Polish Real Estate Agency in Spain

Buying Property in Spain: A Step-by-Step Guide.

Buying a property in Spain is undoubtedly an exciting moment in life, which is why our clients’ expectations are our top priority! That’s why we begin the search for the perfect property by understanding our clients’ needs and budget. Every COSTA BROKER client receives a brief from us to fill out—a simple form in which they specify the most important parameters of the property. These include: location, type of property sought, available budget, type of financing (cash or mortgage), and the purpose of the purchase (investment property or for personal use). Additionally, we clarify requirements regarding the property’s size, number of bedrooms, bathrooms, presence of a pool, garage, and terrace. All information recorded in the brief will allow us to present you with selected offers that meet your search criteria. At this stage, you will be able to assess for yourselves whether the assumptions we’ve made are appropriate or not. This is an important phase of the work we carry out with you remotely, even before your arrival in Spain. From among the offers we present, you should select 2–3 properties that you’ll definitely want to see.

Reconnaissance visit – a perfectly planned stay in Spain!

We start by setting the date of your arrival in Alicante, as well as the length of your stay, which should be 2–3 days. Before you book accommodations on your own, we’ll suggest staying in one of the modern, fully equipped apartments in our portfolio. We offer special rates for our clients during their exploratory visit. After picking you up from the airport, we invite you to a meeting over coffee, during which we will present a detailed itinerary for your visit and a plan for viewing specific properties. Additionally, in addition to the properties you have already selected, we will include properties that we recommend to you as interesting and meeting your criteria.

Pre-purchase formalities.

Once we find a suitable property, we guide the client through the property purchase process in the same way every time. We follow transparent rules based on a specific procedure: reservation – opening a bank account – submitting an application for an N.I.E. number (you can read more about this in the SERVICES tab). The amount of the reservation deposit depends on the property’s value but is typically between €6,000 and €10,000. The deposit can be paid via bank transfer or by credit card at the developer’s sales office. Since you are in Spain, the next step is to visit a bank branch and open a bank account. This account is necessary to accumulate funds for the purchase of the selected property and to later pay rent and utility bills from it.

The final stage of your visit is to apply for an N.I.E. number.  You may authorize our lawyer to obtain this number on your behalf. To do so, we will go directly from the law firm to a notary to sign the power of attorney, known as a “poder.” You may also apply for an N.I.E. number at the Embassy of the Kingdom of Spain in Poland. The waiting time for the N.I.E. number will be up to 3 weeks, and the costs will be slightly lower than in Spain. While waiting to receive it, you will fund your Spanish bank account and make transfers by the deadlines specified in the reservation agreement.

For ready-to-move-in properties, known as “llave en mano,” the entire purchase process will take about a month. For properties currently under construction, this period will be correspondingly longer, depending on the progress of the project.

What is an N.I.E. number?

The N.I.E. number in Spain (Número de Identificación de Extranjero) is a personal tax identification number required to handle any legal, financial, professional, or social matters in Spain. This number is assigned once for life. It is required to obtain property ownership, pay taxes, sign contracts for electricity and water service, and purchase and register a car or boat.

How do you obtain an N.I.E. number?

You can obtain an N.I.E. number in Spain and in Poland at the following locations:

• At a National Police station in Spain (in the Foreigners’ Unit – Extranjeria), after scheduling an appointment (Cita Previa). After selecting a province (e.g., Alicante), select “Certificados UE.”
• At the Embassy of the Kingdom of Spain in Warsaw, in the consular section, by presenting a completed EX-15 application form along with the required documents.

To obtain an N.I.E. number, you must present the following documents:

• A valid passport or ID card (new) + 2 photocopies of this document.
• 2 recent passport-sized photos
• A completed EX-15 application form in Spanish
• You must also state the purpose of obtaining this document
• You must also state the purpose of obtaining this document, e.g., purchasing real estate, so it is advisable to already have a reservation agreement.

What does the N.I.E. number look like?

The N.I.E. number in Spain is issued by the National Police on a standard A4 sheet, which also includes your first and last name, date of birth, and nationality. Example: Y-12345678-R. The waiting period for the document is 1–30 days, depending on the number of applications submitted in a given location.

