"We’ll make buying really easy for you"

Buying your Bargain Home in Nerja

Rest assured, through our offices in Nerja and the UK, Nerja Bargain Properties will assist you all the way to complete the hassle-free purchase of your home in Nerja.

For your information, here is an explanation of how it all works.

Once you’ve chosen your dream home in Nerja, we’ll make sure that the vendor has the correct escritura (property deeds) to verify that the property they are selling definitely belongs to them. You may also be asked to pay a small deposit to have the property taken off the market.

Then you will need to:

  1. Appoint a local Spanish lawyer (abogado) to oversee all of the legal work. We can help you by recommending lawyers who we know and have worked with before.
  2. Obtain a NIE number (Foreigner's Identification Number) from a local police station. One of our Spanish speaking colleagues will go with you to help with the process and the translation. A NIE number is mandatory to buy and sell property in Spain and for other legal transactions.
  3. Open a bank account. We’ll explain the difference between the different types of banks: national banks and "cajas" (Building Societies). Again, our Spanish speaking colleague will accompany you to help you choose a bank.
  4. Consider opening a Skype account so we can exchange free telephone calls with you when you return home and to forward any documentation.

OK, now you’re set up.

The next stage will be for the vendor’s lawyer to draw up a Private Contract for the purchase of the property (Contrato Privado de Compraventa) with copies given to you and the vendor. This will set out the agreed price, exact property description, the form of payment, time scales and any penalty clauses etc. This is usually valid for 30 days after signing but may be extended by mutual agreement.

On signing the contract, you will be expected to pay a deposit, usually 10% of the purchase price less any initial deposit you may have paid.

During the 30 day validation period, your lawyer or agent will obtain a ‘Nota Simple’ and will carry out other relevant background checks to ensure that the vendor is the legitimate owner, that there are no debts attached to the property and that all bills for community charges, electricity, water and rates, etc. have been paid and are up to date.

If you require assistance with obtaining a Spanish mortgage to buy a property, please let us know as soon as possible so that we can explore the best lending opportunities. Foreigners may be able to obtain a mortgage of up to 70% of the value of the property which will be secured on that property.

When the background checks have been done and you’re happy with the result, and the money for the purchase is in place, you’re now ready to go to completion.

This is all done at a local Notary’s office where you, the vendor, the agents and the lawyers representing each party all gather to sign the Escritura de Compraventa (Title Deed) and where you will pay the balance of the agreed purchase price. Again, we will accompany you to ensure that you fully understand the proceedings.

A number of other costs are also payable at this stage.

  1. The notary’s fees for drawing up the escritura and overseeing the signing are dependent on the value of the property and the complexity of the deed, but should be between 0.2% – 03% of the value.
  2. Your escritura will need to be registered with the Spanish property registry office to legally make you the owner of the property. Their fees should be no more than 0.2% of the property’s value.
  3. You’ll need to pay the IVA (Spanish VAT) which is currently 8% of the declared value of a resale property. An extra 1% is payable when buying new property.
  4. You’ll also be required to retain 3% of the declared value of the property to ensure that the vendor pays any capital gains tax and pay this over to the Spanish tax authorities. Your lawyer will usually handle this for you and you can claim this back at a later date.
  5. Finally, but probably later on, you’ll need to pay your lawyer’s fees which will vary depending on the complexity of the transaction.

So, to summarise, you’ll need to allow around 10% for these costs on top of the purchase price.

Please note: We’ve deliberately kept this ‘buying’ information as brief as possible to avoid confusing you and will endeavour to keep it up-to-date. However, this information is purely of an informative nature and does not in any way represent qualified legal advice by Nerja Bargain Properties. You should always seek qualified legal advice to ensure that you act within the law and to avoid costly mistakes on your part during the property buying process.

For more useful property information, property news, property guides, recommendations, commentary and insight, visit our Nerja Bargain Property blog.