When you find your dream property, a small deposit (usually €3.000 to €6.000) is required by a developer to reserve the property. A reservation document is drawn up which means that the property is taken off the market, and the purchase price is fixed. This reservation sum is fully refundable if the developers do not have their paperwork in order. Also, if the developers fail to acquire a building licence for the development, the funds paid will be returned. Normally at this stage our clients are introduced to a local lawyer (unless our clients have already secured a lawyer´s services) who will advise them on the entire purchasing process, in addition to arranging for the transfer of the monies required for the signing of the purchase contract.

Normally within 30 days, private purchase contracts are exchanged. At this stage your legal representatives will be required to hand over your first instalment of funds, usually anything from 20% to 50% of the purchase price.

Most developers follow a similar payment structure, the following is a typical example of the payment structure for a development with a two year construction period:

2-4% - reservation fee
10% - due upon signing of the contract (includes reservation fee)
30% - payments made over the two-year construction period
60% - final balance due

Prices are exclusive of 7% IVA (VAT equivalent).

During construction, some developer's payment terms require further payments to be made. Again, your lawyer will advise when these instalments are due

It is standard practice to expect to pay charges and fees of around 10% the cost of your purchase. Included in this 10% are the 7% IVA and the legal expenses previously mentioned. Other costs involved in your purchase will be stamp duty at 0.5%, land registry fees and notary charges. The payment of these fees and charges will be organised by your lawyer.

On the day of completion, the balance of the purchase price is paid, and you (or more commonly, your lawyer) will sign the title deeds for the property, and the keys will be handed over. Your appointed lawyer will have completed all the necessary legal searches and investigations on the property, ensured all legal guarantees for the purchase of the property are in place and that all the Spanish legal requirements have been met.