Buying Tips

THE BUYING PROCESS

Your decision is not just about buying a home but integrating yourself into a whole lifestyle. The best way to approach to find your perfect home in Spain it´s to meditate your decision. It is an important decision for your family . Before traveling it would be a good hint to have a rough idea of what your dream home might look like, your budget and your preferences regarding the environment in which the house is to be set . This will help us once you arrive to make the most of your visit.

 

CONTRACT AND TITLE DEED

Once a price has been agreed, you will be required to enter into a purchase contract and pay a deposit (between €3.000 until €6.000 euros), thus securing the property in your name. It would be normal to have to make at least one staged payment ( 30% or 40% of the price) between signing the contract and completion. And at completion do you have to sign the title deed in a Notary office.

 

NIE

A NIE number (a compulsory number that recognises you as a foreigner in the Spanish tax system) it´s necessary to buy a property in Spain.

 

BANKS

You will need to open a Spanish Bank account when buying a property. It will be necessary to pay the electricity and water invoices, community fees if you have then, etc. We can help you choosing the best option close to your property. However you are always free to use which ever bank suits you best.

 

SOLICITOR

It is not compulsory to use a solicitor when purchasing a property in Spain however, we would always recommend independent legal representation during the buying process and to grant your solicitor Power of Attorney. The solicitor will only action anything once they have written approval by you. He can obtain your NIE number, open a bank account and also set up your utilities. Solicitor’s fees vary from company to company. It is important to get clarification from your chosen solicitor of exactly what their charge includes and ask for the cost of such extras. In general, the costs of a solicitor varies between €1,000 to €1,500 + VAT.

 

EXPENSES

The following is a guide to expenses for any purchase of Spanish property. You should add:

  • VAT (IVA in Spanish) 10% of the property price
  • Land registry and notary costs it´s around 1%
  • Stamp duty 1,5%
  • Solicitor Typically €1,000 to €1,500 + VAT
    • Mortgage costs (including stamp duty) and set-up fees 1% to 2%
  • Other expenses on completion. e.g. first years insurance, first quarter's community fees

Example:

Price: €150.000

VAT: €15.000

Notary and Land Registry: €1.500

Stamp Duty (AJD): €2.250

Solicitor: €1.000

Total including Expenses: €169.750

 

MORTGAGES

We currenty have selected properties we can often get you anywhere between 60% up to 70% mortgages using the same bank as who the sellers mortgage is with.