Summary
With the right guidance, buying property in Valencia is straightforward. However, it differs significantly from the process in other countries. First, you must secure your legal status and finances in Spain. This includes obtaining an NIE number and opening a local bank account. Next, conduct thorough legal due diligence on the property. Finally, finalise the purchase at the notary office and complete all tax registrations. A personal shopper will ensure that every step is executed efficiently and legally.
Step 1: Secure your Spanish identity and finances
This crucial preparatory phase must be completed before you start searching for properties. Without these documents, it will not be possible to formalise the purchase legally.
A. Obtain your NIE number
The Número de Identificación de Extranjero (NIE) is your Spanish tax identification number. It is mandatory for all financial and legal transactions. You can apply for one at a Spanish consulate abroad. Alternatively, you can apply at a police station in Valencia. We strongly recommend starting this process immediately.
B. Open a Spanish bank account
You will need a local bank account in order to pay deposits and taxes. It is also essential for the final property transfer at the notary. This account must be opened in Spain using your newly obtained NIE number. This will streamline all related financial transactions.
Step 2: Set your goals and start your search
Now that your legal preparations are complete, the search can begin. First, clarify your investment goals.
- Define your criteria: Set a clear budget and specify the desired neighbourhoods in Valencia.
- Access the full market: A personal shopper grants access to 100% of available properties. This includes listings from all agencies and private sellers. Consequently, your chances of finding the perfect match are increased.
Step 3: Property vetting and due diligence
A traditional search is insufficient in the Spanish system. Thorough checks are required to protect your investment. This is precisely where the expertise of an independent lawyer and your Personal Shopper becomes invaluable.
- Legal status sheck: We verify that the property is registered and free of charges (i.e. liens or debts).
- Community fees: We can confirm that all current community fees have been paid.
- Technical inspection: We recommend that the building’s structural integrity is inspected by an architect.
Step 4: Making the offer and signing the contract
Once a perfect property is found, swift, professional action is necessary.
A. The offer
Your personal shopper will submit a competitive and justifiable offer. They also handle all negotiations with the seller or their agent.
B. The Deposit Contract (Contrato de Arras)
Once an agreement has been reached, both parties sign the Contrato de Arras. This legally reserves the property for you. A deposit is typically paid at this stage, usually amounting to 10% of the purchase price. If you withdraw, you will lose the deposit. If the seller withdraws, they must pay back double the deposit.
Step 5: Securing finance (if applicable)
If you require financing, this process will run alongside the due diligence.
- Non-resident mortgages: Spanish banks generally lend less to non-residents. You should expect to finance between 60% and 70% of the property’s valuation. Therefore, make sure you have at least a 30% deposit plus 15–17% to cover costs.
- Valuation: The bank will arrange for a formal valuation of the property to be carried out.
Step 6: Final signing at the notary’s office
Signing the Public Deed (Escritura Pública de Compraventa) finalises the sale. This is a formal legal ceremony.
- The notary’s role: The notary ensures that the transaction complies with Spanish law. They read the deed aloud to all parties involved.
- Final payment: The remaining balance is paid to the seller. You will also receive the official property keys.
- Ownership transfer: You officially become the new legal owner at this moment.
Step 7: Registering and paying tax after the sale
The process does not end with the notary. Several administrative and fiscal steps must be completed.
- Property Transfer Tax (ITP): In the Valencian Community, this tax is usually 10% of the resale property’s purchase price. It must be paid immediately after signing.
- Registry: The deed has been submitted to the Spanish Property Registry. This public registry guarantees your ownership rights.
- Utilities setup: You need to transfer the water, electricity and gas contracts into your name.
❓ Frequently Asked Questions (FAQ)
Foreign buyers should budget for an additional 15-17% of the property’s purchase price. This amount covers the property transfer tax (ITP), estate agency commission, notary fees, registry fees and legal fees.
No, the NIE is a tax and identification number. Furthermore, it does not grant you the legal right to reside in Spain for longer than the standard tourist allowance.
The most common cause of delays is the NIE application process and the difficulty of transferring large sums of money internationally. It is crucial to plan ahead.
The NLV is a standard residency permit for non-EU citizens. Provided you can demonstrate sufficient passive income (savings, pensions, etc.) to support yourself, it allows you to live in Spain without working.
