A BRIEF GUIDE TO PURCHASING PROPERTY IN SPAIN
Before you decide on a property in Spain it is important to be aware of the legal procedures and costs involved in your property purchase. The following information is intended as a guide only and is in no way a substitute for advice from an independently qualified solicitor.
Appointing a Fiscal Representative, Solicitor or Abogado
Whilst it is not necessary to engage the services of a solicitor to purchase a property in Spain, it is recommended. The solicitor will be able to conduct the relevant checks required to make sure there are no outstanding debts, which may exist on the property as well as help with reviewing contracts and obtaining NIE numbers etc... You are free to appoint a solicitor of your choice or we can suggest a few for you in the area to talk to.
NIE Number (Numero de identification de Extranjeros).
It is essential to have an NIE number for any significant financial dealings you may have in Spain. This is a simple but sometimes lengthy process which involves filling in a form either by yourself or with your appointed solicitor. You then need to visit the appropriate department of the police station appointed to deal with the NIEs in your area and present the completed form, together with a colour passport photo, a copy of your passport and your original passport.
Applying for a Bank Account
We strongly recommend you open a Spanish bank account as soon as possible. We can help you to open an account at the bank of your choice.
Applying for a Mortgage
You can choose to apply for a mortgage in Spain or from the UK. Mortgage rates in Spain are very low at the moment and are currently around 2.5 – 3.5%. Mortgages in Spain are generally of the repayment type (capital and interest).
Applying for a mortgage in Spain is a straightforward process, as in the UK. You will need to prove that you have an income or sufficient funds to pay the mortgage. The level of mortgage offered is directly dependent on your financial status and also the declared value of the property you wish to purchase. Generally, if you are self-employed you will be required to show your last three months bank statements and if you are employed you will have to show your last three months wage slips.
There are generally 2 levels of mortgages offered, one for residents and one for non-residents. For non-residents the mortgage offered is generally around 70 – 75% of the declared value of the property, for residents it is usually around 80% of the declared value of the property.
Purchasing a Property
Once you have decided on the property that you wish to purchase and the terms and conditions have been negotiated with the vendor, then usually a deposit of 10% of the purchase price is required to secure the property as an official confirmation of your intent to purchase. The remaining 90% is payable on the signing of the title deeds before the Notary.
If you are purchasing a new construction then the developer will ask for stage payments to be made on the property. These can vary depending on the developer.
New and Resale:
Your appointed solicitor will carry out all the necessary searches on the property mainly to ensure that it is owned by the vendor, it has planning permission and completion certificates, there is no outstanding debts or charges on the property and other legal encumbrances.
The Notary (Notario)
This is a solicitor appointed by the Spanish goverment to witness the signing of all legal public documents. In this case the title deeds (escritura) of the property. They represent both the buyer and the seller. The Notary fees are paid on the time of signing the deeds and will depend on the value of the purchase. The original signed document is retained by the Notary who will apply for the formal change in the Land Registry. The purchaser will receive an initial legal copy of the title deed, which is signed and stamped by the Notary. The official title deed can take a while to be processed and until then this is your official proof of ownership and must be kept in a secure location.
We recommend that you allow a sum of around 12-13% of the price of the property to cover payments of fees and taxes e.g. Land registry fees, notary fees, IVA or Transfer tax and other taxes.
This will differ for new properties.
Community fees (only applies to properties with shared pools, gardens etc)
These are payable yearly and the cost varies depending on the amount agreed by the community and takes into consideration the cost of maintaining the pools, landscaped gardens, lifts, general maintenance etc.. There is an AGM where all residents of the community are to vote on various decisions and one of these decisions is the amount to be charged in the community fees.
We at Newstart Estates pride ourselves on our after sales service many of our once were clients have now become dear friends. We are always on hand to guide you through the whole sales process from beginning to end enabling you to enjoy a stress-free experience of holidaying or living here on the beautiful Costa Blanca. Like many of our clients have said they found a Newstart with Newstart Estates. WE HOPE YOU CAN TOO !
Please feel free to contact us if you require any more information on buying or selling a property in Spain with NewStart Estates, we are always on hand to help & look forward to your call. contact us or Tel +34 965 038 990 | Mob +34 665 383 392 | UK +4420 3813 1881