Reviews about real estate agents in Spain

Spain as an attractive place to buy real estate

Spain has a permanent population of approximately 47,500,000 residents, making it the fourth-largest country in Europe.

Spain is a full member of numerous international organizations. The country has been a member of the UN since 1955 and is a member of the Council of Europe, the OSCE, the World Trade Organization, the Organization for Economic Cooperation and Development, the European Bank for Reconstruction and Development, and other organizations.

Spain is an economically developed country with a high human capital development index.

Economic prosperity is based on a developed industrial sector, agriculture, energy, finance, tourism, construction, and real estate sectors. The Kingdom of Spain is one of the most visited countries in the world, ranking second in Europe after France.

Tourism accounts for a significant 10% of the country's GDP. The annual number of tourists visiting the country exceeds 80,000,000. The majority of tourists (95%) are citizens of the United Kingdom, France, and other European countries. The tourism industry is well-developed in southern Spain, providing the country with nearly 1.5 million jobs. Spain's major tourist destinations include the capital, Madrid, Barcelona, ​​the Canary Islands, the Balearic Islands, and the Costa Blanca, Costa del Sol, Costa Brava, and Costa Dorada regions.

Spain is popular with beach lovers, who prefer the resort regions of Spain's Mediterranean coast. The main regions with predominantly beach holidays are Catalonia, Valencia, the Balearic Islands, the Canary Islands, Andalusia, and the Murcia region. Thanks to the long history of civilization on the Iberian Peninsula, it is home to a large number of historical, architectural, and cultural attractions. The main cities that attract history buffs are Madrid and Barcelona. In addition to these two major Spanish cities, 12 other smaller towns are listed as UNESCO World Heritage Sites. In total, there are 44 UNESCO World Heritage Sites in the country, which places the Kingdom of Spain in second place after Italy in this indicator.

The Spanish Real Estate Market

Significant interest in Spain from foreign tourists has led to growing demand for Spanish property from foreign investors. Many foreigners are interested in purchasing a second home in Spain's resort areas for temporary residence. Others are interested in the opportunity to participate in the lucrative short- and long-term rental business, which can yield up to 5% per annum.

The explosive growth in property acquisitions by international investors has led to a significant increase in property prices in major cities such as Madrid, Barcelona, ​​and Malaga, as well as in smaller Spanish cities, where demand has shifted from buyers who find it unprofitable to invest in significantly more expensive square meters. The majority of properties purchased in Spain are resale properties.

Despite the constant activity of dozens of large construction companies and hundreds of small developers in Spain, the supply on the Spanish real estate market does not match demand.

To purchase real estate, the participation of a notary is required; they verify the property documents, thus ensuring the legal integrity of the real estate transaction. Working with a real estate agent in Spain is optional, although it can save a significant amount of time. An experienced, professional real estate agent will help you find the best property within your budget and avoid unsuitable properties and unnecessary expenses.

In most regions of Spain, real estate agents are not required to be licensed, but in the most popular regions among foreigners—Andalusia, Catalonia, and Valencia—a real estate license is mandatory. The real estate agent's license number must be displayed in the office and also listed on the company's website. Many good real estate agents in Spain participate in professional associations, such as the Intermediary Real Estate Association (GIPE) or the Inmobiliary Property Association (APA).

The commission received by a real estate agent in the event of a successful real estate transaction is not regulated by law. The standard commission in the Spanish real estate market is between 3% and 7%, paid by the seller.

How to buy property in Spain

Steps of purchasing property through a real estate agency:

1. Selecting a suitable property;
2. Verifying property documents: the realtor verifies the ownership rights and ensures the property is free of encumbrances;
3. Signing a preliminary contract with a down payment (usually 10%);
4. Signing the main contract in the presence of a notary, registering the property in the Property Registry;
5. Paying taxes and closing the transaction.

The first step before purchasing real estate is obtaining a Foreigner Identification Number (NIE) for the potential buyer. This number can be obtained from the Immigration Department of the Spanish police or from the Spanish consulate in your home country.

To obtain this document, you must provide the Spanish authorities with your original passport, two photographs, receipts for payment of the state fee, and a completed EX-15 form. Obtaining an NIE can take up to several weeks, so it is best to begin the entire process well in advance.

The next step is opening a local bank account. This will be needed to pay for the property and any subsequent utility bills.

This step is convenient for the buyer, but not mandatory; the funds for the purchase of the home can be transferred directly to the buyer's bank account from abroad.

