When buying a property in Spain, the payment process is a significant issue. Below we have summarised all the important information for you.
How is the property paid?
In Spain, the property is paid on the day when the notarial deed of sale is signed at the notary’s office.
If the seller has his main residence outside of Spain, 3% tax is withheld from the notarial sales price. The buyer must pay this tax to the tax office.
Payment by bank confirmed cheque
This is the most common method of payment. The buyer provides a bank-confirmed cheque from his Spanish account with the name of the seller. The bank guarantees that the cheque will be cashed. This provides security for the seller.
If the buyer finances through a Spanish bank or the seller of the property is of Spanish nationality, this payment option is obligatory. In this case, the buyer bears the fees for issuing the bank-confirmed cheque. The seller bears the fees for cashing the cheque.
If a seller’s mortgage is cancelled, the cheque for the seller’s bank must be issued by a Spanish bank. When the notarial purchase contract is signed, the bank cheque is handed from the buyer to the seller. In particular cases, there may be individual deviations.
If you have any further questions regarding the the payment process in Spain, we are always pleased to assist you. Please, contact us!