One of the most important issues when buying a property in Spain is the method and security of payment.
Many people are worried about how money is transferred in a foreign country.
The reality is that the process is well controlled and safe if properly managed.
The NIE Number is one of the bases for the administration required for your purchase. Read more about this you can read here.
How does the payment process work?
Payment is made in several steps, not in one lump sum.
1. Booking (reservation)
The first step is usually a small deposit.
This:
- book the property
- indicates a serious intention to buy
This amount is usually a few thousand euros.
2. Pre-contract and larger deposit
The next step is to pay a larger amount.
This is typically:
- part of the purchase price
- often about 10%
This is also when the detailed contract is fixed.
3. Final payment at the notary
The balance of the total purchase price is paid before a notary (notario).
This can happen:
- by bank transfer
- by bank cheque (bank cheque)
This is the official closing of the purchase. To make a payment, usually a Spanish bank account is also required.
How is payment secured?
The safety of the process depends on several factors:
- lawyer verification
- contractual protection
- presence of a notary
Therefore, there is no „hand-to-hand” payment.
What to look out for?
- all payments must be documented
- do not refer directly to an unknown party
- the whole process should be transparent
Common mistake
Many people do not understand exactly what the payment steps are and are therefore uncertain.
This can cause unnecessary stress in an otherwise well-functioning process.
Important to clarify
Payments are not made all at once, but in several stages.
This protects both the buyer and the seller.
What about the conversion?
If the money is not available in euros, you will need to convert it before you buy.
This is usually:
- forint → euro
- or other currency → euro
How is the conversion done?
There are several options:
- via bank
- through online financial service providers
The choice is not all the same, because exchange rates and costs can vary.
What to look out for?
- the exchange rate difference can be significant
- banks often exchange at less favourable rates
- for larger amounts this can make a big difference
Common mistake
Many people make the switch at the last minute.
This:
- could result in a bad exchange rate
- may cause unnecessary extra costs
Important to clarify
All payments are made in euros, so you should plan your conversion in advance.
Choosing the right conversion solution is also an important decision in terms of total cost.
Summary
- payment is made in several steps
- the final payment is made before a notary
- the process works safely
