Property Directors | Buying Process / Costs Involved in buying Spanish Property

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Buying Process

The buying process in Spain is somewhat different to the UK but it is possible for the purchase to complete within weeks instead of months. The following '10 Step' guide shows the usual process for buying property in Spain.

  Appoint an independent Lawyer/Solicitor (Abogado) with Power of Attorney
  Pay Initial Deposit, usually €6,000 to reserve property.
  Obtain an N.I.E. (Foreigners Tax ID number required for Non-Residents)
  Private Contract is signed and this usually takes place within two weeks
For New properties a deposit of 20% - 50% is then paid (less initial deposit)
For resale property 10% of the purchase price is usually paid to the vendor
Date for completion is mutually agreed between buyer and seller.
Completion takes place at the Notary´s office with the title deed (Escritura)
Property registration takes place at the Land Registry
The Notary handles the relevant Transfer Tax
  Lawyer sets up Spanish Bank Account and essential utilities for new owner

Costs Involved in buying Spanish property:

As a reasonable guideline you should budget for an additional 10% over and above the full purchase price to cover:

  New property purchase – 7% IVA (VAT) plus 1% Stamp Duty
  Resale property – 7% Transfer Tax on declared value
  Land purchase – 7% IPT
  Notary costs (approx €450 on a purchase price of €60,000)
  Lawyers fees. 1% of purchase price (subject to a minimum charge)
  Property Registration fee (approx 40% of the notary fees)
  IVA @ 16% (VAT) payable on notary and lawyers fees.
  Power of Attorney (approx Euros 150)
  Número de Identificación de Extranjero (N.I.E.) (approx Euros 100 per person)
Plusvalia (increase in the value of the land). Normally paid by the Vendor.

Notes:
All costs are estimates and for guidance only.

Power of Attorney: If you do not plan to be in Spain during the Conveyancing process we strongly recommend that you appoint your Lawyer in Spain with Power of Attorney to be able to facilitate the transaction in your absence without unnecessary delays. A Power of Attorney can be drafted by your lawyer for your signature near your home if you are unable to be in Spain.