Buying
in Spain
We aim to make the purchasing
process, as simple, informative and enjoyable as
possible for you. Here is some general information
to help you relax as you take those first steps
towards your Spanish dream………..
THE NORMAL SPANISH PURCHASING PROCESS
The
purchase process can vary from property to property
and be adapted to suit individual circumstances,
but the following can be used as a typical illustration.
** You will need to open a Non-Resident bank account
** You will need an N.I.E. number (Non Residents
Identification Card )
** When you have found the property you want to
buy you will normally have to pay a holding deposit
of 3000 Euros THIS IS NON REFUNDABLE! This will
usually hold the property for 14 to 28 days to allow
for finances to be arranged etc. If you are purchasing
a resale (second-hand) property, then you will be
generally required to make the following payments:
1. 3000 euros deposit when you sign the purchase
contract
2. 10% of purchase price within 14 to 28 days as
agreed (less the 3000 euros)
3. No further payment until you complete the purchase
at the Notary’s office
Completion
time will vary depending on your instructions to
your solicitor or if the vendor is living in Spain
or has issued powers of attorney to someone in Spain
or if there are any complicated legal issues to
settle. Normally the average time to complete is
six to eight weeks but can be much sooner.
PURCHASING
EXPENSES
Generally,
the total expense incurred in buying a property
in Spain is about 10% of the value of the property
you are purchasing, made up as follows:
For
example, a property valued at 250,000 euros
IVA (Spanish equivalent of VAT at 7%)......................17,500
euros
Stamp duty – 1%………………………….
.... ...............2,500 euros
Legal fees ( Spanish Lawyers fees at 1%)…
......... ......2,500 euros
Notaries fees (Approx 0,5%)........................................1,250
euros
Land Registry & Gestoria fees (Approx 0.5%)................1,250
euros
Total.........................................................................25,000
euros
· Most banks will charge 1% to 1.5% administration
fee for providing a mortgage and around .05% for
the valuation. We can assist with mortgages in Spain,
please ask!
APPROXIMATE
RUNNING COSTS - NON- RESIDENT PROPERTY OWNER
**Wealth Tax = 0.2% of property value.
**Local rates are payable between August and October
generally around 400 / 500 euros p.a.
**Community (Urbanisation) fees, (if applicable)
are paid Annually
**Electricity bills come every two months
**Water bills - every three months
**House
Insurance is due once a year depending on the date
of your purchase contract. The cost depends on size
and value of the property and contents
