Spanish Conveyancing FAQ

Take a look at our Spanish conveyancing frequently asked questions (FAQs) below. If there’s anything we’ve missed, please get in touch with our friendly team.

Q: What does it cost to purchase a property in Spain?

A: The actual cost to complete a property purchase in Spain varies from municipality to municipality, but generally speaking, we’d recommend you set aside approximately 11.5 percent of the property’s purchase price to cover the official costs. This does not include any conveyancing fees. Any surplus will be returned to you promptly on completion.

Q: How much deposit will I have to pay?

A: Our contract stipulates a holding deposit of €3,000, which is paid to the vendor while we carry out our searches. If the searches uncover any details that mean the purchase is no longer feasible, the vendor is obliged to return your deposit within one month. If our searches are successful, you will need to pay up to 10 percent of the purchase price within one month. Completion then generally takes place within a further two months.

Q: Can you help me find a Spanish mortgage?

A: Yes. We work with a network of mortgage lenders across Spain and know where to find the best rates to meet the particular circumstances. You will need to bring the relevant documentation you would normally need to set up a mortgage, including:

• IDs for each applicant
• Proof of current address
• Proof of income for each applicant
• Bank statements for the previous three months

Q: What are the vendor’s costs?

A: The vendor is liable for the payment of ‘plusvalia’, a tax imposed by the local municipality based on the increase in the value of the land since the last purchase. We predict the value of the plusvalia and deduct it from the purchase price on your behalf.

The vendor is also responsible for the payment of a retention tax, which is currently 3 percent of the purchase price. Again, we deduct this amount from the property’s purchase price and pay it to the relevant authority on your behalf.

Q: What do I need to complete the purchase?

A: You will need a passport, a Spanish bank account and an NIE number. An NIE number is an identifying number much like a National Insurance number in the UK. We can help you set up an NIE number and a Spanish bank account if you need assistance.

Q: How do I make the various payments?

A: Your initial deposit should usually be paid in cash. For complete security and peace of mind, subsequent payments should be made by banker’s draft.

Q: How much will you charge to help me obtain my NIE number(s)?

A: We charge €50 per NIE number.

Q: How and when do I pay you?

A: You should make an initial payment of €250. If the purchase does not proceed due to unsuccessful searches, we will refund you €100. If the purchase proceeds towards a successful completion, we will ask you to pay an additional €250. This should be paid at least two weeks before your completion date.