Buying a property in a foreign country is a big step, and can be an intimidating process in Spain, due to the authorities’ love of paperwork. At the legal level, buying a Spanish property consists of a specific process and compliance with a series of requirements according to Spanish law. It’s important to have a basic knowledge of the buying process and the costs involved before you purchase a villa or apartment.
To close the sale, the transfer of ownership is notarized. Both parties provide the requested documents (identification document, title of ownership, payment, etc); and finally, the contract is signed and authorized by the notary.
Once the taxes have been paid, the property is registered in the new owner’s name and the utilities can are transferred. Upon registration in the Property Registry, the buyer becomes conclusively the owner of the property.
The Impuesto Sobre Bienes Inmuebles is a property tax issued by the municipal entity in which the property is located. It is usually between 0.5% and 1.1% of the cadastral value of the property.