The process of buying a property in Ibiza

Before starting with the purchase of a house or apartment in Ibiza, it is indispensable and compulsory for non-resident buyers in Spain to obtain a tax number (identification number of foreigners), also called NIE.

Step 1 – Viewing, choosing, offering, negotiating

         Decide what you are looking for :

First of all you have to decide your buying criterias. Do you want a house or an apartment ? attached or independant ? With or without garden ? With sea view or countryside view? Better in the southwest coast or the north ? Do you prefer to be close to Es Vedra or to the clubs? etc…

         How to search? :

Once your criterias are clear enough, you can start searching. For this you have different options :

                     – You can ask an agent to search a property for you : In this case you will have to give a clear list of criterias to your agent and he will search for you, first on his own portfolio, on his partners portfolios and also “on-ground”. Once he has a selection of 4-5 properties corresponding to your research he will come back to you to offer to view them. This is the most effective way to search for your dream property as you will save a lot of your time, receiving directly a pre-selection corresponding to your wishes instead of having to search within the whole amount of properties for sale in Ibiza. Don’t hesitate to contact BestOf Ibiza Properties for your property hunting!

                     – You can also search on real estate platforms like Idealista, Habitaclia and many others : On those platforms are the properties from most of the agencies. Be aware ! These are platforms, not agencies. When you enquire different properties on one same platform you are most likely contacting different agencies and not only one.
This option is good if you want to control your research but you will need to dedicate a lot of time to it as many properties are more than one time, and often with different prices as not all the agencies are updating often enough their properties. Also, you will have many different interlocutors, sometimes serious agents, other times direct owners and if you have bad luck, non-serious agents. Going through those platforms you will not have control on who you will work with.

                     – The last option is to search the best rated agencies of Ibiza and contact them one by one. This option will be the one you have the most control but also the most time-consuming.

         Make an offer, negotiate and come to an agreement

Once your choice is made and you have visited the properties of your selection and chosen the one of your dreams, you have to make an offer
The agent then contacts the owner to inform him of the offer and know his decision. The seller can: accept the offer, reject the offer, or make a counter-offer.
Then, terms and conditions of the sale are negotiated, such as furniture included in the price, dates of signatures etc …
This is a non-binding process and does not legally obligate you to continue with the purchase if you change your mind.

Step 2 – Arras Contract and deposit

When buyers and sellers agree with the price of the sale and the conditions of the contract, it is necessary to write a private Purchase Agreement, also called the Arras contract, specifying all the details of the property, the details of the buyers, the sellers, as well as all previously negotiated conditions.
This contract becomes legally valid with the buyer transferring the 10% deposit of Arras to the bank account of sellers. Once the transfer is done, the property has to be reserved exclusively to the buyer until the signing date of the public deed at the notary.
This contract mentions that in case the buyer breaches the contract, the deposit is lost. In case the seller breaks the contract, he must return to the buyer twice the amount received on deposit.

Step 3 – Public Deed

At this stage, it becomes mandatory for non-resident buyers to have a Spanish tax identification number (NIE). You have to ask for it to the closest spanish council to your home town. It usually takes around 1 month to be sent so better to order it as early as possible.
The balance of the sale price is paid before a notary on the day of the signing of the Deed, by means of a bank check or immediate transfert. In order to be able to pay the different ownership taxes, it is mandatory for the buyer to open a spanish bank account.

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