Buying a property in Valencia: Your complete guide

Understand Your Objectives
Begin by clarifying your purpose: Are you seeking a vacation home, a permanent residence or an investment property? Valencia is renowned for its vibrant culture and affordability but it gets very hot and humid in summer and most of the locals escape for cooler climates. For investment, there is always a steady flow of international as well as domestic tourists looking for accommodation (Valencia is the nearest beach for those wanting to escape Madrid in the summer!).

Legal Representation
Engage a qualified Spanish attorney (abogado) early in the process. They will navigate legal complexities, perform due diligence and can act on your behalf through a Power of Attorney, streamlining tasks like opening bank accounts and signing documents.

Tax Identification Number (NIE)
Obtain a Número de Identificación de Extranjero (NIE). This is essential for all financial and legal transactions in Spain. This number is required for property purchases, banking and tax purposes (even getting a WIFI contract).

Visa Requirements
As a U.S. citizen, you can stay in Spain for up to 90 days within a 180-day period without a visa. For longer stays or residency, consider options like the Non-Lucrative Visa or the Golden Visa, which requires a minimum investment of €500,000 in real estate.

Budgeting
Account for additional costs beyond the property's price, typically adding 10–15% to cover taxes, notary fees and registration. For new properties, VAT (IVA) is 10%, plus a stamp duty (AJD) varying by region. There’s more information available from BBVA here.

Financing Options
Spanish banks offer mortgages to non-residents, usually financing up to 70% of the property's value. Interest rates and terms may differ from U.S. standards, so compare offers and understand the implications of currency exchange rates. Laura is our expert in all things finance related - being a registered Mortgage Broker. You can contact her here.

Open a Spanish Bank Account
A local bank account is necessary for mortgage payments, utility bills and tax obligations. Some banks may allow account opening from abroad, but often, a personal visit is required.

Define your criteria
Determine your preferred location, property type and essential features. Consider factors like proximity to amenities, public transportation and community atmosphere. In most barrios (neighborhoods) of Valencia, life is lived outside so be aware of viewing flats above bars and nightclubs…they may be closed during the day.

Engage Professionals
Collaborate with reputable real estate agents who specialize in assisting international buyers. They can provide valuable insights and access to listings that meet your criteria. We work with a number of professionals, you can get in touch with us and we can guide you to the best based on what you’re looking for.

Property Evaluation
Once you identify potential properties, conduct thorough evaluations. Request a "nota simple" from the Land Registry to verify ownership and check for any encumbrances or debts associated with the property. It’s not common to have a survey of a property beforehand in Spain, but we would recommend it. Many of the properties in the city of Valencia are old (some well over 100 years), building standards were different then and often walls are paper thin (helpful in the summer but a hindrance in the winter - keeping warm is difficult!) so it’s worth making sure you know what you’re buying (i.e. the bits you can’t see!): See more in the Legal Process section below.

Reservation Agreement
To secure a property, you may sign a reservation contract and pay a deposit (commonly €3,000–€6,000). This agreement typically holds the property for a set period while legal checks are completed.

Preliminary Contract (Contrato de Arras)
This contract involves a deposit, usually 10% of the purchase price. If the buyer withdraws, the deposit is forfeited; if the seller withdraws, they may owe double the deposit to the buyer. Ensure your attorney reviews this contract thoroughly.

Due Diligence
Your attorney will conduct comprehensive checks, including verifying property boundaries, ensuring no outstanding debts and confirming that the property complies with local regulations.

Survey and Inspection
Consider hiring a surveyor to assess the property's condition, especially for older homes or rural properties. This can uncover potential issues and inform negotiations.

Mortgage Approval
If financing, finalize your mortgage agreement. Spanish banks will require property appraisals and proof of income. Your attorney or mortgage broker can assist in coordinating these steps.

Notary Public
The final sale is executed before a notary, who ensures the legality of the transaction. Both parties sign the "Escritura de Compraventa" (deed of sale), and the remaining balance is paid.

Registration
Post-signing, the deed is submitted to the Land Registry, officially transferring ownership. This process may take several weeks, during which your attorney will handle necessary filings and tax payments.

Be aware, you will leave the notary with a piece of paper and nothing more! No keys or anything else. It’s an odd process but rest-assured it’s all above board. The transfer of keys will happen at a later date that your attorney and notary will inform you of.

Utilities and Services
Set up essential services like electricity, water and internet. Your attorney or real estate agent can guide you through this process.

Community Fees
If your property is part of a community or development, you'll be responsible for regular fees covering maintenance and communal services. One of the residents will be the President de la communidad and there may be an external party with secretary responsibilities. You’ll quickly become familiar with this once you start meeting neighbours in the stairwell or on the street!

Local Registration (Empadronamiento)
Register with the local town hall to access municipal services, including healthcare and education. This registration is also necessary for residency applications. You can find more information about this here.

Estate Planning
Consider drafting a Spanish will to address your assets in Spain, ensuring a smooth transition for your heirs and aligning with local inheritance laws. Your attorney will be able to assist you with this. Estate planning laws in Spain can be confusing, so it’s definitely wise to seek advice here.