Purchasing a new property.
When you purchase a new property the builder will require you to pay a reservation deposit of 3,000 Euros - this is non-refundable.
Four weeks later after signing the purchase contract, 50% of the purchase price plus IVA (VAT) has to be transferred to the builders bank account.
The balance plus IVA (VAT) minus the reservation deposit - is payable on completion.
You can request the builder provides you with a bank guarantee for each of the amounts you have paid. The builder may request you pay the bank for this guarantee.
Please note the above are the normal arrangements - but you should check your contract for confirmation.
Purchasing resale property.
When you purchase a resale property the seller will require you to pay a reservation deposit of 3,000 Euros which is non-refundable. The balance plus IVA (VAT) to be paid at the Notary's office when signing the Title Deeds, usually 6 - 8 weeks after signing the reservation contract. The date to be arranged between the seller and purchaser.
Notary.
Both the seller and the purchaser must appear before the Spanish Notary to legalise the contract. The Notary's job is to act as an impartial witness to the transaction and provide assurances that;
The identity of each party is verified from valid ID documents
Once registered in the property registry, the title deeds are sent back to the Notary's office where they are kept. You will receive a first copy of this public document. If either party is not fluent in Spanish then the Notary requires an interpreter to be present.
Purchase related taxes.
Value added tax (IVA) 7% of the value declared in the title deed (new houses only). Capital transfer tax and stamp duty 0.5% of a new property or 7% of the declared value for resale's.
Mortgages.
You can finance part of the property with a Spanish mortgage. This should be arranged well in advance with you agent or bank. Non-residents can normally expect to finance 70% of the value of the property.
N.I.E Number.
Every person who wishes to purchase a property in Spain must have an N.I.E number. This will be arranged by your solicitor before you sign the title deeds. You will require four passport photos.
Progress visit.
This is recommended if you are purchasing a new property. This can be very important as it will allow you to inspect the progress build of your new house and acquire your N.I.E number. It is recommended you hire a car on this trip and get to know the area. We can provide accommodation at reasonable rates. This is also an ideal time to shop for furniture etc on this trip. We can advise you on reputable furniture suppliers and we have many contacts for air conditioning, alarms and satellite TV etc..
Fiscal / Legal representation.
We will organise a Spanish solicitor for you if required who speaks English. They will arrange the Notary, N.I.E number and Title deeds etc.
Bank account.
We can arrange to open a Spanish bank account (recommended) while you are on a viewing trip. Please make sure you have your passport with you.
Money transfer.
It is important that the fund to cover the purchase of your house is in place in your bank 14 days before completion to avoid any unexpected problems. When purchasing new properties this money does not go to the builder but into your own Spanish bank account.
Snagging.
Prior to appointment with the Notary we can arrange a trip to see your new house and to check over the property and if necessary carry out a snagging list. This ensures that any outstanding matters can be carried out so as not to delay completion of the property.
Complicated ?
It may look that way but we are here to help you through everything and make the purchasing and completion of your property simple.
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