Please, read the following information and if you need more help, don't hesitate in contact us. We will be pleased to attend you.
- ADVANCE PAYMENT.
- FINANCING YOUR PURCHASE
- SALE NEGOTIATION
- REPUTABLE LAWYER
- OFFER CONFIRMATION
- PRIVATE CONTRACTS
- COMPLETION OF THE CONTRACT
- REGISTRATION
- COSTS INVOLVED
- FEES
- TAXES
Before you begin to search for a property, make sure you have sufficient funds to cover any reserving deposit. The minimum amount normally is Euros 3.000,- but could be higher for more expensive properties. This reserving deposit can be made in cash, credit card or by cheque from any Bank in Spain . Remember that if cheque is from a foreign Bank, delay to be cashed by the Spanish Bank could be about ten days, which may be you could lose the property.
If you cannot pay immediately the reserving deposit, you take the risk that another buyer may get the property.
Actually in Spain there is not practically exchange control, therefore if you are resident or not, you will be able to obtain a loan or a mortgage on your property in any currency or from any Bank in the world. Spanish Banks have not inconvenient to grant a loan or a mortgage on a property, even if you are not resident in the Country.
Required Documents- Written Reference from a Bank.
- Statement of account for the last three months.
- Photocopy of your Last Income Official Declaration.
- Salary or wages receipt for the last three months.
- A detail Balance of assets and debts.
- In case of being an independent dealer (autonomous), an annual statement of account.
When you have chosen a property, the price, terms and conditions must be dealt with the seller. If you prefer to make an offer according to a mortgage or may be you wish to modify the payment terms or ending date, at this point the Real Estate Consultant may recommend you a lawyer to advice and assist you with the negotiation and to assure you that the offer is according to actual requirements.
You will need a lawyer to give you the necessary legal advice and assistance to purchase a property and to assure you that all legal requirements are fulfilled according to actual Spanish Laws, such as the property is free of charges, like debts and community fees are paid up to date.
Also to advice to the Real Estate consultant in more complicated and difficult negotiations with the vendor.
Once you have a verbal agreement between the parts, the following step is a written confirmation of the sale offer terms. The funds must be deposited on a local Bank account or with your Lawyer to prove that there is a real intention to buy the property . It is common in Spain to include with the offer a certain amount of money to reserve the property up to the moment of exchanging contracts.
Once the seller has accepted your offer, the next step is an exchange of private selling contracts or signature of a selling option. This normally happens in a maximum of two weeks after formally accepting the investigations about the property and will have arranged with the vendor the payment of any kind of debt. The private contract or buying option will indicate all agreed terms of the offer and will specify the completion final date to the Public Notary. At this point, it is usual to pay 10% of the buying price, in case the operation fails, that amount would not be refundable.
7.- COMPLETION OF THE CONTRACT
In Spain a sale is considered completed when the public document is signed at the Public Notary, the last payment is made and the property and keys are passed to the buyer.
Once the Title Deed is signed, the Public Notary sends a copy by fax to the local Land Register. Your Lawyer will pay corresponding transferring taxes and will proceed with the formalities regarding registration of the Title Deed , which can delay few months.
Your Lawyer will pay invoices for local public services such as rubbish collection, water, electricity through your Bank account.
In theory there are three fees and two taxes to be paid in a buying operation in Spain . As general information you must estimate that a combined total of those quantities would be 11% of buying price
- Legal Fees: minimum 1.800 € or 1,5% of the value of the purchase, the one is higher of the two, plus VAT (IVA) which actually is 16%.
- Notary Fees: Fees are established by Law and it ranges from 300 € for cheaper properties and up to 900 € for more expensive ones.
- Registration of the Property: Generally is 60% of the amount paid to the Notary.
Transfer Tax (ITP) on residential properties is 7% or if the purchase is made through a Promoter or Real Estate, the transfer tax VAT (IVA) is 7% plus stamp duties representing 1%. The VAT (IVA) of 16% can be applied to plots of land, commercial or garage spaces. Plusvalia payment is on the vendor but could be negotiated to be paid by the buyer. This tax could be hundred of euros or several thousand of euros in more expensive properties with large plots of land.
Ask your Lawyer to inform you who must pay the expenses.