The process of buying a property consist several steps:
- To make a request in the real estate agency.
- The real estate agent will prepare the list of the interesting properties according to your request.
- Viewing of the interested property or project and choosing of the one to buy.
- Preparation and signing of the pre-contract for the selected property with the lawyer.
- Reservation of the selected property by the paying of a 10% deposit.
- Receiving of the NIE number (Número de Identidad de Extranjero) if necessary by the buyer (it takes approximately 14 days).
- Opening a bank account for the buyer if necessary in the chosen bank and preparation of all documents for the mortgage if necessary. Examination of all documents and obtaining a mortgage takes around 2 months.
- Signing of the purchase agreement (Escritura Publica) with the notary, paying of all necessary expenses connected with the deal (property price, notary fees, agent fees and taxes). When the deal is finished the buyer gets the keys.
- After getting Escritura Publica the buyer should register it in the Registro de la Propiedad and it takes around 2 months.
Legal support
During the whole process of purchasing the property our company recommends to use the lawyer services. The lawyer will:
- Check the status of the selected property in the Registro de la Propiedad, checking who is an actual owner of the property.
- Check if there are any debts on the property, as well as prepare the pre-contract.
- Organize the meeting with the notary.
- Contact the lawyer of the seller and represent your interests on this deal.
- Pay all necessary taxes on your behalf.
- Register your newly purchased property in the Registro de la Propiedad and provide you with consultation with regards to owning property on the territory of Spain.
Mortgage
Our agency can assist you in obtaining of a mortgage with the Spanish banks. Usually the mortgage is 50-60% of the property price and the interest rate is around 3%. The mortgage period is 20-25 years. Bank commission for giving the mortgage is 1% of the mortgage amount.
Transaction costs
9-12% of the property price the buyer should be prepared to pay for the taxes, notary and lawyer fees. This includes:
- Property transfer tax (Impuesto sobre Transmisiones Patrimoniales – ITP) in case of purchasing of a pre used property (8-10% depending on the property price) or value added tax VAT (Impuesto sobre Valor Anadido – IVA) in the case of newly built property (10%).
- Notary and registration fees: notary fees for the registration of the new property owner and transaction processing are 0,5 – 1% of the official price of the property mentioned in the Escritura Publica.
- Lawyer fees: 1% of the sale price of the property.
Taxes and expenses owning the property in Spain
- Annual property tax (Impuesto sobre Bienes Inmuebles – IBI) which is 0,4 – 1,1% from the cadastral property price depending in which region the property is situated.
- Non-resident Income tax for the non-resident property owners in Spain. The amount of this tax depends on the cadastral property price and the personal financial situation of each property owner. Our agency would recommend consulting with the tax lawyer (gestor) who will calculate the tax for you and prepare the declaration form on your behalf.
- Community fees
- Property insurance
- Property management fees if necessary