Once you have found the property for you and a price has been agreed, you will need to sign a reservation contract and pay a 3000€ deposit to secure the property.
Then, after around 20 days with the help of a solicitor/legal representative a purchase contract would be drawn up with all the details of completion date etc.This is signed by both parties and an interim payment normally of 10% is paid.
Most of the paperwork and organisation required is arranged by ourselves and the solicitor, one thing any buyer should be aware of is the buying costs associated with purchasing a property in Spain.
Below are the details of the costs attached with your purchase:
- Property Sales Tax which varies on the type of property and the type of seller, for example if its a new build property the purchaser will pay 10% in VAT (IVA in Spanish) plus 1.5% stamp duty. If the property is a resale then a Transfer Tax (Impuesto Transmissiones Patrimoniales ITP) is to be paid, this is charged at 10% (Valencia region) or 8% (Murcia Region) but no IVA is to be paid.
When purchasing a plot of land or commercial property the amount of VAT payable increases to 21%.
Fees – additional fees on top of the tax will add up to between 4,000€ and 5,000€ and are made up of the following:
- Notary fees and Land Registry fees (always paid by the buyer)
- Legal fees
- Administration fees for setting up utilities in your name
Mortgage fees will also add an additional cost, most banks charge a set up fee and a fee for the official bank valuation on the property. If you are purchasing a property with a mortgage you should expect an additional charge which your lender will advise on applying.
For any questions regarding the cost of buying your property in Spain please do not hesitate to contact us.