The buying process
Our dedicated team is here to ensure that buying a property in Spain will be straight forward and stress free. Here at Casas Manuel we will be able to assist you through every step of the buying process. This page will give you some pointers on what to expect when buying a property in Spain.
It is important that you prepare the relevant finances that will enable you to be in a position to purchase your Spanish dream property when you come upon it. This will not only determine your budget but will also allow you to take action on a property when you find it.
When looking at property in Spain, it is important to take into account the purchase fees that are involved, circa 13% of the property price, which covers the following:
- Resale Purchase Tax - Impuesto de Transferencia de Propiedad - 10% as of 05.08.2013
When purchasing a resale property the buyer is required to pay the transfer tax which is now 10%.
- New-Build Purchase Tax (IVA)- 10% as of 01.01.2013 (Spanish equivalent to VAT)
Payable as part of the payment structure or on completion of the property as detailed in the contract (10% of the declared value of the property).
- Notary Fees
Preparing the Escritura, registering the title.
- Land Registry Fees
To register the property at the relevant Land Registry Office.
- Plus Valia
Tax levied by the Town Hall in accordance with Spanish Law, the vendor is usually liable to pay the Plus Valia Tax. However on new properties it is paid by the purchaser.
- Stamp Duty - Actos Jurídicos Documentados
Payable when purchasing a New –build property – around 1%.
Once you have decided on a property and a price has been agreed it is important to reserve the property (usually a 2,500 - 3,000 Euro deposit is required). Once the deposit has been paid the property will be taken off the market and the price fixed.
The next step is to draw up a contract which will state a date of when the property will be signed for. The completion date will obviously differ to suit individual needs. If the completion date is to be longer than 4 weeks then it is usual that a further payment (usually 10% of the purchase price) is put down as security.
During this time we will liaise with the notary/solicitors and prepare the paperwork that is required. On the day of signing, both parties will be present at the notary with their solicitors. It is here where the remaining balance will be paid.
Once the contracts have been signed and the title deeds exchanged, you will then officially be the new owner of the property.
Do not be scared! We are here to help you through :)