BUYING A PROPERTY IN SPAIN

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THE RIGHT PROPERTY FOR YOU

We will arrange viewings of properties you wish to see. When you have found the property you want to buy, we will assist you through the whole process. Remember that as a buyer you do not pay any fees to us for this service. 

MAKE AN OFFER 

As your agent, we will forward your offer to the sellers agent, or directly to the seller if it is our listing, the other part will accept or make a counteroffer. It is common to negotiate the price in Spain, and we will help you to get the best price. 

RESERVATION CONTRACT (Contrato de Reserva) 

When a price is agreed, a reservation contract is signed. Contrato de Reserva is a simple sales agreement document that determines the price and payment terms. 6,000 Euros are paid as a deposit to be kept in the lawyer’s client account. The seller then removes the property from the market during a reservation period of (approx. 8-14 days) and documentation is obtained from the property register to ensure that all information is correct. 

NIE 

A Fiscal Identification Number for all non-residents (NIE), is necessary when dealing with bank accounts, effecting monetary transactions and forwarding declarations for Wealth Tax and Income Tax. The process of getting a NIE-number will be handled by your lawyer as soon as you have found your property to buy.
 

LEGAL INVESTIGATION OF THE CONDITIONS 

The lawyer checks that everything about the property is correct, that all permits and licenses from the municipality are in order and that there is no debt, mortgages, costs, tenants, and loads registered on the home. 

PURCHASE CONTRACT (Contrato de Compraventa) 

Once the lawyer has confirmed that everything is correct and legal, the buyer and seller can sign a purchase contract. The contract is very detailed and contains a comprehensive legal description of the property itself. It also contains all buyers 'and sellers' information, purchase price, due date for payments, estimated date of signing the document and other legal clauses. In connection with this, the buyer usually pays 10% of the price of the property.
 

TITLE DEED (Escritura de Compraventa) 

In Spain, the final step in a property purchase takes place with a Notary. The title deed is a formal document and both parties, both buyers and sellers, either together with their lawyers or only the lawyers with power of attorney, meet with a notary to sign the law of the property. In connection with this, the buyer pays the remaining sum of the price of the property to the seller and the seller hands over the keys to the property to the buyer. From this moment on, the buyer is the rightful owner. The title deed must be signed by three parties: the seller, the buyer, and the notary.
 

REGISTRATION OF THE PURCHASE 

A few days after the deed has been signed, it can be collected from the notary, after which it is passed on to the property register, which ensures that the home is officially registered in the new owner's name. All overheads, fees, transfer tax and other legal costs are now paid. Your lawyer ensures that all contracts such as water, electricity, owners' association, etc. and various taxes relating to the home are transferred in the new owner's name and that these costs are automatically deducted from your bank account via direct debit.
 

FEES AND TAXES 

Resales properties Transfer tax 7% 

Notary Fees (approx) 0,50% 

Land Registry Fees (approx) 0,30% 

Legal Fees (approx) 1% 

Mortgage tax** (approx) 1% 

TOTAL 9,80% 

** Mortgage taxes: If you buy either a resale or new property in Spain with a mortgage, you are required to pay Stamp Duty, at a rate of 1.5%, on the maximum liability covered by mortgage (principal loan, interests, and legal costs in case of default).

When the seller is a company or professional who sells property as a business, the buyer must pay VAT at a flat rate of 21%. Exception: If the buyer is acting as a Spanish developer, transfer tax is levied at a flat rate of 2% provided the property is sold within the following five years.

NEW properties (normally from a developer) 

Buyers have to pay VAT at a flat rate of 10% on new-build properties. Whenever VAT is due, buyers also have to pay Stamp Duty (Impuesto sobre Actos Jurídicos Documentados) at 1.5%. 

VAT 10% 

Stamp Duty (AJD) 1,5% 

Notary Fees (approx) 0,5% 

Land Registry Fees (approx) 0,3% 

Legal Fees (approx) 1% 

Mortgage Fees (approx) 1% 

TOTAL 14,3%