What is important to know when purchasing property in Spain

What is important to know when purchasing property in Spain.

First of all it is important to be aware of the fact that all prices mentioned for property is on the basis of "buyer costs". The "buyer costs" in Spain are comparable to those in your home country: approximately 10%. For an already existing home this will be 7% in transfer tax, approximately 3% covering notary, lawyer, registration and mortgage fees. When purchasing a newly built home, you pay 7% VAT instead of the transfer tax. After that, the costs equal that of those for a pre-existing home.

Buying risk-free in Spain

In Spain, just like in most European countries, there are laws in existence to protect property owners. The largest difference is that of the notary's role during the signing of the title deed. A notary in Spain does not have the same responsibilities as notaries do in Northern Europe. The notary composes the official deed and ensures that the correct procedures are followed during the signing of the deed. Afterwards he will send in the documents for registration at the land registry.

In Spain, it is also common practice that a lawyer conducts all the investigation at the registry. He will research when the property has been legally constructed, who owns it, if the property is indebted, if the surface area of the plot has been correctly determined, etc.

How we guide you....

First of all, we take ample time to acquaint you with the very varied surroundings. Our agency will explore, in joint venture with you, what your particular housing wants and needs are. After this preliminary research, we will take you on a visit of a number of different properties or building plots. If you want a newly built home, we will provide you with a constructor. By means of designs, plans and scale models, you can be given an indication of the many possibilities..

As soon as the property-of-choice has been found and an agreement about the price has been reached, we request the owner of the house to grant us a copy of the title deed (escritura). Our (or your own) lawyer will investigate who the legal own is and whether there is a debt or mortgage on the property, etc.

When the title deed has been prepared, a temporary sales contract (contrato privado de compraventa) will be signed with a down-payment. This down-payment ensures that you have the sole rights to buy the property at the predetermined price. This amount will be deposited into a protected bank account by us. This bank account is protected so that you can be certain that the money is only used for the purpose it was assigned. If the selling party fails to meet the requirements of the sale and chooses to withdraw, this amount will be fully restituted on your account.

After signing the temporary sales contract, we send all the necessary documentation to the notary. The notary, in turn, will compose the sales contract and will select a date for the signing.

We will provide you with relevant information to benefit from all the fiscal and legal possibilities in Spain with regards to buying a house.

When applicable, we can request offers and proposals for a mortgage. If you do not have a Spanish N.I.E. number (social security number), we will aid you in filing for one. This number is essential for signing the title deed, opening a bank account etc.

On the day of signing, we will accompany you to the notary and provide translation if you do not command enough Spanish. At the transfer, the total price and the costs of extra items such as the transfer tax and notary costs will be taken care of. If you have filed for a mortgage, the mortgage contract is signed simultaneously with the deed.

After the signing of the title deed (escritura), the new sales contract is sent to the Land Registry and the name of the new owner is registered. You are given a copy (copia simple) of the deed. Until the original is returned from the Registry, this copia simple is the official document stating that you are the new owner of the property you purchased.

After the purchase, we will take care of getting your new home connected to the electricity grid, running water, phone, etc.

What does this assistance cost?

This professional assistance will cost you nothing extra at all. As your real-estate agency we are granted our commission from the selling party of the home. .

How we can help you after the purchase of a home.

If desired, we can guide you and counsel you with: interior decoration, moving, construction, maintenance, letting, cleaning, importing the car, etc.