What documents do I need to buy a property in Spain?

Now that you've found the property you want to buy in Spain, it is time to gather all the required documents to secure a mortgage. 

Though it may seem like a complex task, we will guide you through the details and explain exactly what you need to prepare for the bank.

What are the requirements for a non-resident to secure a mortgage for a property in Spain?

First and foremost, you must ensure that you have obtained the Foreigner Identification Number (NIE) and opened a Spanish bank account. These are two extremely important aspects to continue your home-buying process.

As a non-resident buyer, you can typically expect Spanish banks to offer mortgages that cover up to 70% of the purchase price or appraised value. This means you must contribute at least 30% in cash, and additional funds to cover taxes and related expenses.

It might be to your advantage to consider hiring legal representation to guide you throughout the process, as they can assist you with due diligence, finalizing the property purchase, paying relevant taxes and fees, and registering the property.

What documents are required to buy a property in Spain?

A significant step has been taken – you have found the property that fulfills your desires! 

Moving forward, besides the address and property’s value, you will need a series of documents to ensure a smooth and legal transaction:

#1. Nota Simple

This document provides a comprehensive property overview detailing its registered owner, description, purchase date, and land area. It also includes information about any registered charges or restrictions, outstanding debts, precise boundaries, intended property use, and shared communal expenses.

It should be less than one month old at the time of purchase and is always needed.

Nota Simple is issued by the Land Registry (Registro de la Propiedad) and can be requested from the seller of the property or directly from the registrar.

#2. Contrato de Arras

If a deposit has been paid on the property, you will require the Contrato de Arras. 

This preliminary contract safeguards the deposit and outlines the specific terms and conditions related to the sale. With the signing of the arras, the buyer commits to paying an initial reservation fee, typically ranging from 5% to 10% of the total purchase price.

The Contrato de Arras is a fundamental aspect of property purchasing in Spain and understanding its nuances can mean the difference between a smooth transaction and potential legal complications. 

Continue reading five essential recommendations to guide you when negotiating and signing the arras. 

#3. Contrato de Compraventa

After reaching a sales agreement, you will require either the Contrato de Compraventa or the Contrato de Encargo de Compra. This document is an essential part of the property purchase process, formalizing the buyer and the seller agreement.

This comprehensive document encompasses key details about the property and the conditions of the sale, including:

• Price and deposit
• Property description that will cover the property's square meters, cadastral number, address, and specific details from the land registry
• Debts and liabilities related to the property, such as existing mortgages
• License of occupation which is a legal requirement in some jurisdictions
• Furnishings and inventory (an annexed inventory of everything that is included in the sale, such as fixtures and fittings)

#4. Certificado de Tasación & Reporte de Tasación

If the property has been appraised, these documents will be needed. They provide a professional assessment of the property's value, which can be crucial for obtaining financing or ensuring that you are paying a fair price.

Typically, the bank that a customer selects offers to arrange this service.

Keep in mind that the above documents are just the core requirements, and additional documents or information might be necessary depending on the specific situation or local regulations. 

Manage your cross-border home-buying journey in one place with Homevest

Securing a mortgage often involves a complicated process of submitting documents to various banks. Homevest simplifies this process by offering a streamlined digital service.

By consolidating access to top non-resident banks on one platform, Homevest allows you to upload documents once and receive multiple offers.

With Homevest, finding the best mortgage becomes an efficient and time-saving experience.

Here's a document checklist to confirm that you have prepared all the necessary items for your mortgage application as a non-resident. 

Is everything in order? Assuming all necessary documents are in place, the next step is to schedule the signing of the deed. After getting the bank's approval that there's no financial risk, the last step is to sign the contract.

Sources used and checked in August 2023:

1. Nota Simple explained

We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.