Buying info
The buying process
Assuming you find the property you are looking for, a deposit will be required in order to remove the property from the market. A private contract will be prepared outlining the specification of the finished property (assuming construction is still underway) & agreed timelines for completion (off-plan). The amount of the deposit will vary depending on the nature of the property, resale or off-plan, construction underway or construction complete. Typically a 20-30% deposit is required during the construction period & less for resale.
You will need to open a Spanish bank account which we can help you achieve. The banks are friendly & generally happy to have the extra custom. Also, you are required to be registered for tax reasons & therefore an N.I.E is required by any foreigner buying a property, car, and insurance policy. Depending on the province of the property being purchased this is obtained from either Seville or Cadiz (in some cases more local town’s), we’re more than happy to assist preparing the correct paperwork & accompanying you in person.
A solicitor (Abogado) will need to be appointed on your behalf, which again we can assist with if required.
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Costs
For budgeting purposes we would advise 10% of the purchase price. This is enough to cover the actual costs which are as follows:
- Purchase tax of 7% (Typically)
- Solicitor (Abogado) fees
- Notaries fees
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Completion
The completion of the sale takes place in the presence of a Notario, who is essentially appointed by the government to ensure that all paperwork is in order & each party understand their side of the transaction (it should be noted that the Notario is impartial & takes no responsibility for any legal agreement). A new Escritura (title deeds in the new owner’s name) will be applied for & will usually take no more than 4-8 weeks to come through.
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Other Tax & costs
Home owners are required to pay annual tax based on the rateable value of their property as well as local service tax (refuse collection etc) which is set by the town hall. These taxes (for this area) are typically no more than a few hundred euros per year). Additionally you are required to insure your home for re-build & it makes sense to insure your contents as well. Banks offer sound policies although independent brokers offer more competitive rates.
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Mortgages (see also our MORTGAGES section)
Mortgages (Hipoteca) are quite new to the Spanish & only just starting to take off in popularity. Rates are currently lower than in the UK & can be obtained from most banks. The application process is much the same as in the UK with proof of earnings being required. Set up fees are typically more than in the UK & this should be factored in. Unlike the UK the mortgage is tied to the property & not the individual and its therefore possible to purchase a property with a mortgage already attached.
Should you need more information that is not featured here please contact us & we will be happy to advise.
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