When submitting an application at the Spanish Embassy in Warsaw, the N.I.E. certificate is sent by email. The waiting time is up to 3 weeks.

As citizens of the European Union, we can apply for a mortgage to purchase real estate in Spain. Many banks offer mortgages to customers from other countries. To apply for a mortgage at a Spanish bank, you must already have an N.I.E. number. The amount of the mortgage granted to Polish citizens cannot exceed 60% of the property’s value. Of course, the bank treats each case individually, and the decision depends on the borrower’s specific circumstances. What Spanish banks pay particular attention to is the total ratio of monthly obligations to income. A safe approach is to keep total costs below 35%, including the mortgage payment for the home purchase.

The primary market

The real estate market in Spain generally differs from the real estate market in Poland. Many of you, when planning to buy property in Spain, ask yourselves the age-old question: should you choose the primary market or the secondary market? If you want to buy property, the answer to this question is fundamental. The new-construction real estate market in Spain is particularly distinguished by the standard of the completed property. When buying a property on the primary market, you receive a ready-to-move-in apartment. Among developers, it has become standard practice to deliver properties that are practically ready for occupancy. The kitchen is always already equipped with furniture and some appliances (sometimes even a full set). Bathrooms are always ready for use, and at an early stage of the project, you have the opportunity to choose tiles and flooring. In this situation, you only incur the costs of maintaining the property.

Secondary Market

The secondary market is a completely different proposition. When looking to buy a property on the secondary market, we must be prepared to undertake a major renovation. While we can renovate the apartment itself, we have little control over its infrastructure. This stems from property ownership and relates to the sale of the property. The new building code in Spain and the steady increase in property sales to buyers outside Spain have led to a growing preference for properties from the primary market.

Once we find a suitable property, we guide the client through the purchase process in the same way every time. We follow transparent guidelines based on a specific procedure: reservation – opening a bank account – applying for an N.I.E. number (you can read more about this in the SERVICES tab). The amount of the reservation deposit depends on the value of the property, but is usually between €6,000 and €10,000. The deposit can be paid by bank transfer or by credit card at the developer’s sales office. Since you are in Spain, the next step is to visit a bank branch and open a bank account. This account is necessary to accumulate funds for the purchase of the selected property and to later pay rent and utility bills from it.

The final stage of your visit is to apply for an N.I.E. number. You may authorize our lawyer to obtain this number on your behalf. To do this, we will go directly from the law firm to a notary to sign the power of attorney, known as a “poder.” You may also apply for an N.I.E. number at the Embassy of the Kingdom of Spain in Poland. The waiting time for the N.I.E. number will be up to 3 weeks, and the costs will be slightly lower than in Spain. While waiting to receive it, you will fund your Spanish bank account and make transfers by the deadlines specified in the reservation agreement.

For properties ready for occupancy (so-called “turnkey” properties), the entire purchase process will take about a month. For properties currently under construction, this period will be correspondingly longer, depending on the progress of the project.

When deciding to buy property in Spain, you’ll naturally need to keep taxes and fees in mind. Generally speaking, property taxes in Spain are higher than in Poland

1. 10% VAT – applies when purchasing property on the primary market. When choosing a property on the secondary market, you must also pay a 10% tax, though it differs only in name.
2. Notary fees
3. Stamp duty: 1.5% for non-residents.
4. Official land registry.
5. Contracts for utility services.
6. Legal firm service fees, which depend on the property’s value.
7. Costs of issuing promissory notes at the bank.
8. Fees related to a tourist license (if the property is intended for rental)
9. IBI property tax – a tax paid once a year to the Spanish tax office (SUMA)

If you are considering purchasing a property in Spain and are unsure how to calculate the total transaction costs, download the free calculator from our website to calculate the total costs of buying a property in Spain.

Signing the deed does not require you to be present in person. Before purchasing real estate in Spain, it is advisable to have the agent representing you arrange for a reliable and experienced law firm. When using Costa Broker’s services, you are always guaranteed the support of a Polish-speaking law firm that will handle all legal matters related to the purchase of real estate in Spain and, if necessary, represent you during the signing of the notarial deed or the sale of the property. They can also apply on your behalf for a tourist license, which is required to rent out the property.