When purchasing a property in Spain it is important to get your budget set out and clear. Please note that on top of the property purchase price there is usually 10-13% in fees for the Notary, Land Registry and legals. If a Mortgage is required, an additional 2% of the amount loaned is to be considered.
- Once the offer has been accepted by the vendor, a refundable reservation fee of €6,000 is paid to either the seller’s agent or buyers’ solicitor.
- Once this is paid, the property is taken off the market.
- Once the buyer is satisfied with the legal checks a private purchase contract is drawn up between the buyer and the seller and a 10% deposit is paid to the seller.
- Once this deposit is paid and the contract signed the transaction is in motion. If the buyer backs out, they will lose the deposit and if the seller backs out, they must pay back double.
For the completion on the transaction the buyer’s solicitor will arrange a date with the notary. If everything is in order both parties sign the Escritura (Property Deeds). If for any reason the buyer is unable to attend the Notary, Power of Attorney can be arranged to be granted enabling another person to attend on the behalf of the buyer.
Anyone purchasing a property in Spain are required to open a Spanish bank account. This can be done in a matter of hours. All that is required is a valid passport and a deposit in the bank account. However, in order to open a bank account a NIE number is required. This is a tax identification number and is required by law. We can help the buyer arrange for this to be done.
Once your property is up and running there will be yearly running costs to consider. These include
- IBI this is essentially the Spanish version of UK Council Tax and is far cheaper. It depends on the location of the property.
- Community Fees this is usually between €600-900 PA.
- Utility Charges - Depending on rates and charges
- Property Insurance