Buying a property in Spain;
We will show you the finest selection of properties advising as to the best area to invest in, comparing prices and qualities. When you have made a decision about which property you want to buy you will be asked to make immediate payment of the RESERVATION DEPOSIT, thereby ensuring that the property is not sold to another purchaser.
You will have then a period between 10 and 15 days to exchange contracts, but before doing so; you should seek PROPER LEGAL ADVICE and find yourself a lawyer to advice an assist you.
You should ask him for details of the outgoings payable every year to maintain the property, namely the Annual Real Estate Tax, the Community Fees, the charges for rubbish collection, the water rates, the electricity charges and the Property Income and Wealth Tax in respect of the property that you want to buy.
Prevention is always better than cure. From now on until and after completion of the purchase, the lawyer will take care and assist you in all the different steps involved in the transaction. There are many excellent English-speaking Spanish lawyers in Spain. Choosing the right lawyer is your guarantee that Spanish Legal requirements are met, that the property is registered in the vendors name (seller) and that it is free of any mortgage, charges, encumbrances, debts or other liabilities. Your lawyer will negotiate and discuss the purchase terms with the seller’s lawyer. The terms should not be limited solely to price but should cover in detail all your requirements like completion date, the form of payment etc.
Once you have appointed your chosen law-firm, they will explain the procedure involved in buying in Spain and the associated costs. The next step after paying the reservation deposit is to evidence the terms of purchase in writing. At this stage the lawyers will draw up the private contract. It is customary to pay a deposit of 10% of the price on exchange of contracts, which is normally refundable if the purchase defaults.
Conversely, if the vendor fails to perform his obligations, you will be entitled to the resolution of the contract and claim damages or either demand the obligatory fulfilment of the contract. Before your lawyer exchanges contracts he will have completed his searches and investigations in the Land Registry in respect of the property.
Finally on the day fixed for completion your lawyer will go to the NOTARY PUBLIC to sign the TITLE DEEDS, making the final payment to the seller who will simultaneously pass over possession of the property to you, handing you the keys. At this stage the sale is completed.
Immediately after completion, the notary will fax details of the title deeds to the local Land Registry to inform them of the identity of the new owner so as to prevent the property being sold twice. In this way the Notary and Land Register act together to protect and guarantee your interests. You will then have to pay the relevant taxes and have the original title deed submitted to the land registry for registration of your title. Your lawyer can also arrange for the transfer to your name of utilities and services such as water and electricity and organize their payment through a local bank.
The purchase of the property will involve the following expenses:
NOTARY, who charges according to a fixed scale. His or her charges may range from 340 Euro for a property price of 120.000 Euro to 601 Euro for a property price of 600.000 Euro.
LAND REGISTRY, as a rule of thumb, 40% of what the Notary charges.
If you are buying a re-sale property you are obliged to pay Transfer Tax (ITP) at 8%.
If you are buying a new property or a property in the course of construction from a promoter, developer or habitual trader, then you should pay VAT (IVA) at 8% plus Stamp Duty at 1%.
The VAT (IVA) rate increases to 18% if you are purchasing plots of land, commercial premises or a garage space.
PLUSVALIA, is a tax levied by the Town Hall based on the particular area where the property is located, on the surface area of the land, on the “Catastral” value and on the date of the previous title deed. This tax may range from a few Euros to as much as thousands of Euros on larger properties with lots of land. By law the seller is obliged to pay this tax but it is common practice for the parties to negotiate on who is to assume this liability.
Finally bear in mind that your lawyer will charge fees for his professional services, this will normally range from 1% to 2% of the price plus VAT (currently at 18%)
If you are looking for a lawyer, we can recommend you :
Tel : (+34) 952 528 113
Fax: (+34) 952 525 490
Våra advokater talar både engelska och svenska: