1. New Build Properties

a) Turnkey Properties

This type of property is fully completed and ready for delivery. The typical payment process is as follows:

• Reservation: An initial payment of between €3,000 and €10,000 to secure the property, usually via bank transfer.
• Purchase contract: Between 10% and 30% of the total price, paid via bank transfer or SEPA, typically 2 to 4 weeks after the reservation.
• Deed signing and key handover: The remaining balance is paid upon signing the public deed before a notary, usually via a nominative bank check or a transfer through the Bank of Spain.
• If the notary signing is delayed by more than 3 months, developers often require a higher payment at the contract stage (usually around 50%).

b) Properties Under Construction

If construction has already begun, payments in the purchase contract are typically staggered:

• Reservation: Between €3,000 and €10,000.
• Purchase contract: Between 10% and 30% of the price is paid within the first month after reservation.
• Payments during construction: Can be made in one or several installments until reaching approximately 50% of the property’s total price.
• Final payment at the notary: The remaining amount is paid upon signing the deed, using a nominative bank check or a transfer via the Bank of Spain.

c) Pre-marketed Property Pending Construction License

This case applies when all documents have been submitted to the local authorities, and the project is awaiting approval for the construction license. While most of the project is defined, there may still be some modifications. Therefore, an additional pre-reservation payment is usually included in the payment structure.

• Pre-reservation: A first payment, usually around €3,000, which is often refundable.
• Deposit contract or option to purchase: Signed once the construction license is obtained, from which point the payment schedule follows the same structure as properties under construction.
• Construction commencement: Installments are paid as the construction progresses.
• Delivery and deed signing: The final payment is made at the notary using the same methods mentioned earlier.

d) Self-Build (Autopromotion) Property

In this model, the buyer first acquires the land and then pays for the construction of the property. Payments are made progressively as the construction advances, and financing from a bank is also possible.

• Land purchase: Must be paid in full upfront.
• Payments to the construction company: The initial costs include the preliminary project design and the necessary administrative procedures to obtain the construction license. Once the license is obtained, payments are made according to the progress of the work, with construction certificates validating each phase before the next payment is disbursed.
• Final payment: The last installment is paid upon completing the construction and obtaining the habitation certificate, usually upon signing the property deed. This amount is often much smaller, as typically only 5% to 10% of the total price remains unpaid at this stage.

2. Second-Hand Properties

The purchase process for a second-hand property follows a different payment structure:

• Reservation: An initial payment to secure the property, usually around €3,000. However, if the seller has all necessary documentation available, the process can move directly to the deposit contract.
• Deposit contract (Contrato de arras): Around 10% of the total price is paid a few days after the reservation, once essential documents such as the land registry report have been obtained.
• Public deed signing: Typically completed within a maximum of 3 months, unless otherwise agreed. At this stage, the remaining amount is paid, usually via nominative bank check or a transfer via the Bank of Spain.

Important Considerations

• If the property has outstanding debts or mortgages, two separate payments may be made to ensure debt cancellation before the purchase: one payment to the bank for the outstanding amount and another to the seller for the remaining balance.
• If the seller is a non-resident, a 3% withholding tax may be applied to ensure payment of any outstanding tax liabilities.
• Property tax (IBI) and waste collection fees are usually prorated between the buyer and the seller based on the period of ownership within the fiscal year.

Common Payment Methods When Buying a Property in Spain

The most widely used payment methods for property purchases in Spain include:

• Bank transfer: The most common option, especially through the Bank of Spain for high-value transactions.
• SEPA transfer: A standardized payment method within the Eurozone, offering fast and automated processing.
• Bank transfer via the Bank of Spain (OMF - Order of Fund Movement): This method is managed through the Bank of Spain and allows same-day transfers if executed within the designated hours.
• Nominative bank check: Guarantees fund availability and is widely accepted at deed signings. The check must be a nominative Spanish bank check, ensuring an instant transaction.
• Card payment: Less common due to transaction limits and fees. However, some developers accept card payments for reservations, typically for amounts under €10,000.

Each transaction may vary depending on the seller (whether an individual or a company), their residency status, the financial institution involved, and the property price. It is strongly recommended to seek professional advice before finalizing a purchase.

Gestalihome collaborates with various banks that offer favorable conditions for transfers, helping clients save significant amounts on fees and associated expenses.