Tips to Buy a Property in Spain
The purchase process on the Costa del Sol
Procedure of purchase of property in Spain.
Here is an easy-to-follow guide for property buyers in Marbella and the Costa del Sol. The procedure of buying a property in Spain is simple and includes the following steps:
1. - First of all, one of our specialized agents will help you find the property you want to buy..
2. - Then we will submit the offer and negotiate directly with the seller on your behalf to get the minimum possible price. There may be another vendors counter offers, but we will work to agree on the best price for you.
3. - Once we have established that you wish to continue with the purchase of this property, you will be asked to sign a Booking or Purchase Intent contract and make a deposit payment, which is usually 6,000 euros with your attorney. This Purchase Intent Agreement will establish a period of time for the transaction of the property and the property will be withdrawn from the market, so that you have complete peace of mind.
4. - If you need financing for a portion of the property purchase, your agent may recommend mortgage brokers to compare the terms of loans from different banks
5. - The legal process then begins and the lawyer will take care of due diligence on the property. If your lawyer finds legal problems with your property, the deposit of €6,000 is usually 100% refundable.
6. - Approximately two to three weeks after the initial booking and after your attorney has completed the legal searches, you will need to sign the Private Purchase Agreement and pay the full 10% deposit (minus 6,000 euros already paid). The buyer will lose their deposit if they change their mind (and the seller must return twice the deposit amount if they choose not to sell at this stage). The buyer and the seller will agree on the final end date by a notary public.
7. - Approximately three to four weeks after signing the Private Purchase Agreement, completion will be made, when the balance of the purchase money will be paid, plus taxes and costs.
8. - The most important stage! – Collect the keys to your property and start enjoying the new dream home in the sun!
Tases and taxes when you buy in Spain
The guide to fees and taxes when buying a property in Spain. (*percentajes aprox.):
- VAT on new properties (10%)*, Transfer tax on resale properties are on a scale: (8% for 400,000 euros or less, 9% between 400,000 and 7000,000 euros and 10% if it exceeds 700,000 s)
- Stamp duty, only to the new properties. (1.5%)*
- Notary and property registration (1%)*
- Lawyers (1%)*
- Mortgage Commissions (1%-3%)*, in case a buyer finances through his bank.
Tases and annual taxes for owning a property in Spain.
The annual fees and taxes for owning in Spain are very low (compared to the rest of Europe):
- The local real estate tax (IBI-real estate tax), our agent can inform you about the property you choose. This varies with each property, and is paid annually.
- Garbage rate. It depends on the area in which the property is located, and is usually an annual tax.
- Community fee, in case the property is part of an apartment complex or urbanization (covers the cleaning and maintenance of common areas and swimming pools). This is paid monthly.
- Water, electricity, gas, telephone and internet receipts must be paid by the user. Monthly or every 2 months.
Our designated lawyer in Spain will help you set up all these payments under your name, once you own the property.
Our real estate expert can give you exact amounts for any property you want!
For more help buying a property in Spain, please contact us