Once you have found your ideal property you need to find a English speaking lawyer. We can help in recommening a lawyer to use but neither use a lawyer recommened by the seller or builder.
You will then need to sign a purchase contract called Contracto de Compraventa. This will be pre approved by your lawyer and must be agreed by both buyer and seller. Within this contract the date is set for completion.
The buyer pays a deposit when signing the compraventa. This can be from as little as 3,000 euros upto 10% of the purchase price and is negotiated between the buyer and seller.
This contract is binding for both parties and there are penalty clauses should either party not proceed to completion.
You must then
Apply in person for your NIE number at the national police station. The Notary will request to see this on day of completion.
Open a Spanish bank account. You must transfer your money to purchase the property either to your lawyer´s client account or to your own bank. The bank then produces a bank certified cheque in the names of the owners for completion.
Buying Costs.
Estimate approx 10% of the purchase price as your buying costs if purchasing with cashand approx 14% of the purchase price of buying with a mortgage.
These buying costs will include:-
Notary expenses
The amount you have to pay will depend on the purchase price declared on the title deed.
• Value Added Tax (I.V.A.) for new properties only
If you have bought a new home you must pay to the builder 7% I.V.A. of the price declared on the title deed.
If you have bought a business or a parcel of land without a home you must pay 16% I.V.A. It will show in the title deed that you have paid this amount to the builder.
• Stamp Duty
Resales and plots of land – if you have bought a resale property or a plot of land you will have to pay 7% tax based on the price that appears on the title deed.
New buildings – if you have bought a newly constructed property and you have already paid the I.V.A. you must also pay 1% tax based on the price that appears on the title deed.
• Land Registry Fees
The amount you have to pay will depend on the purchase price declared on the title deed.
• Land Value Tax (Plusvalía)
This is a town hall tax which is paid once the property has been sold. It is calculated on the increase of the value of the property since it was last sold. This tax will be paid by the vendor unless you agree to pay it.
• Lawyer fees.
In general this fee is 1% of the purchase price plus V.A.T 50% of this fee is generally paid at the initial signing of the compraventa-purchase contract and the final 50% paid upon completion.
copyright 2008, Jose Luís Morales - Servicios Inmobiliarios - C/ Constitución, 26-03160 - Almoradí (Alicante) Tlf/Fax: 96 678 25 34
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