Buying a Home in Spain
Doing the right things right the first time...
Buying your Spanish Home is a very pleasant activity and of course an important step in your life. We help you through all the steps to allow you to purchase with complete peace of mind. When buying a property in Spain you should always use the services of a specialist Spanish Property Solicitor right from the outset to protect your interests.
Before purchasing it is important to know the complexities of the procedure and the importance of such matters. There are many pitfalls to buying a property in Spain, and it can be all too easy to fall into one if you’re rushing into buying that dream project in Spain. Yet with a little time and patience, buying a property in Spain should be as safe as purchasing a property in the UK, provided you have the essential services of an independent lawyer. The Spanish legal system operates very differently to the UK system, and the only way to avoid frustration, misunderstanding or even fraud is to secure the crucial services of an expert.
Requirements to be an owner of a property in Spain:
Having a Fiscal Identification Number (NIE), which must be requested to the police authorities, and opening a Bank Account with a Spanish Bank for paying all suppliers of the property (water, electricity, telephone, community rates,etc).
Taxes to be paid for the transaction:
VAT 7% and Stamp Duty 1% on the purchase for new properties, Transfer Tax 7% on the purchase price for second hand properties, and VAT 16% and Stamp Duty 1% on the purchase price for Plots of Land from companies, and Commercial Properties. It can also be agreed that the purchaser pays the Plus Valia Tax - a Local Tax.
Taxes to be paid in the future for having property:
Real estate tax (IBI), Deed Income Tax and Wealth Tax.
The main outlays and costs to be paid in the transaction:
Notary fees, Land Registry fees and solicitor fees.
Step One - Prior to Departure
Decide on which area you would prefer to buy your property. Deal with a reputable, knowledgeable and friendly agency.
Don’t be tempted to "go it alone", use professionals. You will need expert advice and the services of an independent solicitor. This is a major investment, don’t put your money at risk!
Step Two - Pay Us A Visit
Contact RuralSunProperties if you require help with flights, hotels, car hire, etc. Give us notice of your visit so we can prepare and discuss with you your options prior to your visit. This means better use of your time during your visit in Spain.
Make a list of any questions and issues that you have, and ensure that when we start to view properties you give us some feedback -even if it’s negative-. If you don’t like something say so! Remember that the more we understand your requirements the sooner and easier it will be for us to find the perfect property for you.
When looking at prices please remember to add approximately 10% to cover your expenses. This comprises either VAT on a new property (7%) or Property Transfer Tax on a re-sale property (also 7%); solicitors fees (approx. 1 - 1.5 %) and other minor items as stamp duty, notary fees, etc.
Step Three - Buying!
You have found the property you want! Now let’s make sure the necessary legal issues are covered and commission a local, independent solicitor to look after your interests.
You may need a mortgage. Let us introduce you to an independent broker that can offer you impartial advise on mortgage availability, rates , etc.
Be prepared to provide a reservation (initial deposit) in order to secure your purchase - usually 3.000 - 6,000 euros. Your reservation does two important things: firstly, it fixes the price avoiding "gazumping" and secondly, it takes your selected property off the market.
Your solicitor will guide you through the necessary steps to contractual completion, arranging the appropriate paperwork and financial issues.
