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Purchasing and Legal information
Purchasing a property in Spain is a serious commitment and
it is essential that you think carefully about the what it is to be used for. A
property which may be suitable for holidays or rental income may not be suitable
for a permanent residence and vice-versa.
There are many Estate Agents in Spain who advertise on the internet and
photographs on their websites may not portray the location and area of the
properties. We have listened to many people who have seen properties on
Estate Agents websites and booked flights to view and be very disappointed
when they see the property is not what they expected due to its locality.
i.e. too close to other properties, 5 kilometres along an unmade track or if
it is in a town or village, no vehicular access. We do the ground work for
you, investigating all the above to ensure that you only view properties
which meet your criteria.
To purchase a property in Spain you will need an N.I.E. This is an I.D.
document for foreign nationals who wish to own a property in Spain and is a
legal requirement. We can help you to obtain one of these.
We also recommend that you open a Spanish bank account. This will enable you
to make payments to utility companies and allow you to make financial
transfers.
When you have found your ideal property you will be asked to make a
reservation deposit of between 3000 and 6000 Euros. This takes the property off the market
and allows the purchasing procedure of your new home to begin. We strongly
recommend that you instruct a lawyer (abogado) to act on your behalf. The
lawyer will make sure that the title of the property and all the paperwork
are in order. When this has been verified as in order the purchase contract
will be drawn up and a deposit of 10% will be required. A completion date
will be made and on this date the purchasers and vendors will meet at an
office of a Government official (Notary) who will oversee the purchase. The
balance will be paid at this time. The keys are handed over and the property
will now be yours.
Important : You should budget for an additional 10% on top of the purchase
price to cover;
Transfer Tax. If a new property is purchased I.V.A. (Spanish V.A.T.) will be
charged at 7% of the declared price. In addition there will be a charge of
1% Stamp Duty. If a resale property is purchased the transfer tax payable is
7% of the declared price.
Land Registry Fees. The fees for registration of the property at the Land
Registry will generally be in the region of €400- €900.
Notary Fees. This is a fixed scale. These will amount to between €500 for a
property price of €120,000 up to €1000 for a property which cost €600,000
Legal Fees. The fees that a lawyer will charge varies from firm to firm and
will generally be 1 - 1.5% of the purchase price.
Frequently Asked Questions
Q: How much deposit should I pay to secure the
property?
A: The amount you will be
required to pay as a deposit is not written in any law. In most cases the
deposit will be 10% of the agreed purchase price. In all cases you can secure
the property with a smaller amount; normally this will be the equivalent of
£2,000. In the event of any problems with the property all deposits should be
refundable.
Q: How can I finance the purchase of my property?
A: Finance is readily available
through all the major banks for your Home in Spain. Our associates have
dedicated mortgage advisers able to offer the help required to select the most
suitable loan to match your budget.
Q: What will it cost to register my new property?
A: The taxes vary on a new or
resale property. However as a guide, your transfer tax, Notary fees, land
registry fees and solicitors’ fees should not exceed 10% of the purchase price.
This may increase if you take out a mortgage. Our associates will clearly
explain and guide you through this process.
Q: Will I need to open a bank account in Spain?
A: We recommend that you open an
account in a Spanish bank. You will need this account for the payment of your
standing orders for, electricity, telephone, community fees, etc. Our offices
will be able to recommend suitable local banks with English speaking staff.
Q: Do I really need a solicitor?
A: Yes, a solicitor is a
must when buying a property in Spain. They will safeguard your interests and
provide you with accurate information throughout the transaction.
Axarquia Homes. Malaga 29713. Spain.
Telephone From the U.K. (Local Rate) 0844 734 7666
International +34 952 115 471
email
info@axarquiahomes.com
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