What costs do I have to Pay?
The agents and Abogado (Spanish solicitor)/legal representatives fees. Plus Valia – this is a capital gains tax, worked out by your local council – your solicitor/legal representative will confirm this amount. If you are not a fiscal resident then 3% non residents tax. IBI up todate. If you have a communal pool then this has to be paid up todate.
What documents are required to sell my property?
Escritura -deeds, Fin de Obra, utility bills, copy of your passport/residencia and NIE, Energy Performance Certificate and inventory of items included in the sale, solicitors details, or legal representative. You do not legally require an Abogado (solicitor), but would recommend, to ensure that all relevant taxes are paid. All structural modifications will require a license, that also includes a swimming pool. If these documents are not in place, then the purchasers solicitors/legal representative will insist on a retention being held back to pay for the documents.
What deposit is taken when I agree to sell my property?
A deposit to secure your purchase is 10% of the purchase price, a €3000 deposit is just a holding fee and is not secure until the 10% is received. This deposit is held in a Client Account until completion. This deposit is non refundable to the buyer if they decide not to proceed with the transaction (unless a mortgage is involved). Should the seller withdraw from the sale then they are obliged to refund the 10% deposit plus a further 10% to the buyer. FOR THE PURCHASER – we can assist in as much or little of the process in obtaining paperwork.
What documentation do I need to buy a property in Spain?
Upon finding your suitable property, you will need to obtain an NIE number (Numero de Identificacion de Extranjero) – some Abogado’s (Spanish solicitors) can obtain this for you, they will have to obtain Power of Attorney to do this. You will require a Spanish bank account also. We can also help with opening a Currency Exchange account, it is far cheaper than sending foreign currency direct from your bank.
What deposit is taken when I agree to buy a property?
A deposit to secure your purchase is 10% of the purchase price, a €3000 deposit is just a holding fee and is not secure until the 10% is received. This deposit is held in a Client Account until completion. This deposit is non refundable to the buyer if they decide not to proceed with the transaction (unless a mortgage is involved). Should the seller withdraw from the sale then they are obliged to refund the 10% deposit plus a further 10% to the buyer.
Is a survey a legal requirement when buying in Spain?
If you are a cash buyer, then the choice is yours. If it is an old property then obviously we would recommend that you have one. If you are purchasing via a mortgage then yes the bank automatically insist on one.
What are the purchasing costs?
You will have to obtain an NIE number for all who will be named on the Escritura/Deeds. Notary fees, solicitor fees, land register, water and electricity contracts, and IVA of 8% if resale and 10% if new build, of the purchase price. We always say allow 12% of the purchase price to cover your costs, that is a maximum. Some solicitors will give you a package including all relevant costs, it’s worth asking. If giving Power of Attorney, then this fee is always separate.
How long is the purchase to completion process?
The timescale really depends on whether it is a straight forward cash sale or mortgage. If it is a straight forward cash sale, then the completion date is agreed at the time of negotiations. This can be anywhere between 2 weeks to 6 months, sometimes longer depending on buyers/sellers circumstances.