The next step is finding and reserving the desired property. The deposit is typically between €3,000 and €5,000.

After reserving a property, the realtor orders a property report from the cadastral register. This report contains information about the property's previous owners and any encumbrances currently imposed on it.

Particular attention should be paid to any outstanding obligations to the bank or municipality. If the report contains information about any impediments to the purchase of the property, the potential buyer receives the full deposit.

After the property inspection, the parties sign a preliminary contract (contralto de arras), which specifies information about the property, any obligations of the seller, and the buyer's obligations, such as the specific timeframe for the purchase. Upon signing the preliminary contract, the buyer transfers to the seller a sum of money equal to or greater than 10% of the purchase price of the property.

The notarial contract is concluded with the mandatory participation of a notary, who must conduct an additional inspection of the property for encumbrances and debts. Notary services typically cost between €500 and €1,000. The notary opens a separate file for each real estate transaction, which includes all documents related to the property. The parties meet at the notary's office on a designated date to sign the contract.

The parties may be represented by an authorized person, including a real estate agent. If the transaction involves a foreign buyer or seller, the presence of a translator is required; the average cost of such services is €100/hour + VAT. This is the last opportunity to amend the final document. Once the notary is satisfied that the parties agree to proceed with the transaction, they submit a request to the Property Registry to block any further transactions involving the property.

The parties then sign the documents. Immediately after the conclusion of the main contract, the buyer is obligated to pay the taxes and fees associated with the property acquisition, and the seller is obligated to hand over the keys and property documents.

Property Taxes in Spain

The amount of taxes a real estate buyer must pay depends on the type of property (residential or commercial) and the status of the property (new or resale). When purchasing a resale property, the buyer pays a transfer tax (impuesto sobre transmisiones patrimoniales), which averages 8% but varies significantly by region.

The highest tax rate is in Catalonia, where it is 10%. Purchasing new property from a developer requires the payment of VAT, which in all regions of Spain is 10% for residential properties and 21% for land or commercial properties.

Purchasing new property from a developer requires the payment of an additional tax—stamp duty (IAJD). This tax ranges from 0.5% to 1.5% in different regions of Spain.

The original purchase and sale agreement is sent by the notary to the Property Registry, where the documents undergo additional verification by government officials, after which the new property owner's rights are registered. The government fee for registration averages €400 to €700. The government registration process for a new property owner can take up to three months. Upon completion of the registration process, the new owner receives an extract from the registry, as well as the registered original purchase and sale agreement.

Real Estate Agencies in Spain

Several thousand real estate agencies, as well as individual real estate agents specializing in Spanish real estate, operate in Spain. A professional, experienced real estate agent helps clients navigate the complex Spanish real estate market, select the most attractive investment location, find a property that suits their budget and other criteria, and navigate the property acquisition process.

How to choose a reliable real estate agency in Spain

Criteria for choosing a reliable real estate agency:

• Reviews. Carefully read reviews of real estate agencies in the regions of Spain where you plan to purchase property. Pay particular attention to the agents' competence, responsiveness, and ability to effectively resolve issues.
• Experience. It's best to choose a real estate agency with many years of experience in the Spanish real estate market. This guarantees a high level of professionalism and the ability to provide high-quality services.
• Specialization. Many real estate agencies specialize in certain types of property (apartments, villas, commercial properties) or regions of the country. This specialization will simplify the search and speed up the purchasing process.
• Legal Support. Having qualified lawyers on staff at the real estate agency will be a great help in the real estate transaction. Legal support will reduce risks and increase confidence in the security of the transaction.
• Transparency. A good agency provides all the necessary information about the property, its own commissions, and the stages of the transaction.

The Spanish real estate agency BCN Properties was founded by three partners with extensive experience in residential and commercial real estate sales, property management, real estate investments, and retail chain development. The company's office is located in Barcelona.

Axis Property has been operating in the Spanish real estate market for the past twenty years. Its office is located in Madrid.

In addition to residential real estate, the company has extensive expertise in the commercial real estate market. Its services include property management. The company also works with clients interested in purchasing land.

The Spanish real estate agency Oi Real Estate specializes in luxury properties. The company has offices in Marbella, Barcelona, ​​Ibiza, and other regions of the country.

A notary is a key participant in the acquisition of real estate, additionally verifying the property documents and conducting the purchase and sale procedure, as well as entering information about the change of ownership into the Property Register.

To make a choice when buying real estate in Spain, you can check out the rating of developers in Spain. And if you are interested in a specific location, check out the real estate agencies in Barcelona.