Buying A House In Spain - Things To Know
We STRONGLY RECOMMEND that you pay your reserve direct to your lawyer for them to check in the first instance that everything is correct for you to proceed with a sales contract
Here is some simple information to help you through buying a property in Spain and we will help you every step of the way.
N.I.E. Identification Number
You are required by law to obtain an identification number (N.I.E.), enabling you to open bank accounts, buy properties, take out insurance etc. We can help you with this.
It is necessary for you to open up a bank account in Spain in order to complete on a house purchase. Again, we can help you with this as part of our service.
We can offer the services of several lawyers in the area who can act on your behalf, on all matters relating to the purchase of the property.We can arrange a Free 15 minute private meeting so the lawyer can answer your questions and explain the legal process of buying a property.
Should you require a mortgage to purchase or build the property, we can help you through the entire application as part of our service and can open a bank account and get mortgage quotes for you in advance of your purchase.
ALL THIS PROCESS WILL BE ARRANGED AND CARRIED OUT BY YOUR LAWYER AND EVERYTHING WILL BE EXPLAINED AT YOUR MEETING WITH THEM
Here is some information:-
In terms of buying costs, the average is between 11 and 13% of the purchase price. The bulk of this is made up by an 8 to 10% transfer tax (depending on the region that you are buying in). The remaining 3% goes towards Notary, Land Registry and Legal Fees.
1. Transfer Tax either 8 or 10%
You must pay this tax before the Escritura (title deed) can be registered in your name.
2. Property Registry Fees
The registry fees are based on the registered value of the property
3. Declaration Of The New Build
If you are buying a new build there is a 1.5% tax (of the declared value) to pay to register the new build.
4. Notary Fees
The Notary's fees can vary between 350 euros to 950 euros but average at 1% of the declared value of the property.
Deposit for New Builds
Once we have helped you find your ideal building plot or property, to secure it, you will be asked to pay a deposit to reserve the property for you whilst the paperwork is being checked. The deposit is always refundable if there are legality issues which cannot be resolved at or before the time of purchase and is paid direct to your lawyer.
Contract NEW BUILDS
The Compra-Venta (purchase contract) will be drawn with your and our legal representative Lawyer, and will show details of the property, the agreed price and a proposed completion date. Once you sign the contract and pay a deposit, the contract is legally binding for all parties.
Transfer of Title Deed NEW BUILDS
Full payment is required before the Escritura (title deed) can be transferred into your name. This is done at the Notary Office. If you are buying a new property which is under construction, you must follow the payment schedule as the building reaches each stage everything will be discussed with yur lawyer and a formal contract will be drawn up between the constructor and the buyer.
Taking Possession NEW BUILDS
Handing over the property and the keys will normally take place once the full purchase price has been paid. This is normally done at the Notary Office.
Transfer of Services NEW BUILDS
Having completed the purchase, it is necessary to connect or transfer services. Both electricity and water meters need to be in your name,this is done by direct debit from your bank account and arranged by your lawyer.
This becomes your responsibility upon possession of the property . We can recommend insurance companies that provide policies in your language.
Transferring Funds from UK to Spain.
We recommend using the services of a currency exchange specialist as they offer a better exchange rate than the bank and have cheaper charges. We can recommend various companies to you that we have successfully used in the past
The inheritance laws in Spain are different to the UK. To avoid having problems we advise that you speak to your lawyer about drafting a Spanish Will.