Buying a house in Costa Blanca North or South of Spain
Buying a house in Costa Blanca? Buying a house on the Costa Blanca (Spain) can be very time-consuming. The purchasing process is also different than in the Netherlands and Belgium. We have made a summary of the most important steps.
Buy House Costa Blanca | The Search in Spain
The Netherlands and Belgium have several portals to look for houses for sale. These provide a lot of good information about the purchase offer.
There are also property portals in Spain. Unfortunately, the quality of this cannot be compared with portals in Belgium or the Netherlands.
These portals give you an initial idea of the range and prices . However, it is not sufficient to simply schedule viewings via the portals because:
- The same house is often listed several times. Each time with a different description, photos and sometimes even a different price. This can lead to conflicting information and therefore confusion.
- The information is not always up to date. Houses that have been sold for a long time also remain on the site.
- The exact addresses are not mentioned on the websites.
Buy House Costa Blanca | Purchase Broker
We advise you to engage one (purchase) broker when purchasing your house on the Costa Blanca South or North. You then have one point of contact. MedVilla organizes the entire search process for you from start to finish. We know the area, the market, the procedures and have a local network. An additional reason to choose a purchasing agent instead of doing all the work yourself is that it costs you nothing extra . You can find our range of resale homes or new-build homes in Spain via the links.
Buy House Costa Blanca | Reservation contract
Once you have found the right house, the negotiation starts. This is done via the brokers. Your Dutch-speaking recognized real estate agent from the BIV (Professional Institute of Real Estate Agents) will advise you on the market value of the house and the negotiation strategy. Ultimately, you decide for yourself what an acceptable price is for you.
If price agreement is reached, a reservation contract will be drawn up. This is a short contract with which the buyer and seller confirm that they have reached an agreement. The buyer also pays a reservation fee. This is usually between €3,000 and €6,000. By signing this contract, the seller undertakes to withdraw the property from sale and not to start new negotiations.
The reservation contract also agrees on a period within which the purchase contract must be signed. During the set period, the buyer has time to do his research and the contents of the more extensive purchase contract are discussed. This is usually 2 to 3 weeks.
Buy House Costa Blanca | Role Notary and Lawyer/Gestor
The necessary checks are carried out during the reservation period. You can do this yourself or outsource it to a lawyer or gestor. We recommend that you hire a lawyer yourself.
Unlike in the Netherlands or Belgium, a lawyer is indispensable when buying a house in Spain. This is mainly because the notary has a small role in Spain. Still a crucial one. He witnesses the signing of the deed of sale. The noitaris determines who owns the property and checks the identity of the parties. But that's it. He does not investigate the house for, for example, outstanding debts, mortgages or attachments. Even the registration in the property register does not fall under the duties of the notary. These are matters that a lawyer takes on. Read our blog " Role of lawyer and notary in Spain "
Buy House Costa Blanca | Financing and/or building inspection
Unlike in the Netherlands or Belgium, reservations regarding financing (Mortgage Guidelines in Spain) and construction inspection are not common. These are usually not accepted as a reason for free cancellation of the reservation contract. It is of course possible to have a Construction Technical Inspection carried out. We can help you with this.
Buy House Costa Blanca | Research
Your lawyer or gestor will conduct the necessary investigation into the home. He requests information from the land registry and property register, the municipality, the tax authorities and the utility companies.
It often happens that the current owners have added property and never registered this with the land registry and/or property register. If this is the case, your lawyer will uncover this. Registration is usually still possible and this does not have to hinder the purchase.
This stage of the process is also used to prepare for your upcoming status as a homeowner in Spain. You need a NIE number and a Spanish bank account. MedVilla together with your lawyer will help you with this.
Buy House Costa Blanca | Purchase contract
The purchase contract must usually be signed within 2 to 3 weeks after signing the reservation contract (Sometimes the reservation contract is immediately a purchase contract... check this carefully). The purchase contract describes all conditions that were part of the agreement. When signing the purchase contract, the buyer usually makes a second down payment of 10% (minus the previously paid reservation fee).
Buy House Costa Blanca | Handover
On the agreed date, all parties appear before the notary. This is selected by the buyer. Your lawyer and (purchasing) agent are also present.
The deed is reviewed and explained. You have also prepared the payments with your lawyer. In Spain these are still done with cheques. After signing, checks and keys are exchanged and you are the new owner of your dream home in the sun!
Buy House Costa Blanca | Additional costs
On top of the agreed purchase price, you must take into account a surcharge of approximately 12% to 13% in additional costs. These costs largely consist of 10% transfer tax and 2% to 3% for notary, registration costs and lawyer.
New construction is subject to an additional 1.5% tax (stamp duty). Sometimes the costs for the connection to water and electricity are also charged separately.
When taking out a mortgage, there are additional one-off costs for mortgage tax, opening costs at the bank, notary costs and costs for mortgage advice. Read our blog " Costs when purchasing a home in Spain "
Buy House Costa Blanca | Yearly costs
In addition to the one-off costs when purchasing, there are also the annual costs:
- IBI. This is comparable to the property tax or a municipal tax on real estate.
- Rental value lump sum. This is paid through income tax.
- Basura (waste tax).
- Gas water and light.
- Contents, fire and buildings insurance.
- Maintenance of swimming pool and garden (privately or through service costs).
Also read our blog article about " Fixed costs after purchasing a house in Spain "
Buy House Costa Blanca | Management
Buying a house in Spain also comes with responsibilities. After the transfer at the notary, you are responsible for paying local taxes, utility contracts and maintenance.
Your lawyer will help you register with the municipality and transfer the contracts for gas, water and electricity. There are numerous companies available for garden and swimming pool maintenance. We would be happy to help you with this as well.
Buy House Costa Blanca | Rental
The Costa Blanca is a very popular location for tourists (and with good reason!). Renting out your home during the holiday periods is therefore a real possibility. Buying a house in Costa Blanca can result in a sustainable investment with a return for years to come. You can choose to do the rental yourself or outsource it to a professional company.
Finally, it is important to know that you need a Registration Number for rental and must pay tax. You can arrange this yourself or have it done through your lawyer.
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- You can reach us directly on 0032 2 342 10 61 from Belgium & 0031 207 45 00 27 from the Netherlands
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- Or even by simply completing the contact form
Please feel free to ask your question and indicate how we can assist you. If your question concerns a property, do not forget to mention the reference(s) or complete the contact form on the page of the property itself.