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Buying Property in Spain

What do we need to budget for when purchasing a house?

Our dedicated team is here to ensure that buying a property in Spain will be straight forward and stress free. Here at OP Group Spain we will be able to assist you through every step of the buying process.

When looking to purchase a property in Spain, it is important to take into account the fees that are involved. For a re-sale property you should budget for around 13% of the purchase price to cover the following:

10% Re-sale purchase tax (Spanish equivalent to VAT)

House buyers of a re-sale property (as opposed to brand new) are required to pay the Impuesto de Transferencia de Propiedad - Transfer Tax - which is now 10%.

New Properties Purchase Tax

Since 1st January 2013 buyers of brand new properties in Spain are liable to pay 10% IVA (VAT)

Lawyers:

The majority of Spanish lawyers charge a percentage fee usually between 1% - 1.5% of the final price paid for the property, however, these fees are generally negotiable. We would recommend agreeing a fixed fee before appointing a legal representative to act on your behalf.

Translators:

Your lawyer may be able to see to all translations, in which case he may charge separately for this service. Otherwise you can expect to pay an hourly rate to an agency / individual.

Notary Fees

The Notary fees are set by the Spanish state and the final payable amount will depend on the value of the property that you are buying. A notary must be present when the parties involved sign the public deed of purchase (escritura).

Land Registry Fees

To register the property at the relevant Land Registry Office.

Plus Valia

Municipal tax levied by the relevant Town Hall in accordance with Spanish Law, the vendor is usually liable to pay the Plus Valia Tax. However on new properties it is paid by the purchaser.

Buying Process

Once you have decided on a property and a price has been mutually agreed by both parties it is important to reserve the property (usually a 3.000 Euro deposit is required). Once the deposit has been paid the property will be withdrawn from sale.

The next step is to draw up a sale and purchase contract that must be signed by both the selling party and the buying party which will state a date of when the property will be signed for. The completion date will obviously differ to suit individual needs. If the completion date is to be longer than 4 weeks then it is usual that a further payment (usually 10% of the purchase price) is paid within 28 days of signing the sale and purchase contract.

During this time we will liaise with the notary/solicitors and prepare the paperwork that is required. On the day of signing, both parties will be present at the notary with their solicitors, along with an OP Group Spain representative. It is here where the remaining balance will be paid.

Once the contracts have been signed and the title deeds exchanged, you will then officially be the new owner of the property.

Mortgage:

If you require a Spanish mortgage for the purchase then we can help you get quotes from local banks. Mortgages of a 70% loan to value (LTV) are obtainable against most properties (unless buying a bank repossession or special finance deal).