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Buying a Property

Below are the steps you will go through to Buy a property in Spain.

Please do not worry about this. It looks and sound complicated but is really quite straight forward. Both us and your Lawyer will be with you all the way through to assist in every way. Including arranging Bank accounts. NIE numbers. You will find it a surprisingly easy and quick process.

Choosing a Property

Serious thought may be required to first identify clearly in your own mind the type of property you need and the area where you would like to buy. Once armed with this information we can start to find that Dream Home

Using an Agent

An agent can be very helpful to a buyer. We will provide a wide selection of properties, and local information. We will also help you to seek out the perfect property even though we do not have it listed already. We can use our network of affilate agents to find it, taking all the Legwork out of it.

We do not make a charge to the purchaser for normal agency services, this is covered by the Vendors fee

Make an Offer

When you have decided on the property the first step is to make a verbal offer either directly to the owner of through your agent. Negotiations will then proceed until a price is agreed when you should appoint a lawyer to formalize the agreement.

Appoint a Lawyer

The lawyer, who should be fluent in your language, will carry out the necessary checks on the property and complete the legal requirements of the sale. The first check is normally to obtain from the Property Registry a “Nota Simple” which will identify the registered owner and provide details of mortgages or embargos on the property.

You should obtain from the seller receipts for payment of IBI (Impuestos sobre Bienes Inmuebles), the annual real estate tax. These will show the “Valor Catastral” the assessed value of the property on which your property income tax will be based.

If you are buying a new property ask to see the “Declaracion de Obra Nueva” and the “Declaracion de Alteracion de Bienes Naturaleza Urbana”.

Where there is a community involved ask for receipts for community charges and obtain minutes of meetings from the president to identify any problems. A chat with the neighbours would also be a good idea.

Holding Deposit

After the price is agreed and the “Nota Simple” has been checked you may wish to pay a small holding deposit to take the property off the market and reserve it until you can make completion. Your lawyer will prepare a formal offer and agreement for this purpose

Exchange Private Contracts

The exchange of private contracts or the signing of an option to buy would normally take place about two weeks after the formal acceptance of an offer, when the lawyer would have completed his searches. The contract would set out all the agreed terms and state a date for completion. It is usual for the buyer to pay a 10% deposit at this stage which is non-refundable.

Complete at the Notary

On the assigned day buyer and seller (or their authorised representatives) will attend the office of the notary to sign the “Escritura de Compraventa” (the title deed) which should state that the property is sold free of charges, mortgages and tenants. The notary does not check the terms but solely certifies that the parties have agreed them. At this point the balance of payment is made and possession passes to the buyer.

Your lawyer will arrange payment of taxes and fees and register your title deed at the Property Registry. This should be done promptly. Don’t forget to have the property insured

The Costs

There are three fees to be paid Lawyers fees, Notary fees, and Property Registry fees. Also there are two taxes, Transfer Tax (ITP) and “Plus Valia”.

Lawyers Fees usually about 1% of the purchase price plus 21% IVA

Notary Fees fixed by law and normally in the range of 300 Euros – 900 Euros.

Registry Fees approximately 40% of the Notary fee.

Transfer Tax 7% of the purchase price; but when buying from a developer this is replaced by 7% IVA plus 0.5% stamp duty.

Plus Valia this is a local municipal tax and is based on the officially assessed increase in the value of the land since the last time the property changed hands. It can vary considerably from a few hundred to several thousand euros.

Who Pay’s What it is normal practice for the buyer to pay the above fees with the exception of the “Plus Valia”, but everything is negotiable and should be stipulated in the contracts. The vendor will pay his own Capital Gains Tax and the estate agents fees.

We always advise you seek the advice of a qualified lawyer that speaks your language.
See our list of recommended lawyers.

Information correct at the time of publishing.