The property purchase
Introduction to property purchase in Spain
The process of purchasing a property in Spain is similar to the process in any other European country. There are however some differences. Although we would like to discuss every detail with you personally, we hope this paragraph will help you get a first orientation:
You take the decision to purchase a property, what to do then?
Once you have decided for a particular property, you can reserve the property by entering a private contract of option to purchase and making a down payment - in general 10% of the purchase price. The contract of option to purchase includes all the important purchase conditions: purchase price, latest date for completion, transmittance of the property free of charges, inventory list of the furniture, etc. Both parties - buyer and seller - are equally obliged, i. e. if one of the parties is not fulfilling the contract, they have to pay an indemnity to the other party.
The property is officially transmitted to the Buyer at the signature of the Deed of Conveyance (Escritura Pública de Compraventa) before a Notary Public; simultaneously the buyer pays the total purchase price. The Notary Public receives from the Land Registry Office information about the property and certifies this in the deed. He advises both parties on their rights and duties, especially on tax matters. The Deed of Conveyance must then be presented at the Land Registry for its registration, this process takes 1 to 3 months.
Taxes and legal fees related to the purchase:
Following are the main features of this chapter: purchase tax, Notary's and Land Registry's fees, handling fees and translations. On average one has to reckon 8-10% of the purchase price, however we will make for you a detailed estimate on each particular property you are interested in.
Also after having bought the property there are taxes payable (Land Tax, Income tax, the Wealth Tax was eliminated in 2008). Generally these are relatively low in Spain, they do not represent a high yearly charge. If the property belongs to a complex with community facilities ("comunidad"), there will also be a maintenance fee to pay for these. In each particular case, we will inform you in detail about these and other matters as insurance, etc. and elaborate a detailed estimation of expenses (purchase and yearly expenses).