their own bank, but based on the observations and having our own accounts their we believe it is truly worth opting for that one.
Applying for mortgage for non-residents is feasible up to the 50 – 70% of the price, and the instalments payable cannot exceed 20% of the monthly income. For residents 80% of the full price may be given.
Getting loans in Spain in corporate form is not advisable, conversely as private individual it is.
3.) For the sale and purchase the verification of the money’s origin is inevitable. Especially when it comes to properties at a higher price. Here in Spain they take the measures very seriously against money-laundering ,If the money is from another sale of a property then its contract has to be shown, furthermore tax clearance certificate can be requested by the branch back to 2 years. But more on these details later on…
4.) Which is not uniform is the translation. At La Caixa it is okay if you submit an English certificate, or even not an official Spanish one. We can help with it either way…
The rest of the banks can request official certified translations. If so, ONLY & EXCLUSIVELY translations issued by the accredited translators of the Madridian embassy are accepted.
5.) When the property has been choosen and the reservation has taken place, you have to travel to Spain except an authorized representative has been mandated who can act on behalf of the potential buyer.
6.) The last and the largest part of the purchase price cannot be payed in cash or bank transfer. On the previous or the actual day the bank issues a check (this has a percentual fee, that would be credited if upon the date of issuance of the check the buyer concludes a home insurance) which has to be taken to the event of the purchase.
7.) The contracting takes place in the presence of a notary, however anyone can bring a lawyer if they want to.
8.) Once the constract is signed in front of the notary the seller receives the check and the property is entered in a register immediately and the fact of the sale is determined.
9.) Aftwerwards service providers has to be transfered to the buyer and taxes and dues shall be payed. (whitin 3 weeks, certainly we can provide assistance with that as well.)
The taxes take up approximately 10%, dues are around 2-3% plus admin fees, and notary, etc.