Buying A House In Spain - Things To Know

Here is some simple information to help you through buying a property in Spain...

Deposit

Once we have helped you find your ideal building plot or property, to secure it, you will be asked to pay a deposit. The amount can vary but normally it is 10% of the purchase price. We endeavour to negotiate for all our clients a € 3,000 deposit, at least until such time that the lawyer confirms all is okay with the property.  The deposit is always refundable if there are legality issues which cannot be resolved at or before the time of purchase. 

Contract

The Compra-Venta (purchase contract) can be drawn up by us or by a legal representative. In order to draw up the contracts it is necessary to agree upon a price, completion date, details of the Buyers and Sellers and also a latest completion date.  Our contracts are in English and Spanish ensuring that there is no ambiguity. Once you sign the contract and pay a deposit, the contract is legally binding for all parties.

Legal Representation

We recommend that all clients appoint a legal representative to act on their behalf, on all matters relating to the purchase of the property. Having an independent legal representative does give you peace of mind that you have someone independent looking after your best interests.  If you do not have a lawyer, we will happily provide you with the contact details of a reputable local, english speaking lawyer that many of our clients have used in the past.

Finance

Should you require a mortgage to purchase or build the property this can be arranged in Spain or in the UK.  We can help you through the entire application as part of our service and can open a bank account and get mortgage quotes for you in advance of your purchase.

N.I.E. Identification Cards / Numbers

Your are required by LAW to obtain an identification number (N.I.E.), enabling you to open bank accounts, buy properties, take out insurance etc. Your Laywer or we can help with this.

Bank Account

It is normally necessary for you to open up a bank account in Spain in order to complete on a house purchase. Again, we help you with this as part of our service.

Transfer of Title Deed

Full payment is required before the Escritura (title deed) can be transferred into your name. This is normally done at the Notary Office. If you are buying a new property which is under construction, you must follow the payment schedule as the building reaches each stage.

Property Registry Fees

The registry fees are based on the registered value of the property, which are usually about 200 to 500 euros.

I.V.A. (V.A.T)

You must pay this tax before the Escritura (title deed) can be registered in your name. In the case of a private property, the tax is 7% of the registered declared value.

Declaration Of The New Build

If you are buying a new build there is a 1% tax (of the declared value) to pay to register the new build.

Notary Fees

The Notary's fees can vary between 300 euros to 900 euros but average at 1% of the declared value of the property.

Plus Valia Tax (Capital Gains Tax)

This is a tax relating to the property, and it is calculated and applied by the local Town Hall in respect of the increase in the value of the land since it was last sold. This tax is normally paid for by the vendor.

Taking Possession

Handing over the property and the keys will normally take place once the full purchase price has been paid. Again, normally at the Notary Office.

Transfer of Services

Having completed the purchase, it is necessary to connect or transfer services. Both electricity and water meters need to be in your name, and to avoid payment problems, we recommend you set up a direct debit or standing order with your Spanish Bank.

Insurance

This becomes your responsibility upon possession of the property and can be arranged either in Spain or in the UK.  We can recommend insurance compnaies that provide policies in English and Spanish.

Residencia

You are not required to be a resident of Spain to purchase a property. It can have certain advantages to take out the 'Residencia'. Mainly, one has the same legal rights as any Spanish citizen and also it enables one to have a residents bank account, which means you will be charged lower interest rates (amongst other benefits). In addition it can reduce the amount of Capital Gains Tax you pay when you come to sell your property in Spain.

Wills

The inheritance laws in Spain are different to the UK. To avoid being caught out we advise that you speak to your lawyer about drafting a Spanish Will.

Call Now For More Information or Help:  0034 627 241 129