Eight Tips on Buying Off-Plan in Spain

Raymundo Larraín Nesbitt, July, 1. 2018

By Raymundo Larraín Nesbitt
Director of Larraín Nesbitt Lawyers
1^st of July 2018

The sales season is upon us.

Whether you are looking to buy as an investment or for pleasure, now is the right time to dip back into the Spanish market. Low prices and cheap mortgages won't last forever.

Property prices in Spain (confirmed sales) jumped by almost 10% in the 1Q 2018.
The overall number of house sales increased 23% year-on-year in January 2018.
The construction sector in Spain has increased 6% year-on-year on the 1Q 2018. This explosive surge in growth is unprecedented since the year 2001.

Brick is back. Can you afford to miss out on your dream home?

8 Tips on Buying Off-Plan in Spain

Hire a qualified registered lawyer (Abogado)

Don’t be in a rush to hand over your money without having hired an independent lawyer first; do not allow yourself to be pressurized by intermediaries. Rash decisions often turn out to be expensive mistakes in life.

Our law firm has over 16 year’s conveyancing experience at your service. You can read further here: Buying Property in Spain – 10 reasons to hire a Lawyer

Plot of land under a developer’s name

One should never buy an off-plan unit in a land that is still not registered under the developer’s name. There are far too many associated risks to take a gamble with your hard-earned money.

Building Licence

This is by far the biggest mistake that a buyer can possibly make. Many problems could easily be staved off on following it. The Building Licence will ensure that the building is above board and the property is not being built in green belt land, for example.

Bank Guarantees

A bank guarantee is of critical importance, acting as a safety net securing all your stage payments, should the developer fail to complete your property.

Licence of First Occupation

A Licence of First Occupancy is a certificate issued by a town hall that confirms that a newly-built property fully complies with all planning and building regulations and is ready to be used as a dwelling.

In general, I advise you not to complete without a Licence of First Occupation.

NIE number

A NIE number is a Fiscal Identification Number for foreigners and is required, among other things, to buy property in Spain.

You can attain a NIE Number through us in only 3 days.

Snagging list

Before you complete on a newly-built property you should always do a snagging list of the property. You can either draw up a snagging list yourself or else appoint one of the many reputable companies that may carry it out on your behalf.

Post-completion: dealing with property taxes, utilities, community fees & other

Once you have acquired your new Spanish property, you will have to face all the associated running expenses. Make sure you have carefully budgeted for this to avoid unpleasant surprises!

We offer the most competitive fees in the market.

Conveyancing – Buying from €995

We are specialized in conveyancing

Larraín Nesbitt Lawyers, small on fees, big on service.

Larraín Nesbitt Lawyers is a law firm specialized in conveyancing, inheritance, taxation and litigation. You can contact us by e-mail at info@larrainnesbitt.com, by telephone on (+34) 952 19 22 88 or by completing our contact form.

Legal services Larraín Nesbitt Lawyers can offer you

Conveyancing – Buying from €995
Conveyancing – Selling from €795
Non-Resident Income Tax (Fiscal Representation) from €90/year
Holiday Rentals Accounting Service (HRAS) from €100

Off-plan-related articles

Buying Off-Plan Property in Spain – 8th of June 2013
House Hunting in Spain – Interview with The New York Times. June 2015
Resurgent Spain: Málaga Sees Strong Sales – Interview with Mansion Global (The Wall Street Journal). December 2015
Buying Property in Spain from a developer (Off-Plan Property) – 8th March 2017
How to inspect an off-plan property overseas – Q&A with The Sunday Times. July 2017
Buying Property in Spain – 10 Reasons to Hire a Lawyer – 8th November 2016
Non-Resident Taxes in Spain – 8th December 2015
8 Tips on Buying Off-Plan in Spain – 8th June 2018

Please note the information provided in this blog post is of general interest only and is not to be construed or intended as substitute for professional legal advice. This article may be posted freely in websites or other social media so long as the author is duly credited. Plagiarizing, whether in whole or in part, this article without crediting the author may result in criminal prosecution. VOV.