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Information on buying Spanish property - the jigsaw unravelled
Things to consider when buying your dream home in the sun brought to you by youe Spanish Guide Professionals and professional services you may need
Real estate agents in Spain - A Spanish real estate agent is going to be your first and main point of contact when searching for a Spanish property so you need to take care when choosing one to work with. Don't just use the first one you come across, review their website and get a feel for how long they have been operating and how well known they are. Try two or three Spanish estates agents to start until you get a feel for the one that is going to offer you the best service. Don't forget here at Get Spain we can also help you find your dream property in Spain as we have a relationship with many of the top estate agents in Spain. See our Spanish property page for more information on the areas that we can assist you with. Solicitor / Layers (Abogados) in Spain - There are many solicitors to choose from so you should try and apply a few basic yet important rules before you choose one to work on your property purchase in Spain. 1 - Use a solicitor who is fluent in your own language as well as in Spanish as you will have to talk to them quite regularly. 2 - Use a firm of solicitors in Spain that has more than one practicing lawyer so that you are always able to contact someone for an update on your Spanish property purchase. 3 - Try not to use the lawyer associated with the estate agent as it is difficult to believe that they are totally impartial. Some agents may even advise you that you do not need a lawyer for your property purchase. Our advice is DO use a lawyer. You are buying a property in a foreign country where there is still lot's of red tape and the rules and regulations differ greatly from your own country. Click the following link to view more detailed information about Lawyers in Spain Accountants (Gestorias) in Spain - A gestoria can handle a number of different duties related to the purchase of property in Spain as well as residency issues and things like car imports and the registration of number plates to Spanish. They will also handle things like helping you get a NIE number (the equivalent of a UK National Insurance number, which you must have to purchase a property in Spain). Additional services handled by a gestoria in Spain are tax issues. If you rent out your property you will need to keep records of expenditure and income as you will have to pay tax on the profit (if any). Surveyors in Spain - Here in Spain you will find that a surveyor is not automatically invloved in the property purchase. If you are considering buying an older style property in Spain such as a cortijo, finca or an older villa it is recommended that you use the services of a local surveyor to ensure there are no structual deffects that could end up costing extra money in the future. Architects in Spain - Depending on where you are buying and what you going to build, an architect is a must. They should visit the plot of land in Spain that you are going to build on and advise of things like land slippage, depth to rock, the type and style of the house permitted in the area you have purchased (or going to purchase) land and many more important factors. Mortgage Broker - If you are funding all or part of your property purchase in Spain with a mortgage then you may need a mortgage broker. There are many different options available so you should consider all options carefully and make sure that you have the best advice possible. If necessary get a second opinion to ensure that the advice you have been given is correct. Depending on your personal situation it might be better for you to release equity on your existing home or maybe a Spanish mortgage would be more suitable. You will find that many UK banks now offer mortgages especially designed for buying property abroad. The best advice we can give is to shop around for the best deal and solution for you. One good independent mortgage broker that we came across operating in Spain can be found by clicking the following link - Spanish Mortgages The Process and Associated Costs (Guide only and costs / processes may have changed slightly since we wrote this article. Please check with the relevant professionals before you buy). Location is an important factor to bear in mind when buying a property abroad. The majority of Spain offers more than 300 days of sunshine per a year, acres of lush green vegetation, miles and miles of sandy beaches and the clear blue waters of either the Mediterranean or the Atlantic Ocean (Costa de la Luz). It can be reached by plane with two and a half hours flying time from most European destinations. With many exchange controls removed, a strong economy and an excellent exchange rate Spain provides one of the most attractive investment propositions for the purchase of a second home. Once the property has been chosen, we will go with you to an English speaking lawyer. From this point you will be able to speak to your lawyer directly if you have an issue with any legal implications. A lawyer will provide the legal guarantees for the purchase of your property ensuring that legal requirements are met and that your property is bought free of debt, charges, loans and up to date in all its payments of local contributions and community charges etc. The lawyer may also assist in difficult and complex negotiations with the owner. FORMALISING THE PURCHASE: Once you and us, together with the lawyer has discussed the terms of the purchase with the owner and there is a verbal agreement the next step will be to formalise those offer terms of purchase by setting them out in writing. To safeguard your chosen property it is normal practice in Spain to pay a sum of money to reserve the property for you until such a time as you are in a position to sign the private contract. PRIVATE CONTRACT: The next step in the sales process is to sign a private contract of sale. This may take place within two weeks following the reservation or sooner. Your lawyer will have completed his searches and investigation of the property and will have arranged with the owner the procedure for the cancellation of any outstanding debts. The private contract of sale will reflect all the agreed terms of offer of the sale and set out the date for final completion at the notary. It is normal practice to pay at least 10% of the purchase price at this stage which is normally non-refundable if you the purchaser choose not to complete the sale. SIGNING AT THE NOTARY: A sale is formally completed in Spain when the public title deeds of purchase are signed before a notary. Payment of the outstanding amount is paid and possession given to the buyer. Once signed, the notary will fax a note of the title deed to the local land registry. Your lawyer will also arrange for all the relevant transfer taxes associated
with the purchase to be paid and will handle the formalities of registration
of your title deeds. Similarly, your lawyer will arrange for the transfer
of contracts with the local suppliers of utility services such as water
and electricity and organise their payment through your bank. LEGAL FEES - Normally charged at 1% to 1.5% of the purchase value plus VAT (in Spain referred to as IVA) currently charged at 16%. NOTARY FEES - The scale is fixed by law, we allow 500 Euros as an approximate figure PROPERTY REGISTRY - As a rule of thumb , 40% of what the notary charges. Get Spain Fees - ZERO, we are paid by the real estate agent from THIER
commission, our service costs you NOTHING TRANSFER TAX - At 7%(ITP) plus stamp duty at 1%. IVA at 7% when buying from a promoter, developer or habitual trader. PLUSVALIA - Normally payable by the vendor but it may be stipulated that the buyer pays. This tax may range from a few hundred to as much as several thousand Euros on larger properties with a lot of land. Who pays this will be discussed in the negotiations and in consultation with your lawyer. As a rule of thumb, if you budget for 10-12% of the purchase price for all the costs associated with purchasing, you will not be far wrong. For information purposes we advise you to take a look at the Capital Gains Tax in Spain, should you sell your property at a later stage. For more information about buying a property in Spain or if you have any specific questions, please complete the form below and we will be happy yo help. |
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