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Buyers Guide
Move to Spain does not believe in using jargon or complicating the issue unnecessarily. Outlined below is a simple guide to help you understand the Spanish property buying process. Although as with all financial transactions you are advised to take independent legal advice in order to satisfy yourself before entering into a legally binding contract.
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Spanish Bank Accounts and Spanish Mortgages Move to Spain can introduce you to Spanish banks which provide state of the art banking facilities including internet banking, mortgages and an English speaking telephone helpline answered by a real human being! The Right to Buy Property in Spain Residents of member countries of the EC who hold a European passport have an automatic right to buy property in Spain. No permission is required. Surveyors In Spain, it is not standard practice to have a property surveyed, but Move to Spain would recommend that you take this sensible precaution – just as you would in England. If you are buying with a Spanish mortgage, you will have no choice and the bank will ask you to pay for a survey. For cash purchasers, Move to Spain can introduce you to locally based English speaking qualified surveyors (FRICS) who can give you the peace of mind that a survey brings. Spanish Solicitors Move to Spain only recommends fully qualified locally based Spanish lawyers who are also fluent in English. For a fee of around 1% of the purchase price, you can be helped every step of the way. Lawyers based in inland towns tend to charge less than coastal lawyers so it can save you a lot of money to travel 30 minutes to meet your lawyer. |
The Notary Your solicitor can represent you at the notary office where the sale and purchase completion will take place. This is when the money and the property changes hands and the keys to your property are handed over to you, along with the Escritura or Title Deeds as they are known in England. At the Spanish completion meeting, every party to the transaction is present in person, and it is not unusual to see the buyers, sellers and the two sets of lawyers, as well as the bank manager and selling agent at the notary office on completion day. Property Purchase Fees On top of the price you have agreed to pay for your property, there will be professional fiscal and administrative costs to pay. Listed below as an approximate guide only, are the amounts you should budget to pay out in order to purchase a property in Spain:
Additional estimated fees relating to Spanish Mortgages Good value Spanish mortgages at very competitive interest rates can be obtained by UK residents and where this is the case there will be other additional legal and administration charges to pay. As an approximate guide, these will typically total around 2% of the property purchase price. These fees are to pay for arrangement fees, administration fees and mortgage tax. As with all property purchases, every transaction is different and these figures should only be used as a guide and every purchaser is advised to make their own enquiries before entering into a purchase agreement. |
The Spanish Property Buying Process
Deposits
We recommend that you only buy from a reputable licensed and registered agent or developer.
You should always obtain a receipt for any deposit and ask if it is to be lodged in a protected clients’ account.
Once you have decided on the property you wish to buy and agreed the price, you will often be asked for an immediate non-refundable holding deposit in order to take the property off the market. You should then enter into a simple private ‘option’ agreement followed by the formal contract which is usually produced during the next 4 to 6 weeks.
With new build properties the initial holding deposit will usually vary between 4,000 euros and 6,000 euros depending upon the policy of the agent, promoter or developer.
For resale properties the selling agent may ask for an immediate deposit of up to 10% of the full purchase price.
Each agent will have their own policy and this can vary depending on the instructions which they have received from the vendor.
Contract Signing
It may be easier to assign a ´specific´ Power of Attorney to your Spanish solicitor who will be well placed to advise you and act and sign on your behalf, but only for the specific purpose of purchasing your chosen property. Move to Spain only work with qualified English speaking Spanish solicitors.
Disclaimer: The Move to Spain Buyers Guide is designed as a help to prospective buyers. However, Move to Spain cannot be held responsible for any errors, omissions or subsequent changes to Spanish tax laws. Buyers should always satisfy themselves of all financial and legal aspects of any transaction before entering into any contract.