There are two main ways of buying your property in Spain. As a resale or a new development.
The process for each is slightly different.
Purchasing New Developments or Off Plan
How do I buy the property?
Purchasing an unbuilt property (or off plan) is a popular method of buying a home in Spain
for many reasons. Many investors use this method of purchasing property prior to it being built
and then reselling their option on this property prior to completion and making a healthy profit
in the process! (For more information on this process please contact our investment specialist on 0871 473 6090 or investment@fuenplaza.com).
It is also a great way of buying a property "in advance" and paying for it over a period of about 2
years. This often enables purchasers to buy a better property than they had originally thought possible.
Reservation agreement
Having chosen an off plan property and being happy with the payment methods the developer is
offering, it is normal practice in Spain to place a reservation deposit. This is usually between 3000 €
and 6000 €,depending on the developer). This secures your property, legally removing the property from
sale and most importantly freezing the purchase price throughout the build period.
This reserve payment can be made directly to the developer, through your solicitor or via
Fuenplaza, the choice is yours.
Private Purchase Contract
The next stage is the Private Purchase Contract, at this stage it is usual to pay about 30%
of the purchase price (although this can also vary according to the developer).
Most developments will also allow you to resell your interest in this property after
signing this agreement and before the property is built or goes to completion. The advantages
of this are that you will still receive all the profit from the resale of this property.
(Some developers charge a small commission for this transaction ca 1 - 1.5%).
Depending on the developer, usually you will not have to pay anything further until
completion of your property and the majority of this amount will normally be covered by a
developers mortgage.
Some developments may have a stage payment plan throughout construction.
Is my money safe?
Absolutely! Despite all the horror stories you will undoubtedly hear about Spain, all
money you pay to a developer is 100% guaranteed!
Every developer that we at Fuenplaza deal with, has to provide full bank guarantees for
all our clients money. This guarantee ensures that in the extremely unlikely event that
there are any problems with your chosen development you will receive ALL your money back
plus interest at a rate of 6% per annum.
What are the costs on top of the purchase price?
Unlike most real estates agents in Spain we won't hide anything from you. That includes
the taxes and fees buying a home in Spain incurs. Most of these are small, a few hundred
euros but you need to be aware of just what you are paying and too whom.
The total amount on average to be paid in fees and taxes is around 8% of the total purchase
price but, to be on the safe side work on 10% and you will receive some change!
find your dream home here
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