All we need from you are your basic property requirements and we can begin immediately.
- Budget Ceiling
- Property Type ( villa, townhouse or apartment )
- Number of Bedrooms
- Preferred location
THE PURCHASE PROCESS
Once we have helped you find your perfect property you will need to make an initial offer and we will advise you accordingly. Once accepted you would complete a reservation document and pay a nominal sum, somewhere between € 3000 & € 6000, usually to your lawyer. Once this is done the property will be taken off market and reserved. This deposit is normally held by your lawyer in their client account, until the private contract is signed. Should the offer not be accepted and negotiations end, the deposit can be returned to you.
In order to comply with strict anti money laundering laws you will be required to provide to your lawyer and estate agent the following information:
- Passport copy for all purchasers
- Full main residencial address
- Utility bill dated within last 3 months
- Description of source of wealth for the purchase
Once you offer is accepted, your nominated lawyer will check the land registry to make sure the property is properly registered and that there are no liens or encumbrances. The lawyer will arrange the payment structure with the vendors representative prior to going to notary and prepare a private contract that will bind both parties. Normally a private purchase contract is arranged and 10% of the purchase price is paid and set against the agreed sales price. The private purchase contract will set the date for the sale completion and the lawyers will prepare the public deeds for signature at a Spanish notary.
A purchaser will also be required to apply for an NIE (Numero de Identificacion de Extranjeros) which is simply an official identification number for non Spanish nationals. The application must be made prior to signing and taking position of a property. Your lawyer can arrange this for you.
It is also important to open a Spanish bank account prior to purchase in order that your lawyer can set up standing orders for future payments of the property utilities and taxes.
On the date of completion at the Spanish notary the Escritura (title deed) should only be signed once your lawyer has carried out all relevant checks to confirm ownership of the property, that’s its free of debts,etc. Your lawyer will have agreed a payment method and structure with the vendor before completing at the notary. Bank-guaranteed cheques issued by a branch on the Costa del Sol are the preferred method, though it should also be possible to transfer funds to the notary's account. You will require certain necessary documents with you when you go to the signing including an N.I.E number, your lawyer will inform you of everything you will need to take to the Notary.If you are unable to attend the signing at notary personally then a power of attorney can be granted to your lawyer to represent you. The easiest way to grant power of attorney is to sign one before a notary in Spain, though at greater expense one can also be arranged through the Spanish consulates in the UK or through a British notary. All involved parties, the vendors, buyers and mortgage lenders, have to be present represented by powers of attorney at the signing of the escritura.
THE PURCHASE COST & TAXES
When purchasing a resale property there is an 8% transfer tax payable by the buyer, known in Spanish as Impuesto de Transferencia de Propiedad (ITP)
For off-plan new build purchases there is a fixed rate of 10% IVA ( VAT).
Notary fees can vary depending on the number of pages or complexity of the title deed but are normally in the region of 0.5% of the purchase price. There is also a land registry fee of around 0.3%.
Lawyer's fees are in the region of 1% of the selling price.
Should you require a mortgage we can recommend an independent mortgage adviser that specialises in providing impartial advice to non-residents and ex pats and who will discuss your mortgage requirements. As a non-resident the maximum mortgage you can expect to achieve through a Spanish bank is between 70 to 80 %