Buying a property in Spain
Finding Your dream property in Spain is a process that can last a long time, but with us it can take You much shorter. It all depends on how much You know about the properties available and on the office You are in touch with in Spain.
Of course the easiest way to buy a property is to do it personally. It will be an honor for us to be able to meet You, show You our selected properties and make You feel the local lovely atmosphere.
The process and complexity depends on many factors: whether the property is new and bought directly from the constructor, when under construction, or if the property is second hand etc. However we try to help our clients as much as possible in order to make this election and procedure pleasant, short and effective.
The buying process
First of all You need a NIE number (Numero de Identificación de Extranjero). The form for applying for the NIE can be obtained at the local police station. Once You have NIE You have to open the Spanish bank account. You can make it within a day. What´s more this will serve not only for transfer of the purchase sum or part of it but also a bank account will ease the payments of the fixed charges such as electricity, water, local taxes and community cost. These expenses can then be drawn automatically on your bank account without extra charges.
Of course our company uses all contacts to make the procedure faster.
The next step before signing the reservation contract is to check by the lawyer that there is no debt in the property, that all bills have been paid and that the seller is the righteous owner of the property and not at least that the title deed match with the property that you have agreed to purchase.
After everything is checked and you have agreed on the price you sign a pre-agreement or a reservation contract. A reservation sum of Euro 3.000 - 6.000 is normal and serves for reserving the property for typically 30 days after this you either lose your deposit or proceed to the actual purchase.
The actual purchase takes place in the Notary´s office where either yourself or the person with the power of attorney and the seller or someone appointed by the seller are present with the Notary. Having signed the documents and verified that payments have been made You will then get the keys to your property.
Purchase expenses
As almost all prices are stated as net prices in Spain you must as a rule of thumb calculate an extra 8-10% to the advertized price. The 8-10% will cover the following fees:
| Type of cost re-sale property | Price | Example
Price E 300.000 |
Lawyer's fee
Depending on the price of the property and the complexity of the purchase | 0,5 - 1% | E 3.000 |
| Transfer tax (ITP - impuestos de transmisiones patrimonales) | 7% | E 21.000 |
| Notary fee maximum | 0,5% | E 1.500 |
| Property registrer fee | 0,1 - 1% | E 425 |
| Utility contracs - change of Electricity, water, gas | E 400 - 600 | E 500 |
| TOTAL additional cost | 8 - 10% | E 26.425 |
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Cost of owning a property in Spain
| Type of cost per year | Price |
Insurance
Depending on the price of the property and the content | From E 200 |
Annual property tax | 0,2 - 2,5%
Base - Valor Catastral |
Local annual property tax (IBI) | 0,2 - 1,1%
Base - Valor Catastral |
Community fees
Pool, garden, security, general maintenance | E 400 - 600 |
Utility contracts - fixed cost
Electricity, water, gas, garbage | E 400 - 600 |
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Please note that if your property is rented out an income tax apply as well. For more information please contact us.
Visit Spain
Are you considering coming to Spain to take a look at the property offerings or maybe just to explore the regions where you might want to look for a property then please contact us for an inspection trip.
